A formal organization structure is required, since a large number of people are associated in achieving organizational objectives.
Formal
Organization Structure
A formal organization
structure is required, since a large number of people are associated in achieving organizational
objectives. All of them perform various functions which are interdependent and
interrelated. There should be a plan for systematic completion of the work of
each specialized job so that the total activities accomplish common objectives.
Though an organization structure is required primarily to overcome the
limitations of individuals, it serves many other purposes too. The advantages
of a good organizational structure are as follows:
Facilitating
Management
A properly designed organization facilitates both
management and operation of the enterprise. On the other hand inadequate and
faulty structure would discourage and hamper effective management. Management
work takes place with certainty and continuity only if appropriate functional
groups are provided to help managers. The grouping and arrangement of
activities directly affect operating results. Successful managers always try to
develop good structure. In many enterprises, a separate unit for organization
analysis, is created which looks after authority and responsibility, delegation,
communication, control and coordination.
Facilitating
growth
The organizational structure is the framework within
which an enterprise grows. This requires a flexible structure where changes may
be incorporated. With the increase in size, either the
quantity of same work increases, or diversification takes place: a sound
structure facilitates growth by increasing the efficiency.
Full
utilization of technological improvement
Many new technological improvements are being made
every day and the organization cannot remain aloof to these improvements. The
advantages can be best realised by having a suitable organization structure
which can quickly adjust to the new technology.
Encouragement
to personnel
Psychological satisfaction to individuals in the
organization is needed. An individual contributes his best when his
satisfaction is the most. Psychological satisfaction is largely derived from
his work, his relationships, and his work environment. Psychological
satisfaction could be provided through good organization structure. A good
organization structure also develops provisions for training and promotional
avenues.
Creativity
stimulation
A sound organization based on specialization,
stimulates creative thinking and initiatives by providing well defined area of
work with provision of development of new and improved ways of working
Tags : Human Resources Management - Organization of HRM
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