Organizational structure is defined as the formal configuration with respect to responsibilities, distribution of tasks and authority within the organization between individuals and groups (Galbraith, 1987 Greenberg, 2011). The structure of an organization allows it to accomplish its functions by connecting its departments. These departments can be characterized by aspects such as marketing, sales, advertising and manufacturing. These jobs are grouped together and there are many distinctions between the jobs people do (Nelson and Quick, 2011). Both the company's strategy and the situation of subunits and individuals within the company are affected by organizational structure, and failure to recognize the importance of a company's organizational structure would be detrimental to business performance (Amir-Atefi, DeCanio & Dibble, 2000).Zara, founded in 1975 by Amancio Ortega, is the flagship group of Inditex Group and one of the most successful fashion retailers in the world with 2000 stores present in 77 countries. The organizational structure chosen by Ortega is a flat structure with few levels of middle management between executives and employees. Ortega has rejected strict organizational structures in favor of a more flexible approach that thrives in the form of highly integrated, fast and efficient communication between its global network of points of sale and the central operations center in Spain. This reduces supervision and allows Zara staff to be more involved in the decision-making process, making them more productive. This structure is typically used in smaller organizations, but has proven effective for Zara. The flat structure encourages staff involvement using a decentralized decision-making process. ......middle of paper ......s decentralization techniques, we will look in more detail at the chain of command implemented in this organization. Chain of command is an organization's involvement in the flow of information and authority with the same organization. As a principle, the chain of command is how information and authority should progress in a hierarchical style, without neglecting an intermediate level. The chain of command style at Zara differs from other organizations, as its product and store managers have been placed in the same work environment. To avoid communication problems between departments, Zara's stores and factory are closely interconnected through the sales office. Vertical integration does not encourage coordination within Zara, but it is the design of the organizational and human interface that ensures integration that the report will now examine..