The objective of this study was to assess the effect of organizational structure on employee’s performance in case of commercial Bank of Ethiopia, Bahir Dar city branches. To achieve the objective of the study established questionnaires were adapted from the previous research works. The study employed a descriptve research design due to its intent to find the effect of organizational structure on employee’s performance. Commercial Bank of Ethiopia, Bahir Dar City Branches population was 513 employees. Stratified random sampling used to sample 225 respondents who represented the total population of the study area with a 95% confidence level and 5% margin of error. A quantitative approach used and data were collected through questionnaires and analyzed using SPSS version 20 after coding and cleaning to eliminate any inadequacies. Data were analyzed using frequency descriptions, correlation, and regression analysis. Most importantly, a multiple regression model was applied to determine the cause and effect relationship between the dependent and independent variables. The overall result of the study indicates that centralization of authority has a negative effect on employee performance. On the other hand the four dimensions of organizational structure have positive effect on employee performance. The findings revealed that organizational structure components (layer of hierarchy, nature of formalization, pattern of communication and technology) tend to contribute positively and significantly in determining employee’s performance. To keep the benefit of having good employee performance, the importance of employing condusive organizational structure in the workplace is crucial. Thus the researcher recommended that the organization should take these organizational structure factors into strong consideration in order to ensure the effectiveness of employee performance and achieve the objective of the organization.