ORGANIZATIONAL HIERARCHY
An organizational structure is a system that
outlines how certain activities are directed to achieve the goals of any
organization. These activities can include rules, roles,
and responsibilities, which are concerned with every member of an
organization.
An organizational structure defines how activities,
like:
That is directed towards the achievement of
organizational aims.
Elements
of Organization Structure:
Following are the main elements of the organization
structure;
- Division of Labor
- Delegation of Authority
- Span of Control
- Centralization and Decentralization
- Formalization
- Departmentalization
Businesses of all categories use organizational
structures heavily. They define a specific hierarchy within an organization and
if they are integrated with their customers and suppliers they made a parallel
hierarchy for them. A successful organizational structure defines each
employee's job (in the organization it is known as job description JD) and how
it fits within the overall system. Put simply, the organizational structure
lays out who does what so the company can meet its objectives and goals. In order
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Advantages:
The organization structure provides a company with a
visual representation of how it is shaped and how it can best move forward in
achieving its goals. Organizational structures are normally illustrated in some
sort of chart or diagram like a pyramid or hierarchy, where the most powerful
members of the organization sit at the top (like Director), while those with
the least amount is at the bottom (like labour).
Not having a formal structure in place may prove
difficulties for certain organizations. For instance, employees may have
difficulty knowing to whom they should report, in the same way, top management
may have also difficulty to whom they call for questioning about a certain
problem. It can lead to uncertainty as to who is responsible for what in any
organization. If you are working in the company and you want to share your
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Having a structure in place can help improve
efficiency and provide clarity for everyone at every level in any organization.
That also means every department can be more productive and efficient, as they
are likely to be more focused on energy and time.
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