Finance

Gartner Glossary

Organizational Structure

An organizational structure is a system that defines an organization’s hierarchy and workflows through the organization. The organizing principle determines how employees and resources are grouped into departments or business units.

Organizational structures are typically either task-based (grouping employees who do similar types of work, as with functional alignments) or outcome-based (grouping employees who do different types of work to support a particular business objective, such as products, processes or customer segments).

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