Advantages Of Formal Business Structure

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Question 1 Define organizational structure and discuss some of the problems/challenges of keeping and running businesses structure less. Support your arguments with hypothetical examples Large or small, every organization should operate with a defined organizational structure . A structure of an organization is the base that illustrates how a business runs, and how the powers, resources, activities and tasks are distributed. It helps in putting every person working within that organization in their suitable role or position. A structure gives a business and identity and provides continuity. Organizations can be structured in many different ways, depending on their objectives, products and the services that they provide. This helps the work…show more content…
Provide relevant examples • The formal structure is a written down framework that uses a clear guidelines to organize and distribute work, roles and authority within an organization. It is mostly used by large corporations and businesses. A formal organization is usually cold and impersonal. • The informal structure is the social structure of an organization. Unlike the formal structure, it is less likely to be written down on the organizational chart. An informal structured organization is intensely personal. It is more about the social norms, interactions and relationships between its members. This structure involves the human elements such as commitment, motivation, respect and compliments which usually make it even complicated. It is about the 'chemistry' that exists between people that always affects both relationships and results. • Advantages of a formal business structure:  Formal Structure is established to achieve the objectives of the…show more content…
 Formal organizational structure lays more affirmation on work.  Organizes and focuses on achieving the goals and objectives of the organization.  Provides a framework for the allocation of responsibilities and authority. It is structure that makes it clear for employees to know who reports to whom and who does what work. In other words, a formal structure helps people to work together.  Formal business structure can align all activities and objectives of the different departments and project teams. The key to effective coordination is information. For example: how do service delivery teams share information about their customers and the areas of work they are planning to develop.  Establishes an identity for the business. For example: suppliers and customers need to be able to identify whom to contact within the business.  Makes the process of decision making easier and more efficient.  Without a structure there're possibilities for people to constantly change and set up new systems and plans in response to new situation. A structure can provide continuity. (326
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