Provide guidance
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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The objectives of the next higher unit in the organization.
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only the functions and positions needed to achieve the incident objectives
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