Almost all authors dealing with theories of organization and management agree that organizational structure is a key factor for the success of any organization. In the organization process, one should choose an organizational structure that will effectively and efficiently obtain, based on the established strategy of the organization, the set goals. The organizational structure, of course, as well as the strategy of the organization itself, can be irrelevant if the organization does not have the qualified and competent human resources that will implement the strategy of the organization through adequate organizational structure in practice. The process of forming and designing a specific organizational structure differs significantly between real sector organizations and public sector organizations. An important component of the distinction is the dimension of formalization, that is, the degree and scope of acts that formally regulate relationships and processes within an organization. The amount of regulations that regulate behavior and relationships within an organization is far greater in organizations in the public sector to which the Croatian Electric Company belongs. The second component of the distinction between public and private sectors from the point of view of organization is the degree of centralization of management. In this case, too, public sector organizations have a greater concentration of decision-making powers at the top of the pyramid, therefore, they are more centralized, which indirectly leads to more organizational levels within the organization and more managers. On the other hand, organizations in the real sector are more decentralized and have fewer organizational levels, which in turn leads to delegation of powers and responsibilities to lower levels of management.