The Characteristics And Importance Of Organizational Structures In A Business

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Organizational structures are an important part of the business world. Without structure, businesses would find it challenging to assign responsibilities to the proper employees. Encyclopedia.com states “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. 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 (www.encyclopedia.com).” In order for a business to run smoothly, it is important to organize sales activities into specific structures for two reasons. One reason for organizational structure is that it is the roadmap to success for the company. Delegating responsibilities to employees will give them a clear understanding of their roles to achieve goals and increase revenue. Lastly, communication is a critical factor for organizational structure. Communication enables the line of authority in the company. For example, when a new hire begins a position. Who will they report to if there isn’t a line of authority? The disadvantage to the current structure is restricted and the sales representatives were not given a realistic sales quota to complete. There is an advantage and disadvantage to the geographical structure in a business. In the textbook Sales Management: Shaping Future Sales Leaders written by Tanner, Honeycutt, Erffmeyer states that “firms
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