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CLASSS XII
SUBJECT: BUSINESS STUDIES
CHAPTER -5
ORGANISING
Topics- Organizing structure, Functional and Divisional.
(LESSON note -12)
Organization Structure
It seeks to establish relations among all the persons working in the
organization. Under the organizational structure, various posts are
created to perform different activities for the attainment of the
objectives of the enterprise. Relations among persons working on
different posts are determined. The structure provides a basis or
framework for managers and other employers for performing their
functions. The organization structure can be defined as the frame work
within which managerial and operating tasks are performed.
Relation between Span of Management and Organization structure
Span of management refers to the number of subordinates that can be
effectively managed by a superior. The Span of management to a large
extent gives shape to the organization structure. This determines the
levels of management in the structure. Arrow span of management
results in tall structure whereas wider span of management results in
flat structure.
