Role of the organizational structure

Role of the organizational structure

Facilitating management action: when the large numbers of people work together, some cost of formal structuring is required to place them according to the needs of the organization. All of them perform various functions, which are interdependent and interrelated.

Encouraging efficiency: organization structure is the framework within which an organization functions. In this functioning, efficiency is the major criterion. Therefore, organizational members try to maximize the outputs of goods or services resulting from a given output of the goods and services from a given input of resource, or at least make a respectable showing in that direction.

Communication: organization structure provides the pathways for communication among organizational members as well as between the organization and its environment. In fact, when we say that organization structure establishes relationships, we mean that it creates reporting relationships, that is, who will communicate with whom.

Optimum use of organization resources: organization structure tries to make optimum use of organizational resource by ensuring their allocation to points where these are needed. Organization structure gives higher place to the activities, which are more important to the achievement of organization activities.

Stimulating creativity: a sound organization structure based on specialization stimulates creative thinking by providing well defined area of work with provision of development of new and improved ways of working. For creativity, it is essential that one is well conversant with the achievement or organizational structure.

Job satisfaction: organization structure is a source of satisfaction to people. Since the organization relatedness among tasks and responsibilities and among people, those who work for an organization sooner or later come to evaluate the nature of those relationships and of their own relationships to the organization and to their jobs. 

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