Organizational Structure is described as how the organization is put together to get things done and if this structure contributes to effectiveness.

Example:

The board and executive director agreed that a key strategy for enhancing the effectiveness of their organization was to shorten the communication chain within their agency. They determined that an informal test of their effectiveness would be the absence of the phrase, "I didn't know that!," when hearing information for the first time.

The communication "misses" continued to happen in spite of everyone's resolve to keep others informed. There was no convenient way to pass information from one area to another, especially to those outreach workers in the field. Besides, it was difficult to imagine that people in one program area needed to know much of anything about the other program areas. Any information that was passed on was passed on because people happened upon each other.

A lack of agreement also affects the effectiveness of the organization. This has a negative impact because the resulting behavior often appears to come from clashes of personality instead of an ineffective organizational structure. The concept of RACI will helps to explain this. (R who has the responsibility; A who has the authority; C who gets consulted; and I who gets informed). Without clarity, the executive director and the president of the board may clash if they both think that they have the authority. They may engage in blaming each other if they think the other has the responsibility.

Of course, the other consideration is to periodically evaluate the organization's mission to determine if it continues to be realistic and timely. Perhaps the organization can't serve as many as it would like or can't deliver as much as it would like, given limitations on finances, staff, volunteers, time or technology.