2. Organizational Structures & Networks

Formal Organization

The official structure with explicitly defined job roles, management tiers, and visual reporting lines established by an organizational chart.

Informal Organization

The network of unofficial social interactions, personal relationships, and informal networks that naturally develop among employees

Advantages of informal organization

Speeds up communication and problem-solving; cuts through rigid bureaucracy; fosters social support, trust, and peer learning.

Disadvantages of informal organization

Can spread unverified rumors and inaccurate data; may resist organizational changes or formal authority; creates exclusive cliques leading to social exclusion.

Horizontal Dimension

Division of labour accomplished by grouping jobs into departments or divisions based on specialized functions or operational needs

Vertical Dimension

Authority relationships and reporting chains established to ensure alignment and coordination toward common organizational goals