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Organizational goals provide a company with direction and planning, and motivate employees.

Ensure alignment

Organizational structure should be aligned with business objectives and strategy. This ensures that resources are allocated efficiently, roles are defined, and processes are optimized.

Ensure accountability

Span of control, or the number of subordinates a supervisor has, ensures proper coordination and accountability among employees.

Enable employee growth

A hierarchical structure can be motivating for employees to understand how their careers can grow.

Enable efficient operations

Centralization can lead to more efficient operations, particularly if the company is operating in a stable environment.

Enable employee input

Decentralization allows employees to impact business decisions.

Some other factors that affect organizational structure include:

Company culture

A company's culture encapsulates the collective values, beliefs, and behaviors within the organization.

Company size

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Startups and small companies often adopt a flatter structure, but as an organization grows, some hierarchy will be necessary.

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