What Is The Importance Of Organizational Structure?

What Is The Importance Of Organizational Structure?

1 Answer

  1. Organizational structure is the visual depiction of what the flow of command and decision making in an organization looks like. Lister below are some of points that indicate the importance of organizational structure:
    1. Better communication: Since the structure is laid out, communication becomes any easy aspect. There is clarity within the divisions.
    2. Clear Reporting Relationships: The employees are well aware of their reporting authority because of the organizational structure and the process is stream lined.
    3. Growth and Expansion: As the company grows it becomes even more important to place the right people in the right place. Having an organization structure makes this task easy.
    4. Better Co-ordination: Co-ordination and interaction between divisions or within divisions becomes efficient.
    5. Efficient Policy implementation: The goals and policies set for organization are better followed when organizational structure is laid out accurately.

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