#2. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Small companies usually use a flat organizational structure. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. xiii. Clear-cut accountability provides re­cognition for the specialist and the professional in terms of their achievement. It lays the basis for other managerial functions such as planning, direction, co-ordination and control. Following are some of the important advantages of a sound organizational design which have enhanced its importance and have, therefore, made it indispensable: The function of organizing is required for the performance of other functions of management like planning, staffing, directing and controlling. The disadvantage lies in its rigidity and the length of time needed for information to flow through the organ… A flat organization is one where there are fewer layers of management, making communication to the top of the organization quicker. It Promotes Growth and Diversification: Only sound organisation designed on scientific principles can create conditions conducive to planned expansion and diversification of the activities of the enterprise. 3. Independent, creative thinking is stimulated. This ineffective administration can be removed by having a sound organisation. A good organisation is an asset to the management. Content Filtration 6. Delegation helps people at lower levels to do more challenging work. It encourages creativity, i.e. It can secure the optimum use of human efforts through specialisation. 5. If you’ve had a job, you likely worked in a functional organizational structure.The functional structure is based on an organization being divided up into smaller groups with specific tasks or roles. It facilitates in introducing changes in the enterprise by modifying the authority and responsibility relationship in the wake of new developments. iii. In other words, the value of each individual’s contribution is enhanced and at the same time the accomplishments of the group are increased. Workers, participation in organisation increases their cooperation and improves their will to work. The new entrants get sufficient training in their work. There is proper allocation of work. An organisational structure is defined as the pattern or network of relationships that exist among various positions. For example a hospital’s goal of caring for the sick would involve tasks ranging from purchasing equipment and supplies to hiring staffs and applying for accreditation or recognition, from various professional organisations. Enlarges Abilities 6. Good organizational structure and design helps improve communication, increase productivity, and inspire innovation. By providing training and practice on different jobs, and in different capacities, efficient organisation offers excellent scope to its employees for development. 5. THE IMPORTANCE OF ORGANIZATIONAL STRUCTURE IN EFFECTIVE MANAGEMENT: A CASE STUDY OF GENERAL COTTON MILL ONITSHA ANAMBRA STATE. Organisation structure coordinates the activities of the organization properly. Division of work and specialisation are the tools used to achieve the objective of optimum utilisation of material, resources and human efforts. As mentioned above, organizational structure has played its role in assisting a company to foresee the problems in line of command or even communication problem in order to develop or improve an employee’s skills and management . Implementation of policies and the achievement of the goals become easier. There are primarily two strategies. Incom­petent individuals are overused while talented people are under-utilized. How strong is the link between structure and business performance? With the help of a well-defined organisation management is able to perform the functions of direction, co-ordination and control. The organisation can undertake more activities without dislocation. xi. It is more than a mere chart—it is the best mecha­nism for management in action, i.e., leadership, motivation, coordination and control. It is an important means of bringing co­ordination among the various departments of the enterprise. automation and computerisation. Facilitates Administration 2. It Stimulates Independent, Creative Thinking and a Spirit of Initiative through Well-Defined Areas of Work: An ideal organizational structure based on clear-cut demarcation of authority, higher range of responsibility, discretionary freedom granted to personnel, incentives offered for specialized work etc., will certainly foster the spirit of constructive and creative approach in management. According to Dictionary-Organizational behavioral [19], organizational structure is defined as “the estab- lished pattern of relationships among the components of parts of company (The way a company is set-up). The structure of the company depends upon the structure of the organisation. Sound organisation structure stimulates creative thinking and initiative amongst organisational members by providing well defined patterns of authority. An organisational structure should be designed to clarify who is to do what takes and who is responsible for what results, to remove obstacles to performance caused by confusion and uncertainty of assignment, and to furnish decision-making and communications networks reflecting and supporting enterprise objectives. It offer ample scope for the training and development of managers e.g. Prohibited Content 3. Good organisation increases the efforts of the employees and the working facilities. The main intention of its to have sound management to take out economic efficiency in an organization. One of the wonderful things about being a coach is that I meet hundreds of executives who freely share their business and leadership challenges with me. It lays the basis for other managerial functions such as planning, direction, co-ordination and control. There is, in fact, no one type of organizational culture that is better than another. 11. Balance should be maintained in authority and responsibility through organisation structure. Organisation is, however, more than a chart. Basically the structure can be mechanistic or organic in nature or a combination of thereof. An enterprise takes advantage of the technological advancements through sound organisational structure. In India, Corporate governance is set on policy, internal controls and procedures which form the plan of dealing stakeholders and company operations such as management, employees, customers, industry bodies and government. #2. It is therefore very important for an organization to take utmost care while creating the organizational structure. Area and activities of a business grow if it has a well-knit organisation. All these factors assure stability. A sound organisation structure helps in meeting challenges and creating opportunities for growth. (9) It Ensures Co-Operation among Workers: A good organisation promotes mutual goodwill and co-operation among workers also. The size of the organisation also affect the organisational structure. Abstract. 20. Importance of organizational behavior: It is very important to study organizational behavior because it provides an understanding of why people behave as they do in organizations.In any organization, the importance of organizational behavior has tremendous necessities. It develops voluntary co-operation and best motivation of employees. Importance of Organizational structure to … It means that due importance is given to each department according to its contribution towards the achievement of the objectives. It Provides Ample Scope for Training and Development: An effective organisation facilitates delegation of authority which is an important device for training and developing the personnel. One important part of this step is to ensure that your organizational structure facilitates communication through the organization. It helps to coordinate activities of the component parts in order to facilitate the realisation of the goals of the organisation. Image Guidelines 4. ii. Well-designed and balanced organisation facilitates management and operations of the enterprise. A good organisation enhances capacity of individuals and enables them to take advantage of the skills and experiences. Helps in Optimum Utilisation of Technological Innovations: The test of a good organisation is its success in adjusting to the new and changing situation. Fine and smooth type of organizational structure can be removed by having a strong organizational.! Is more than a chart—it is the machinery of management organization based on their level,,., remuneration and promotion of employees easily if offers stimulating opportunities to at... 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