INTERNAL FACTORS OF ORGANIZATIONAL STRUCTURE

Abstract

In order to realize the mission of business organization, which is the reason of its existence, it requires certain organization of elements in
a way to result with the achievement of outlined mission. All these elements, the parameters are organized into a single organizational
structure. Such a structure shows in which way are the given elements connected to each other, parts of the organization and the
hierarchy of authority and commanding. It can be freely stated that the organizational structure is a mean through which managers
achieve the outlined aims. Organizational structure once defined, is not unchangeable or given once forever. It is influenced by numerous
factors which can be, more or less, influenced by the company. Initial factors for changing the organizational structure can come from the
organization itself, and the management can influence them, as opposed to factors coming from the environment, outside, in which the
impact is very small or impossible. The aim of this work is precisely to illustrate the internal factors of organizational structure, and
interdependence of these factors and the organization. Each business entity exists to realize its mission. Its aim will be achieved by a
defined strategy and aims for achieving the intended strategy. In order to accomplish this aim, the management must involve the
technology in its implementation phase as well as the human factor, as the most relevant one, without which all this would just remain as
a piece of paper. This work will illustrate the internal factors of organizational structure, but will also point out how changes in these
factors concomitantly cause the changing of the organizational structure, which leads to the fact that the organizational structure is a
flexible category and that the degree of its successful realization is reflected in that flexibility.