Analyze the importance of organizational structure in a business a Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand what organizational structure is.
- Understand the various organizational structures and how they impact the efficiency of any company
- Apply organizational structure to practice
1.0 INTRODUCTION
What is the organizational structure of a company and its functions? Organizational structure is defined as the strategic relationship between physical factors and personnel factors that are required to maximize the performance of an organization. The organizational structure demonstrates the authority and responsibility that exists at the various positions of the organization. It sets the tone of communication and coordination in the business. This essay is going to discuss in detail the importance of organizational structure in an organization.
What is the importance of organizational structure in human resource management? Organizational structure facilitates decision-making in an organization, it ensures that the organization reacts properly to both the external and internal factors affecting the organization. There are a number of factors that influence the structure of organizations depending on the objectives and culture.
What are the benefits of organizational structure? The benefits of organizational structure are; a) it facilitates decision-making in an organization, b) it ensures that the organization reacts properly to both the external and internal factors affecting the organization, c) determines the various ways through which an organization will conduct itself in order to achieve its objectives among so many others. The organizational structure ensures that everyone in the organization is allocated responsibility for the different functions to be carried out.
What are the types of organizational structures? The different types of organizational structures are hierarchical, flat, flatarchy, functional, divisional, and matrix. Organizational structure may be tall; here an organization has many levels of organization and supervision, it may be a flat structure where it has few levels of management between the executives and employees, and it may also be hierarchical where command or management comes from the top among others which are going to be discussed in detail the following sections of this paper.