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Companies may save money by reducing the number of similar business functions completed by multiple departments.

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Companies can use organizational structure to improve their business decision making process. Business decisions often relate to the amount of information business owners, directors or managers and gather in a timely period. Organizational structures can be designed to promote the flow of information from frontline operations to managers responsible for making business decisions. Executive level management can use organizational structure channels for sending information to managers or employees responsible for completing business functions.

[PDF] Organization Structures: Theory and Design, Analysis and Prescription (Information and

As small businesses continue to grow and expand, they may open multiple locations in local, regional or domestic economic markets. Organizational structures help business owners create a management chain to ensure all business locations operate according to the company's standard procedures.

Business owners rely on organizational structures because the owner may not be able to visit each location in a timely manner. Organizational structures often outline employee tasks and which manager is responsible for overseeing each employee. Employees may undergo a training period in which they learn the company's organizational structure.

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This process informs employees which managers can take specific decisions or where they need to send information for approval. Organizational structures also can be created with some flexibility to add new departments or employees so as not to burden one manager in the company.

Chapter 3 Organization Structure and Culture

Companies using a well-defined organizational structure should be able to spend more time focusing on customer service rather than correcting operational issues. Due to the high volume of feedback, we are unable to respond to individual comments. Sorry, but we can't respond to individual comments.


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