One aspect of the company that is often overlooked is the organization structure. By structure, this is not about the physical edifice of the company rather it is about how the activities in the company are structured to achieve the organization’s goal and vision. A good organization structure helps to achieve the following
Keeps the employee inform on their roles and duties
If there is anything organization structure helps to achieve, it is that it guides the employees on their roles and obligations. Companies with documented employee structure makes it easier for newly hired to learn and adopt the structure. This does not only keep the employees informed on their roles but also helps to keep the company focused and organized.
Improves operational efficiency
Without a well implemented organization structure, employees might find it difficult to understand who to report to. This does not only slow down the flow of employee’s productivity but also impede operational efficiency. Hence, organization structure helps to improve operational efficiency.
Simplify the flow of communication between the employee and the management
Organizational structure makes it easier for employees to relate with the management. For instance, in an accounting firm where the Chief Financial Officers work is dependent on the work of the finance and planning department, organization structure makes it easy for the two departments to work hand in hand.
Growth and Expansion
Companies with solid organization structure grow faster and easier than those that don’t. This is because organization structure makes it easier for companies to work towards achieving their collective goal as each member of the company has a clear understanding of his or her role. Good organization structure helps to ensure the right person is filling the right position. Also, as the company progresses, the organization structure also progresses with it.
Easier task completion
Beyond dictating the role of each individual in the company, organization structure also influences project assigning and project completion. Members of the team also have a clear understanding of their task and contribution to the project. Also they already understand how to go about the project, when it is due, and who to report to. Because the organization structure is such that it does not tolerate any form of lacity, this can affect the level of seriousness employees give to their job and the project at large.
The importance of having a good organization structure in a business cannot be underestimated. Organization structure affects every aspect of the company. It directly or indirectly influences the level of commitment each member gives to his or her job. At the same time, this affects the company’s overall level of productivity.
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