Businesses, regardless of shapes and
sizes, profoundly depend on organizational structures as they define the
company’s hierarchy and set ground rules for reporting and communicating across
different departments. An effective organizational structure outline employees’
job and how it fits within the overall system.
This structuring provides an
organization with a visual representation of how it is structured and how it
can add or decrease functionalities to achieve its strategical objectives. These
structures are usually represented in shape of chart or diagram in a
hierarchical way where top management are at the top of the chart and staff
with the least power are at the bottom of it.
Organizations that lack a
well-defined organizational structure face many challenged such that employees
may get lost to whom they should report or what responsibilities are assigned
to which job title. On the other hand, having an organizational chart shall
help in increasing the efficiency of communication amongst departments and clarify
responsibilities of the organization’s staff.