How organizational structure supports business aims and objectives

Some activities need special controls such as patient services in hospitals, money handling in banks, and maintenance in air transport whilst others are more efficient when there is a high degree of flexibility.

objectives of organizational structure

How structure helps Oxfam to achieve aims and objectives P4 The structure helps Oxfam to achieve its aims and objective because it will encourage everyone to contribute to the achieving targets and it will also enables the effective working team working and staff who understand their own role or contribute to Oxfam.

Different organization structures have different benefits in different situations.

How organizational structure supports business aims and objectives

A large organization has more complex decision making needs and some decision making responsibilities are likely to be devolved or decentralized. However, communication is usually more effective. For example, a matrix organization may combine both functional and divisional lines of responsibility. Using the earlier example of a company that wants to grow by acquiring new customers, the sale team is incentivized on customer retention, and therefore is self-serving rather than aligned with the business purpose. You're now subscribed to receive email updates! Horizontal or flat structures. A small organization could be paralyzed by too much specialization. They help facilitate divisions of labor, efficiency and assist in avoiding conflicts and confusion. Each person in the organization needs to have a specific role defined, including a certain amount of personal responsibility to complete tasks that further the organization's accomplishment of its goals. The advantage of a tall structure is that every role is clearly defined. Uniformity And Controls Some lines of business, such as banking and manufacturing, require require tasks to be done regularly and precisely. Structure is often linked to the type of business. Management and leadership style Often over-looked, but very important. Page 2: The structure of an organisation Organisational structure refers to how the workers within a business are organised and how they relate to each other.

Chain of Command Organizational structures, among many things, help establish who is in charge or what.

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Importance of organizational structure

This will depend on the size of the business, its aims and the way it sees itself known as its corporate culture or image. Subscribe Thanks. The main types of business structure are: Hierarchical tall structure. If two people perform unnecessarily overlapping tasks, the company is wasting labor resources. For example, it could be organised by: product - for instance, a chemical company could be split into paints and plastics function - for instance, departments of finance, marketing, human resources and operations geography - this could be by UK region or even internationally, e. It must then have the right business controls, the right flexibility, the right incentives, the right people, and the right resources. An autocratic leadership style will often result in a very different structure compared with one designed by a leader who prefers to delegate responsibility The competitive environment Organisation structures are often influenced and changed by developments in the market — for example changes in the use of distribution channels, suppliers, competitor actions Subscribe to email updates from tutor2u Business Join s of fellow Business teachers and students all getting the tutor2u Business team's latest resources and support delivered fresh in their inbox every morning. The organisation structure of a business will depend on several factors, including: Factor Explanation Size of the business Small businesses will tend to have informal or flat hierarchical structures. Everyone has a very specific role. Management and leadership style Often over-looked, but very important. The often serious downfall is its complexity — effectively with two hierarchies, and with the added complexity of tensions between the two. Mission and Goals An organization first needs a clear mission before leadership can determine the goals of the organization.

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This means any goals set by management need to line up with the organization's mission.

what are the objectives of an organization

Other organizations, such as advertising firms and innovative computer companies, emphasize creativity and innovation in their businesses.

The main types of business structure are: Hierarchical tall structure.

purpose of organizational structure

The organisational structure of a business is important because it determines: Authority and responsibility — who is responsible for whom and who is in charge? Subscribe Thanks. Flat structures often work well with skilled and motivated workers.

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The organization of the business allows all employees to rec by Nwadi Osuji on Prezi