What does organizational structure refer to?

Organizational structure fundamentally pertains to how tasks and responsibilities are divided, coordinated, and aligned within an organization. This structure determines the flow of information, decision-making authority, and the allocation of resources within the organization. A well-defined organizational structure helps ensure that tasks are completed efficiently and that there is clarity regarding roles and responsibilities among employees.

While the physical location of employees is important for operations, it does not encompass the broader context of how a company functions as a whole. Hierarchies of decision-making certainly exist within an organizational structure, but they represent only one facet of the comprehensive design that includes various divisions and teamwork. External relationships, although critical for business success, fall outside the realm of organizational structure, which is internally focused on task distribution and coordination among different roles within the organization. Therefore, option C accurately captures the essence of organizational structure as it relates to the arrangement and management of work within the company.