Good Organization Structure
The features of a good organization structure are:
Simplicity
An organization structure should be simple. The
concept of simplicity implies that various organizational relations should be
kept to the minimum. Every person in the organization should be clear about to
whom he has to consult on a particular matter. Too many levels, too many
communication channels, multiplicity of commands or too many committees create
more problems than solving them.
Flexibility
An organization structure should be flexible enough so
that changes can be incorporated whenever there is a need. The structure should
be designed not only for the present but also for the future needs. There may
be a need for incorporating changes in organization structure. Changes can be
incorporated easily, if the structure if flexible. Thus, a flexible structure
provides opportunity to incorporate changes whenever needed without adversely
affecting other parts.
Line
of Authority
There should be clear lines of authority running from
top to bottom or in horizontal directions. The concept of clear line of
authority implies that one should be clear about what he is expected to achieve
or contribute and what relationships should be maintained by him in his
official level.
Ultimate
Responsibility
There is always the concept of ultimate responsibility
which suggests that although a superior manager assigns some of the work to his
subordinates, he is ultimately responsible for performance of total work. Thus,
he is responsible for his own work as well as for the work performed by his
subordinates. In this concept no superior can absolve himself from the
responsibility for the non-performance of work by his subordinates.
Delegation
of Authority
There should be proper and adequate delegation of
authority. Responsibility cannot be delegated without proper authority to the
delegate. He can discharge his responsibility properly if he has commensurate
authority. A common problem in the organizational life is that managers often
fail to delegate adequate authority and suffer with various problems. The
organizational structure shall be such that it should be amenable for delegation.
Managerial
Levels
In an organization there should be minimum managerial
levels. Greater the number of managerial levels longer is the line of
communication in the chain of command and the communication has to travel along
the line creating problems of delay and distortion. Though it may not be
possible to suggest how many managerial levels should be kept by an
organization as the number of levels is affected by so many variables, the
principle of minimum levels hold good.
Unity
of Direction and Command
It is no good if direction and command are given by
more than one person having authority. Sometimes, the structure, if defective
may lead to multiplicity of commands, making the subordinate in a fix as to
whom he is answerable. If there is a well grouped and arranged organizational
structure, it may lead to desirable unity of command.
Proper
emphasis on staff
Line functions should be
separated from staff functions and adequate emphasis should be placed on
important staff activities. This is important particularly in large
organizations. The line and staff activities are required because both serve
different objectives in the organization. A line activity is that which serves
the organizational objectives directly. Production activities, marketing
activities etc can be considered as good examples for the line activity. On the
other hand, contributions of staff activities are indirect, that is, they help
in carrying out the line activities to achieve organizational objectives.
Personnel, accounting etc., are staff activities.