The arrangement of authority and responsibility in a business is known as?

The arrangement of authority and responsibility in a business is referred to as organizational structure. This concept defines how tasks are allocated, coordinated, and supervised to achieve the organization's goals. An effective organizational structure provides a clear picture of roles and relationships within the business, allowing for efficient decision-making and communication.

Organizational culture, while important, pertains to the values, beliefs, and behaviors that shape how members of the organization interact and work together, rather than the formal hierarchy in authority. Organizational design focuses on creating or restructuring the structure to improve efficiency and effectiveness, but it doesn't itself define the established authority and responsibility. Organizational planning relates to setting objectives and outlining how to achieve them but does not directly address the hierarchical structure of authority and responsibility within the organization. Thus, organizational structure is the most precise term to describe the arrangement of authority and responsibility.