Organisation is one of the basic functions of management. Efficient organisation, thus, avoids all misunderstanding, confusions, conflicts, duplications and gaps. vi. Technology is a combination of tools, techniques and know- how and has a major influence on organisational structure. A sound organisational structure will give an opportunity for the staff to show their hidden talents which will help the enterprise to achieve the business goals and earn higher profits. This is the most traditional of the organizational structures that businesses use. It creates an environment where people can work effectively. Organizational structure affects both the overall behavior of firms and the situations of individuals and subunits within firms. 10. All these factors assure stability. It helps the management in several ways. Simplified organizational structure. 3. It also provides for efficient methods of selection, training and promotion of employees, further not as machines. The need and importance of organizing and organizational structure can be understood more precisely on the basis of the following points: 1. Sound organization structurecan contribute greatly to the survival continuity and stability of the enterprise. It helps in optimum use of equipment, machinery etc. How strong is the link between structure and business performance? Importance # 1. There’s an executive at the top of the heap, people responsible for each area (the director tier is for bigger businesses), and teams of people who do the work in each department.The advantage of this type of organizational structure lies in its simplicity. Essays, Research Papers and Articles on Business Management, Organisational Structure: Functional Structure and Divisional Structure, Organisation Structure: Meaning, Elements and Forms, Types of Organizational Structure | Organization |Management, Importance of Proper Coordination to Achieve Organizational Objectives, Importance of Sound Organisational Structure– Facilitates Administration, Promotes Growth and Diversification, Fosters Co-Ordination and a Few Others, Importance of Sound Organisational Structure– Enlarges Abilities, Facilitates Administration, Facilitates Growth and Diversification and a Few Others, Importance of Sound Organisational Structure – Aid To Management, Facilitates Growth of Enterprise, Stimulates Creativity, Adoption of New Technology and a Few Others, Importance of Sound Organisational Structure – Some Typical Results Provided by a Sound Organisation, Importance of Sound Organisational Structure – Helps in Optimum Utilisation of Technological Innovations, Helps in Administration, Easy Co-Ordination and a Few Others, Importance of Sound Organisational Structure – Facilitate Administration, Increase the Efficiency of Management, Adoption of New Technology and a Few Others, Importance of Sound Organisational Structure, Importance of Sound Organisational Structure – Facilitates Effective Management, Co-Ordination of Activities, Encouraging Growth, Channel of Communication and a Few Others. Creation of organisational structure also necessitates delegation of authority among various managerial positions. It facilitates administration by avoiding waste motions, overlap in work and duplication of effort. Organisation is the mechanism which determines the relationship of various persons. No one gets into any sort of wrong and misunderstood communication as in every sort of the structure, the works are somehow divided and it forms the best part of the organizational structure. Organisation provides scope to its employees for development. It ensures close co-operation and higher employee morale. The policies and procedures are laid down for the guidance of managerial personnel. Sound organisation alone assures accomplishment of objectives and strategies as per predeter­mined plans and policies. Organizational structures. As Lounsburry Fish points out-“Organisation is more than a chart, it is the mechanism through which management directly co-ordinates and controls the business. When your company starts growing in size, some of your employees may be in cross-functional teams reporting to different managers. With the growing concepts and complexities of large scale business, the need and importance of organisation has grown substantially. Clear definition of authority, responsibility relationship facilities better understanding of the objectives and the policies of the enterprise. These organizational cultures are important because they can encourage employees to work in different ways. DO NOT copy word for word. ii. 8. One of the first things you may be wondering is which type of organizational culture is best. There may be a collective office of the chief executive to direct all operating and staff departments. It means that due importance is given to each department according to its contribution towards the achievement of the objectives. Authority, and respon­sibility for operating or routine decisions can be delegated closer to the operating levels. Thus to achieve these benefits an organisational structure should be designed well with care. 7. In short, existence of a good organization structure is essential for better management. It permits management to respond in time to the changes in the environmental influences and make necessary adjustments to satisfy new demands of the society. ix. The activities of different departments are grouped together to achieve the business objectives. Helps in effective communication: Such organizational structures help in making the communication system in the company very fine and smooth. It offers ample scope for the training and development of managers,” e.g. At the same time, this chart helps to increase visibility across the entire organization. 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