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Running head: ORGANIZATION STRUCTURE Organization Structure Krishna Cannon University of Phoenix ORG 502-Human Relations and Organizational Behavior Robert Robinson, Ph.D. March 22, 2006 "Organization structure refers to the division of labor as well as the patterns of coordination, communication, work flow, and formal power that direct organizational activities. An organization structure reflects the organization's culture and power relationships" (McShane, 2005). Organizations in essence create structure in order to facilitate the control of the actions of their employees as well as the coordination of activities. There are three components to structure; the degree to which activities are differentiated (complexity), how rules and procedures are utilized (formalization) and where the power of decision-making authority lies (centralization). These three components combined make up the organizational structure. Some organizations are rigidly structured in one extreme and at the other extreme are those organizations which are loosely structured (Robbins, 1989). Additionally, there are two design categories of the overall structure of...

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