Understanding the historical context from which some of today's organizational structures have developed helps to explain why some structures is the way they are but Taj using a structured which is more horizontally capitalizing on the innovativeness of their employees. Part of the reason, as this section discusses, is that organizational structure of Taj that has a certain inertia—the idea borrowed from physics and chemistry that something in motion tends to continue on that same path.

From the very beginning of Taj was thriving. When industries was shifting from job-shop manufacturing to mass production, and thinkers studied the new systems and developed principles to determine how to structure organizations for the greatest efficiency and productivity, Taj adapted all the new thoughts.

First, the emergence of the traditional organizational structure in Taj provides additional detail regarding how this affected the practice of management. The structure of Taj is unique in some respects, but the structures were developed or are consciously designed to enable the organization to accomplish its work. Typically, the structure of Taj evolves as the organization grows and changes over time.

Second, the managers of Taj have to make decisions as they develop an organizational structure, although they may not be explicitly aware of these decisions. First, the organization's work must be divided into specific jobs. This is referred to as the division of labor. Second, unless the organization is very small, the jobs are grouped in some way or in other words jobs are departmentalized.

Third, the number of people and jobs that are grouped together are decided by the Managers. This is related to the number of people that are to be managed by one person, or the span of control—the number of employees reporting to a single manager.

Fourth, the way decision-making authority is to be distributed is determined.
In making each of these design decisions, a range of choices are possible. At one end of the spectrum, jobs are highly specialized with employees performing a narrow range of activities; while at the other end of the spectrum employees perform a variety of tasks.