Good Organizational Structure, Development in Organizations

Organizational Structure

Table of Contents

What is Organization structure?

Organizational structure is the foundation for the development of any organization. Without the proper organization, we can’t expect the growth in any organization. Even in SME’s, we require a well-defined structure. Organizational structure is the chain of hierarchy, which divides entire employees of an organization based on their level, roles, and responsibilities. It defines the clarity in between employees to report whom and also employees are aware of what the employer expects from them so that they can deliver their best to meet the expectations. It reduces the rate of confusion and organization runs in a smooth manner.

What are the Functions of Organizational Structure?


It defines every employee of an organization to their reporting head. Like associates report to the manager, manager to the director and director of the business owner. This will differ from organization to organization based on their company designs, size, and their work culture.


Organization structure divides the whole employees into a team based on their type of department, geographical area, projects or other who are working for achieving the same goal and have their own well defined responsibilities to execute and they get a better understanding to help each other with understanding strengths and weakness.

Decision Making:

In any organization, generally, employees confront with the situations where they need to discuss the issues and need for the solution for that they require a decision maker. How to get the solution? Who’s a good decision maker? A well-defined organization structure helps to solve these issues. You can get a clear idea who’s a better decision maker for handling a specific situation. No need to waste time in taking the issue with the wrong person and execute the same, which affects the organizational growth.

Advancement Potential:

A well-defined organization helps the employees to know which is the next level of their growth within an organization. Also, they are clear with the skills or experience expected for moving to the next level an employee growth will eventually lead to the organization grows.

Why should you develop an organization structure?

  • It gives a clear idea to all how to proceed to the next task to execute.
  • It binds all team members with a common goal to achieve, which increases the mutual understanding among employees.
  • Structure in any organization is inevitable.

When should you develop a structure for your organization?

Organization structure development starts from the commencing of the company and it must be flexible to make changes with the advancement in the technology. It must be done in the presence and the decisions of all the committee members, trustees, Coordinating Council, Task forces, Support organizations, Grand makers and Partner organizations.

What are the benefits of designing an organizational structure?

  • A good organizational structure facilitates achievement of the objective of every individual through proper coordination of all activities.
  • Reduces the overall conflicts between the individuals and team members.
  • It removes duplication and overlapping of work.
  • It decreases the likelihood of runarounds.
  • It facilitates promotions of personnel.
  • It helps in wage and salary administration.
  • Communication is easier at every level of organizational structure.
  • A proper organization structure provides a sound basis for effective planning.
  • It encourages creativity
  • It results in improved cooperation and a sense of pride among members of the organization.
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