Significance of organizational structure

Answer 1

1. Clear cut authority relationships: Organizational structure helps in delivering authority and responsibility among employees in an organization. It signifies the duties and responsibilities concerned with particular post to concerned persons. It helps in recognizing roles for each employee and his accountability to the organization. It also correlates relationships of one organizational member to the other members.

2. Pattern of communication: It provides the patterns of communication and coordination in an organization. Organizational structure helps in grouping activities and people and so it facilitates communication between people centered as their job activities. The sharing of information helps person in solving their joint problems.

3. Location of Decision Centers: It determines the location of centers of decision making j in the organization.

4. Proper Balancing: It helps in creating proper balance and lays emphasizes on coordination of group activities in the organization.

5. Stimulating creativity: An efficient and sound organization structure provides well defined patterns of authority that stimulates creative thinking and initiative among members of the organization. Every organizational member understands his power and utilizes it to perfection to get appreciation in the organization.

6. Encouraging growth: It provides the framework within which an enterprise functions. If the structure of organization is flexible then it will help in meeting challenges and creating opportunity for growth. It helps in facility growth of the enterprise by increasing its capacity so that increased level of activity can be handled.

7. Making Use of Technical Improvements: Adaptability to the change in a sound organizational structure and in making maximum use of latest technology. It modifies the existing pattern of authority responsibility relationship in respect to the technological improvements in the organization.