Organising Structure

Organising Structure

Organising structure is the outcome of organizing process. Whenever an organization grows in size and complexity, an adequate structure is needed. Structure clearly defines the job positions, authority, and responsibilities of different employees.

An organizational structure is defined as ‘Network of job positions, responsibilities and authority at different levels’.

Peter Drucker clearly says, ‘An organizational structure is an indispensable means; and the wrong structure will seriously impair business performance and even destroy it.’

Benefits of a good structure

1. It allows correlation and coordination among human, physical resources and enables the business to achieve its goals.
2. It ensures a smooth flow of communication and better control over the operations.
3. It provides the framework within which an organization functions while coordinating the responsibilities of individuals and departments.

The span of management, to a large extent gives shape to organizational structure. It refers to the number of subordinates that can be effectively managed by a superior. This determines the levels of management in the structure. The span of control depends upon:

· Capacity and intelligence level of managers.

· The trust of managers in their employees.

· The employees’ intelligence level.

· Nature of job.(routine or specialized)