This chapter discusses organizational structure and the structural perspective. It covers structural assumptions about rationality and efficiency. The origins of structural thinking come from Taylor's scientific management and Weber's bureaucracy. Organizations must balance differentiation of work with integration through coordination. Vertical coordination uses authority, rules, and planning systems, while lateral coordination employs meetings, task forces, and matrix structures. The chapter contrasts the different structures of McDonald's and Harvard despite their success. Structural design depends on size, goals, environment, workforce, and technology.