"Every company has two organizational structures: The formal one is written on the charts; the other is the everyday relationship of the men and women in the organization"
- Harold S. Geneen
About this Quote
This quote by Harold S. Geneen suggests that every company has two unique organizational structures. The very first is the official structure, which is described in the organizational charts. This structure is typically hierarchical and lays out the functions and duties of each person in the company. The second structure is the informal structure, which is based upon the daily relationships between the employees. This structure is not jotted down, however is based on the interactions between the staff members and how they collaborate. This informal structure is frequently just as essential as the formal structure, as it can have a significant effect on the general success of the company. By comprehending both the formal and casual structures, companies can make sure that they are interacting in the most efficient and effective way possible.