Top 7 Benefits of Organizational Structures !!

While there are many different structures that organizations can adopt, depending upon the type of organization including whether it is a service organization or a manufacturing organization, a well structured organization has many benefits.

1.   Proper Coordination:

It has a built-in system of “checks and balances” so that the progress towards the attainment of objectives is evaluated along the way so that any required adjustments can be made and any new decisions required can be taken

2.   Easier Communication:

Since the lines of communication and flow of authority are clearly identified on the organizational chart, the inter­communication is both clearer and easier and it eliminates ambiguity.

 3.   Minimum Conflicts:

Since each person is assigned a particular job to perform, the responsibility of performing that job rests solely with him. It results in traceability of outcomes and the work interdependency of that particular task is reduced to a minimum.

4.   Eliminates overlapping and duplication of work:

Duplication exists when work distribution is not clearly identified and the work is performed in a haphazard and disorganized way. Since a good organizational structure requires that the duties be clearly defined and assigned, such duplication of work is eliminated.

5.   Decreases likelihood of “run-arounds:”

The run-arounds occur when we do not know who is responsible for what and we are not sent to the right people in the first instance for getting some work done. However, in a well-organized company where the responsibilities are clearly established, this does not occur.

6.   Facilitates promotions of personnel:

Since the organizational chart clearly pinpoints the positions of individuals relative to one another, it is easier to know as to which level a person has reached at any given time in the organizational hierarchy. Furthermore since each job is well described in terms of qualifications and duties, the promotional stages can be more clearly established.

7.   Effective Planning:

Since the goals are clearly established and resources clearly identified, both short term as well as strategic planning becomes more focused and realistic and such planning contains the provision to permit changes to be made in the right direction including expansion and contraction of facilities, operations and activities when it becomes necessary.