Organizational structure helps a company assign a hierarchy that defines roles,

responsibility, and supervision. It’s the plan that outlines who reports to whom and who
is responsible for what. It’s usually recorded and shared as an organizational chart that
includes job titles and the reporting structure.

Internal factors that affects the organization

Leadership – Leadership greatly affects the organization. Because it is the vital
component of all organization. It is the backbone of all organization and it is the main
source of command and operations in any organizations.
Communication - Successful organizations thrive on robust communication practices,
where teams and team leaders communicate freely and often to improve results. This
two-way communication up and down the hierarchical structure extends from top to
bottom. Organizations with communication deficiencies often have rigid leadership
structures that destroy trust.
Learning or training- Learning or Training is one of the most fundamental human
activities and accounts directly or indirectly for the success of any organization. As
technological advances lead to faster rates of change, successful organizations need to
find a way to respond that encourages innovation and builds into every employee's
experience the opportunity to learn and explore.
Factors that may influence a company's decision to adopt a type of organizational
structure.
Organizational Size – The size of the organization is one of the factor to consider in
putting up its structure. The larger an organization becomes, the more complicated its
structure. When an organization is small for example single retail store, a two‐person
consulting firm, or a restaurant therefor its structure can be simple.
Organizational Cycle -Organization tend to progress through stages known as a life
cycle. Like human beings, most organizations go through the following four stages:
birth, youth, midlife, and maturity. Each stage has characteristics that have implications
for the structure of the firm.
Organizational Strategy – The way organization see things in their perspective and the
way they tend to handle difficulties in their management is one factor to consider. For
organizations is equipped with different strategies for different problems.
Organizational Environment – Environment is the world in which the organization
operates, and includes conditions that influence the organization such as
economic, social‐cultural, legal‐political, technological, and natural
environment conditions. Environments are often described as either stable or
dynamic.