Importance of Good Organisational Structure


Structure serves as basis for orchestrating organisational activities. Organisations shall understand importance of structure in carrying out business operations and its relation to strategy. Above discussion shows that relationship between the two is evolutionary and is affected by change in organisation over the years, as chandler believed strategy affected structure and carried his study in 1960, Mintzberg in late 70’s said structure can have its affect on strategy.

Designing structure that fits company needs is a major challenge.

Each structure has its advantages and disadvantages on how it contributes to its effectiveness, and organisation has to mull over the decision on what structures it follows, plus the autonomy organisations provide to its employees for purpose of decision making. Organisation can choose from variety of structure like, functional, divisional, project teams, holding companies and matrix structure. Failure to choose an effective structure has it consequences on organisation as it will not only affect health of the organisation it will also affect employees loyalty, motivation at work and job satisfaction, thus organisation when deciding for designing structure needs to take care of all aspects that relates to people and working of organisation.

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