What is organizational structure

The specification of the jobs to be done within an organization and the ways in which those jobs relate to one another. 

The first step in developing the structure of any business, large or small, involves three activities:

1. Specialization: determining who will do what.

2. Departmentalization: determining how people performing certain tasks can best be grouped together.

3. Establishment of a Decision-Making Hierarchy: deciding who will be empowered to make which decisions and who will have authority over others.