The Importance of Structure in Meeting the Goals of a Firm

Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. When a work group is very small and face-to-face communication is frequent, formal structure may be unnecessary, but in a larger organization decisions have to be made about the delegation of various tasks. Thus, procedures are established that assign responsibilities for various functions. It is these decisions that determine the organizational structure. Related Information can be found at http://www.referenceforbusiness.com/management. In essence, it refers to the formal or informal relationships between people in an organization. The business strategy selected by management determines the structure most appropriate to the organization. According to David B. Balkin, Robert L. Cardy and Luis R. Gomez-Mejia, 2012, An organization develops a business strategy by establishing a set of long-term goals based on the analysis of environmental opportunities and threats and the realistic appraisal of how the business can arrange its assets in order to compete most effectively. It is very important for one such structure to be established in any firm as this may rely heavily on the survival of any business and ultimately the accomplishment of the organization 's goal. It is also important that these structures are monitored as influences such as rapid growth and the change in organizational culture may shift the dimension of the organizational structure so as important as it is to implement, it is equally important for it to be monitored as to be readily flexible to accommodate change if and when necessary. Structures allow for the chain of command and specifies who report to whom and who does what. It depicts the skeletal body of the organization for clarity, uniformity, accountability and also responsibilities. Department leaders are in charge of delegating tasks and projects to subordinates so the department can

References: Balkin, D., Cardy, R., & Gomez-Mejia, L. (2012). Managing Human Resources (7th ed.) Pearson Education, Inc., publishing as Prentice Hall. DuBrin, A., (2003). Essentials of Business Management (6th ed.) The Importance of Organizational Structure by Rick Suttle, Demand Media in Share retrieved April 22, 2012. http://www.smallbusiness.chron.com/structure http://www.referenceforbusiness.com/management