The Importance of a Organizational Structure

7/21/2019 The Importance of a Organizational Structure

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The Importance of a Organizational

Structure

By Joshua WallaceeHow Contributor

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The iportance of an or!ani"ational structure in#ol#es assistin! business owners$ C%&s$ andentrepreneurs to conceptuali"e$ #isuali"e$ and construct a hierarchical syste to be ipleentedinto their or!ani"ation' For e(aple$ the buildin! bloc)s of an or!ani"ational structure include* achain of coand$ span of control$ departentali"ation$ distribution of authority$ andor!ani"ation hei!ht'

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What is the +urpose of &r!ani"ational Structure,

The -portance of .ood Structure in an &r!ani"ation

1. Chain of Command

o /n or!ani"ational structure in#ol#es a chain of coand which deterines anddefines* 0ob positions$ who a)es the decisions$ and whos accountable for#arious duties'

Span of Control
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o Span of control deterines and uantifies the actual aount of eployees a

ana!er super#ises'

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Departmentalization

o :epartents within an or!ani"ation structure are sections of the structure di#ided

into functional di#isions ;such as the Sales :epartent< rele#ant to specific tas)s':eterinin! what acti#ities$ tas)s$ and talents are to be !rouped to best achie#ean ori!inations ob0ecti#e is called the departentali"ation process'

Distribution of Authorit

o :istribution of authority deterines if decisiona)in! authority is concentrated

aon! a few hi!hle#el fi!ures coonly seen in bureaucratic or!ani"ations or isthe authority shared and distributed throu!hout a #ariety of departents wor)in!closet to the their correspondin! tas)s'

Organization !eighto &r!ani"ation hei!ht defines how any departents$ di#isions$ and layers there

are between the hi!hest le#els and the lowest le#els of an or!ani"ation'

"hat is the Purpose of Organizational

Structure#

By Joshua WallaceeHow Contributor

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The purpose of an or!ani"ational structure is to define the !uidelines$ paraeters and the

procedural process necessary for a !roup to accoplish a ain ob0ecti#e' For e(aple$ theanatoy of an or!ani"ational structure is further reduced to the distribution of authority$ spanofcontrol$ line #s' staff structures$ or!ani"ational hei!ht and departentali"ation'/n or!ani"ational structure or!ani"es priorities hierarchically by eans of identifyin! tas)scritical to a !roup reali"in! an end !oal'


Types of &r!ani"ation Structures ? Their 5ele#ance

What -s the +urpose of an &r!ani"ational Chart,

1. Distribution of Authorit

o :eterinin! how an or!ani"ational structure distributes tas)s to accoplish a

ain ob0ecti#e in#ol#es identifyin! if the structure will adopt a decentrali"edstrate!y where si!nificant potions of the decisiona)in! process in#ol#es subordinates and the ana!erial staff across any le#els of the structure or both or ifthe structure will adopt a centrali"ed strate!y where the a0ority of decisiona)in! is ade fro the topdown'

Span$of$Control

o Spanofcontrol portion of an or!ani"ational structure defines the aount of

eployees an authority fi!ure is responsible for' /ccordin! to www'docstoc'co$the spanofcontrol is e(pressed one of two ways* a wide span of control where

ana!ers super#ise any eployees@ a narrow span of control where ana!erssuper#ise few eployees'

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%ine &s. Staff Structures

o /n or!ani"ational structure ay adopt a li#e structure or a staff structure or both

to achie#e their ain ob0ecti#es' / line structure$ soeties called a productstructure$ identifies the acti#ities directly responsible for the or!ani"ations ain!oal$ such as the labor in#ol#ed in a)in! an actually product' / staff structure isthe support staff or networ) assistin! the line structures in their !oals'

Organizational !eight

o &r!ani"ational hei!ht defines how any le#els or layers fro the decision a)ers

and down there are' &r!ani"ational hei!ht is e(pressed as tall or!ani"ations withany le#els or flat or!ani"ations with few le#els'

Departmentalization

o -ts critical for an or!ani"ational structure to deterine$ cate!ori"e$ and or!ani"e

the #ariety of tas)s to be accoplished when achie#in! a ain !oal and decidehow to separate specific tas)s fro others' This in#ol#es departentali"in! tas)s$resultin! in the foration of departents and di#isions within an or!ani"ationalstructure'

5ead ore * http*88www'ehow'co8factsA=1=717Apurposeor!ani"ationalstructure'htl

The Importance of 'ood Structure in an

Organization

By .eor!e ' 5oot ---eHow Contributor

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%ffecti#e ana!eent eans creatin! an efficient chain of coand'

/ copany with a stron! or!ani"ational structure is a copany that has a defined way of dealin!with issues and focusin! !rowth' Without !ood structure in an or!ani"ation$ the copany couldsend a confusin! essa!e to clients and eployees'


&r!ani"ational Structure of %ssays

What is the +urpose of &r!ani"ational Structure,

1. Identification

o Structure within an or!ani"ation is a defined chain of coand for each

departent and within the entire copany' -t is also a clearly outlined set ofpolicies that dictate how the copany does business'

!istor

o / copany with effecti#e structure fro the #ery be!innin! can outline a !rowth

path and focus on followin! that path' Without structure$ departents could be!into a)e their own rules that run counter to the !oals of the copany' This canstunt copany !rowth and create ar)etplace confusion'

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The Importance of a Organizational Structure