Organizational

Organizational structure "is the formal system of relationships that determines lines of authority and the tasks assigned to individuals and units." (Gomez, Mejia & Balkin, p.232).

Organization structure is comprised of functions, relationships, responsibilities, authorities, and communications of individuals within each department." (Sexton, 1970, p.23). The typical depiction of structure is the organizational chart. The organizational chart has been described as looking like a tree, with the roots representing the president and the board of directors, while the branches symbolize the various departments and the leaves depict the staff workers. The result of the organizational chart was a clear line of authority showing where subordinates were accountable to their immediate supervisors (Chandler, 1988, p. 156).

According to Gomez, Mejia and Balkin (2002), the dimensions of organizational structure are vertical and horizontal.

1. Vertical

Indicates who has the authority to make decisions and who is expected to supervise which subordinates. It involves: unity of command, authority, responsibility, line authority, staff authority, span of control, centralization/descentralization, and formalization. (Gomez, Mejia & Balkin, 2002, p.232)

2. Horizontal

Is the basis for dividing work into specific jobs and tasks and assigning jobs into units such as departments or teams. Departmentalization is the horizontal dimension of organization structure. (Gomez, Mejia & Balkin, 2002, p.232)

Kudler Fine Foods is organized hierarchically by divisions, departments, groups and offices (stores). The business has a centralized structure with several layers of management that control the company by maintaining a high level of authority, which is the power to make decisions concerning business activities. The focus is on top management, whereby executives at the top communicate with middle managers, who then tell first-level managers, who then tell the staff what to do and how to do it. Low

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