As an owner of your business organization, it is vital to define your organization structure to maintain discipline and to keep things organized. Many times, an organization runs on the basis of only conducting the required tasks to accomplish the goals and objectives. However, such organizations do not have accountability and proper reporting procedures. Facts and figures for future references may not be available. Sometimes, there may be a delay in the important work tasks and activities. Employees may conduct themselves in an unorganized and unprofessional manner. Hence, to eliminate all such problems, defining the structure of your organization will ensure you more productivity and efficient working culture in the organization. In this post, we look at the five reasons to define your organizational structure.

1. Accountability

One of the biggest strengths of an organization is the accountability factor. Once you achieve accountability, all business activities and processes can be streamlined and work flows can be defined easily. It will be easy to segregate the work tasks and create separate units for the overall work. As a result, efficiency can be easily achieved and performance can be maximized. It will ensure a transparent working culture in the organization. Appropriate reports and documents will be maintained and shall be easy for future references. Hence, defining your organizational structure will bring responsibility as well as accountability.

One of the biggest strengths of an organization is the accountability factor. Once you achieve accountability, all business activities and processes can be streamlined and work flows can be defined easily. It will be easy to segregate the work tasks and create separate units for the overall work. As a result, efficiency can be easily achieved and performance can be maximized. It will ensure a transparent working culture in the organization. Appropriate reports and documents will be maintained and shall be easy for future references. Hence, defining your organizational structure will bring responsibility as well as accountability.

Once you achieve accountability, all business activities and processes can be streamlined and work flows can be defined easily

2. Dividing Roles and Responsibilities

Once you segregate work into different business units, it will be much easier to allocate your employees to different departments based on their skills and expertise. It will eventually bring more productive results as each of your employees will know what to deliver. Various departments such as finance, human resources, marketing and sales, branding and PR etc can work together in coordination and hence achieve the overall objectives of the organization. Hence, a clear picture of carrying out the work tasks will be established.

It will eventually bring more productive results as each of your employees will know what to deliver

3. Reporting Pattern

Once individual roles are well defined, the execution of business activities will be clear and comfortable. Over a period of time, it is important to conduct formal reviews so as to have knowledge of what exactly is happening in the business organization. Several deadlines have to be complied with, thus reporting and reviews are the best way to ensure it. Hence, any interruptions, risks and unwanted circumstances can be easily dealt with it. Eventually, the performance of the employees can be easily measured.

Over a period of time, it is important to conduct formal reviews so as to have knowledge of what exactly is happening in the business organization

4. Communication

Effective communication is one of the important parameters to run a successful business organization. When you structure and organize your business, the flow of communication becomes transparent and formal. Gossips, grapevines, blame games etc. are a common sight in unstructured companies. Once you define the communication etiquette for your employees, every action and behavior can be easily traceable. It will be easy to transport messages formally via email or through the common intranet portal. Moreover, it will evade unnecessary quarrels and arguments.

Once you define the communication etiquette for your employees, every action and behavior can be easily traceable

5. Efficient Management

With a good hierarchical structure of the business organization, it will be easier to build several levels of management. Thus, the overall structure will be well defined; goal oriented and will be in sync with the business objectives of the company. It will also be easy to monitor and track certain vital aspects of the company. Overall, the entire organization will be able to perform without any chaos and confusion. On the other hand, the importance of organizational structure is particularly crucial for communication. Organizational structure allows the delivery of authority. When a person starts a job, he knows from day one to whom he will report. Many companies funnel their message through department leaders. For example, the manager will discuss numerous issues with their director. The director, in turn, will discuss these questions with the vice president or upper management.

With a good hierarchical structure of the business organization, it will be easier to build several levels of management. Thus, the overall structure will be well defined; goal oriented and will be in sync with the business objectives of the company. It will also be easy to monitor and track certain vital aspects of the company. Overall, the entire organization will be able to perform without any chaos and confusion. On the other hand, the importance of organizational structure is particularly crucial for communication. Organizational structure allows the delivery of authority. When a person starts a job, he knows from day one to whom he will report. Many companies funnel their message through department leaders. For example, the manager will discuss numerous issues with their director. The director, in turn, will discuss these questions with the vice president or upper management.

With a good hierarchical structure of the business organization, it will be easier to build several levels of management

Thus, management of resources and employees will become much easier and faster. The SOP’s (standard operating procedures) for various departments can be defined keeping in view the structure of every department. There will be scalability, flexibility and transparency.

Author Bio

Nikhil Agarwal

Chief Operations Officer

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