Organizational structure is a system used to define a hierarchy within an organization. It identifies each job, its function and where it reports to within the organization.

Every company needs an organizational structure—whether they realize it or not. The organizational structure is how the company delegates roles, responsibilities, job functions, accountability ...

As a hierarchical structure grows, its hierarchy grows, too. Bureaucracies slow things – decision-making, communication, action – and the company becomes a lumbering, rather than spry, entity.

Hierarchical structure: Data is organised into groups, forming a hierarchy. For example, students within classes and classes within schools.

Unlike hierarchical models, flat organization structures eliminate rigid divisions, encouraging open communication and collaboration. Team members feel valued as contributors, not cogs in a machine.