Answered: Why is an organizational structure…

Business

Operations Management

Why is an organizational structure important? Justify your answer with five reasons

Principles of Management

OER 2019th Edition

ISBN:9780998625768

Author:OpenStax

Publisher:OpenStax

Chapter10: Organizational Structure And Change

Section10.1: Organizational Structures And Design

Problem 1CC: What is an organizational structure?

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Question

Why is an organizational structure important? Justify your answer with five reasons

Expert Solution

Step 1

Importance of organization structure:

Structure allows for better communication: Flow of information is important for any organization to run smoothly. For example, sales manager and sales executives will report to associate vice president of sales and will provide him the necessary information for smooth running of an organization.
Clear reporting relationships: It allows employees to have better understanding of their responsibilities and duties and they are aware of their reporting managers as well. It allows managers to supervise their team members and don’t interfere with other manager’s responsibilities.

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