Discuss the Flat Organization As It Relates to the Organizational Structure. Purpose of Organizing • 1. An organizational structure is not something you can see unless you're looking at an organizational chart, which requires frequent updates in many companies. The purpose of having an organisational structure is that it determines how the employees within the organisation are coordinated and controlled. According to Peter Drucker, organisational structure is an indispensable means, and a wrong structure will seriously impair business performance and may even destroy it. Structure has less importance in organizations with a more flexible approach to defining roles. What is not a purpose of an organisational structure? What Is the Most Widely Used Approach to Organizational Structure in U.S. This site is using cookies under cookie policy. An organizational chart is the graphic used to visually depict the organizational structure that conveys how communication and authority happen within companies.It is easy to dismiss the organizational structure's importance and say that it is only relevant to large companies, but failing to organize a business leads to frustrations down the road. There are various aims as well as the objectives of joint stock company. The concept of alignment of resources is crucial to understanding business structure. Any employee working at the NASA Space Center in the 1960s knew that that organization’s common purpose was to put a man on the moon. A common purpose unifies employees and helps them understand the organization’s direction. Cloudflare Ray ID: 5ecd694e2cca233d Members of an organization create it just to achieve their common aims. Another way to prevent getting this page in the future is to use Privacy Pass. Organizational structure has more importance to understanding relationships among employees and organizational units in organizations with lots of separation between business functions. What Are the Differences Between Flat & Hierarchical Organizations? Each year, a business owner aligns resources, such as money and people, to priorities. When people divide responsibilities and coordinate with each other, it becomes easy to function. Join now. Audra Bianca has been writing professionally since 2007, with her work covering a variety of subjects and appearing on various websites. You may need to download version 2.0 now from the Chrome Web Store. Log in. Answered In a small business, the owner has a chance to personally facilitate communication and other kinds of collaboration between employees with different functions and make changes to the structure if needed. Performance & security by Cloudflare, Please complete the security check to access. Nowadays, this may still occur, but business owners may create a structure according to market conditions, product or service lines or the arrangements of competitors. Employees who understand their reporting relationships in an organizational structure will build business processes, or work routines, around them. An organization with a clear purpose or mission is one that is easy to understand and manage. For example, a sales department and a customer retention department should share information to understand what customers want and what needs are not being met. Her favorite audiences to write for are small-business owners and job searchers. Organisational structure must be so designed as to make possible the attainment of the objectives of the business for five, ten or fifteen years hence. • The main objective is to expand the activities of the company with he help of shareholders. This is basically the entire purpose of an organization structure. It also creates visibility into how the organisation communicates through the different levels of management by its employees. Included with the common purpose would be the business and company strategy, mission state… Click here to get an answer to your question ️ What is not a purpose of an organisational structure? An organizational structure is not an end but rather the means to an end. Your IP: 185.17.106.131 The way that people's roles align in relationship to one another dictates their functions as individual employees. All rights reserved. The old way was to make allocations by department; for example, a sales department needs four sales personnel of equal rank and one manager. A structure directs a group of people to fulfill defined roles so their combined actions will help the business achieve its objectives. Business organizations change their structure to stay competitive in a fluctuating market. Log in. If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. An organizational structure is not something you can see unless you're looking at an organizational chart, which requires frequent updates in many companies. However, the structure itself can lead to problems, such as communication. Explain the Hybrid Organization Structure, Harvard Business Review Blog Network: The Importance of Organizational Design and Structure, MindTools: Organization Design--Aligning Organizational Structure with Business Goals, Factors to Consider When Designing an Organization Structure. Join now. What happens sometimes, however, is that the old structure stays hidden in the new organizational structure. This can be difficult for employees who worked in the company before and after the change. She holds a Bachelor of Arts in history and a Master of Public Administration from a Florida public university. Arifan8214 Arifan8214 20.07.2018 Business Studies Secondary School +13 pts. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. You can specify conditions of storing and accessing cookies in your browser. A business owner decides early on whether the way employee roles are assigned will be formal to fit a complex structure, or if it will be organic, with much latitude given to which responsibilities employees perform. Ask your question. Business owners must understand the purpose of their business structure so they can explain it to their employees and lead them through changes in organizational structure, when needed; it doesn't matter whether they are in a start-up phase or just operating the business.
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