An organization is a collection of people, systems and procedures which are put together to earn profits. In order to better manage the huge resource base and assets organizations need to be in some sort of organizational structure so that it can be formed into some form and clear lines are defined in order to control and get the productive use of organization's resources.
Sometimes this question arises as that as to why an organization needs to have a structure? It is necessary because it offers following advantages to have an structure in organization rather than leaving it as a haphazardly managed organization with no clear structure.
Advantages of organization structure are:
1) More easy control over the resources because with it resources can be rationed and allocated to different units to use them to their most productive uses at micro level.
2) Clearly defined reporting lines make it easy for employees to know to whom to report.
3) Reduce redundancies by eliminating extra and unproductive processes.
4) Stream line processes by giving it more focus and adoptive nature.
5) It help to reduce costs because the controlling of various cost control centers are controlled at micro level.
6) It gives focus and direction to an organization.
Sometimes this question arises as that as to why an organization needs to have a structure? It is necessary because it offers following advantages to have an structure in organization rather than leaving it as a haphazardly managed organization with no clear structure.
Advantages of organization structure are:
1) More easy control over the resources because with it resources can be rationed and allocated to different units to use them to their most productive uses at micro level.
2) Clearly defined reporting lines make it easy for employees to know to whom to report.
3) Reduce redundancies by eliminating extra and unproductive processes.
4) Stream line processes by giving it more focus and adoptive nature.
5) It help to reduce costs because the controlling of various cost control centers are controlled at micro level.
6) It gives focus and direction to an organization.
