What is an organizational structure?
An organizational structure refers to a visual chart of all functions, departments, inter-departments, positions and employees of the company. This is a very valuable tool when doing manpower planning, cost analysis, succession planning, etc. Various Human Resources software packages are driven by the company’s organizational structure in order to function properly. It is therefore important to note that a well though through organizational structure is one of the first building blocks when setting up a company in order to understand how many employees will be needed and the relationship between the different positions. The same applies to any extensions of a current company.
