Organizational structure is the pattern or mechanism of organization hierarchy based on an authority responsibility relationship. In addition, it is more than a chart and foundation of management. It is the mechanism through which management controls the business. Now, let us check out the advantages and disadvantages of organizational structure to know more about it.
Advantages of organizational structure:
- Senior management free to concentrate on strategy.
- Better local decisions due to local expertise.
- Improved motivation due to improved preparation and career paths.
- It provided good specialization and accuracy.
- Organizational structure provides better efficiency and supervision.
- Quicker responses or flexibility, due to a smaller chain of command.
- Productivity is high if the structure is good.
- The activities of individuals or groups will become more stable, rational, and predictable.
- The most effective way will be to make use of available resources.
- An organization may make the treatment of the individual workers more democratic because favouritism and patronage are reduced.
- The organization structure enables them to get to know people. Thus, helping them and supporting each other to connect much more easily.
- Directional and organizational objectives and strategies must be clearly identified and the resources committed to achieving them.
- Individuals will be selected based on the capacity to perform the tasks expected. Job task simplification and specialization is possible in a more effective way.
- The organizational structure shows a clear reporting structure. In addition, provides employees to know who to report to, who to contact when there is a problem that needs to be resolved.
Disadvantages of organizational structure:
- Loss of control by senior management.
- Not showing informal networks is one of the biggest disadvantages of organizational structure.
- Dysfunctional decisions due to lack of objective congruence.
- Poor decisions made by inexperienced managers. In addition, poor intradepartmental coordination.
- High training costs.
- Lack of control.
- Duplication of roles within the organizations.
- Extra costs in obtaining information.
- Lack of team orientation.
- Organizations tend to fail to account for significant human differences in the workforce.
- As regards time and human dignity, they are too difficult to enforce corporate laws and regulations.
- Workers may become less likely to perform duties that are not officially part of their original assignment.
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