Without organizational structure, companies or businesses lack managerial authority, which guides matters related to human resources. Organizational structure is important- and here is why:
Organizational structure gives those working for you a sense of direction and some guidance for workflow. The structure provided offers an outline that indicates who does what and who reports where. This formality in the company’s structure makes it easier to integrate new staff with distinct positions and purposes, where they are most needed. This can lead to smooth future growth- but more on that later!
Speaking of smooth operation, a formal organizational structure indicates to employees to who they answer and report in a variety of scenarios and situations. This brings efficiency to the workplace and makes things a lot clearer for those working there. With the ambiguity out of the way, staff can focus on their distinct tasks and the entire operation can run smoothly.
Many companies adopt what could be considered to be a flat organizational structure, horizontal. This means that the team is all on the same front line, making decisions and managing authority equally. Certainly, this is an effective model in some industries and brands, with information flowing horizontally among the team and management. This type of structure provides staff with a sense of autonomy and many may feel more valued by the organization, overall.
Some organizational structures take on a vertical style of authority. That is, information is garnered at the top and trickles down to the lower levels of management. This works conversely when it comes to reporting and intervening in specific situations or events. In these instances, the organizational structure offers a roadmap for the proper response protocols.
It is far easier and more productive to manage a team with a formally organized structure- particularly when growth is an objective. Without organizational structure, a large staff and big company may become too much to handle and could get chaotic.
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