Organizations can be regarded as people management systems. They range from simple hierarchies along traditional lines to complex networks dependent on computer systems and telecommunications. Human resource managers can encourage organizations to adopt strategies (for their structures) which foster both cost-effectiveness and employee commitment. Organizational structure does not just tell us who is in charge of a company or business, but it also dictates the financial liability of those who own or run the business. The organizational structure of a business dictates what tax rules that business will be subject to, what and how much paperwork are required to comply with government regulations, the businesses avenues for raising money and what the owner�s personal liability will be. Organizational structures are classified into a number of types, including functional, pure project, divisional, matrix, federations and networks. Early organizational design divided enterprises into relatively simple parts, splitting them into defined activities such as production, marketing or personne......

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