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The Advantages of an Effective Organizational Structure


15 September 2018

The Advantages of an Effective Organizational Structure

There are many different structures that organizations can adopt, depending upon the type of organization, a well structured organization has many benefits.

Some of the beneficial outcomes of organizational structures are:


A good organizational structure facilitates attainment of objectives:

It has a built-in system of “checks and balances” so that the progress towards the attainment of objectives is evaluated along the way so that any required adjustments can be made and any new decisions required can be taken.


In a good organizational structure, the conflicts between individuals are kept to a minimum:

Since each person is assigned a particular job to perform, the responsibility of performing that job rests solely with him. It results in traceability of outcomes and the work interdependency of that particular task is reduced to a minimum.


A good organizational structure eliminates duplication of work:

Duplication exists when work distribution is not clearly identified and the work is performed in a haphazard and disorganized way. Since a good organizational structure requires that the duties be clearly defined and assigned, such duplication of work is eliminated.


A good organizational structure facilitates promotions of personnel:

Since the organizational structure clearly pinpoints the positions of individuals relative to one another, it is easier to know as to which level a person has reached at any given time in the organizational hierarchy.


A good organizational structure aids in wage and salary administration:

A fair and equitable wage and salary schedule is based upon the premise that the jobs with similar requirements should have similar benefits.


A well-structured organization provides a sound basis for effective planning:

Since the goals are clearly established and resources clearly identified, both short term as well as strategic planning becomes more focused and realistic and such planning contains the provision to permit changes to be made in the right direction including expansion and contraction of facilities, operations and activities when it becomes necessary.


A well-structured organization results in increased cooperation and a sense of pride among members of the organization:

An employee is given sufficient freedom within the domain of his responsibility and his authority. Since the authority and the extent of exercise of such authority is known, it develops a sense of independence among employees which in turn is highly morale boosting.


A good organizational structure encourages creativity:

Because of a sense of belonging and high morale that a well-structured organization develops among employees and also because of clear-cut accountability, recognition of skill and appreciation for their contribution towards organizational growth, the employees develop their own initiative and a spirit of innovation and creativity.


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