Organizational Structure: Essential for Businesses of All Sizes - Essay Sample

Introduction

Organizational structure is essential for formal or informal use in many business organizations. It is necessary under large businesses where there is a lot of workforces, and there is a need for proper coordination and responsibility. Corporates use various organizational structures to manage employees and the functions of the organization. The organizational structure, however, depends on the level of the business activity and the firm's size and has benefits for a corporate. It helps the firm to have a purpose and efficiently work towards its objectives. The managers and shareholders have the responsibility of choosing the appropriate organization structure for a corporate and organizing the firm's business operations and functions into respective departments that undertake various business processes.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Streamline Business Operations

Organizational structure helps the firm to outline various duties to various respective employees. It is crucial for the firm because it enhances effectiveness, and each employee is accountable and responsible for the activities engaged. It also allows the management to monitor the work process effectively and focus on improving the performance in these sectors. It helps the firm to save money by grouping similar tasks that perform the same functions into one department (Rothaermel and Frank 36). It also allows the organization, especially in an iron environment, to track the metals and iron produced and other factors effectively through these departments.

Improves Decision Making

The corporate organizational structure helps the management to improve their decision making and increase the effectiveness of the iron business. The decision is enhanced by knowing the various challenges and needs of the specific departments. Strategic decision making helps the firm to manage its services and iron products and understand better the work activities in the various departments. Organizational structures also help the firm to engage in more significant opportunities that arise through the help of the departments in the organization as it has a clear view of what needs to be solved and addressed.

Improving decision making is based on the information that the management collects over a specific time and helps in the flow of data from the head of departments to the top management. The executive level of control uses the organizational structure in passing information to managers and employees and help define appropriate and practical activities. For every business, especially the iron environment, decision making contributes a lot to the success of the company and determines if it will survive in the long run. In the iron sector, the production and distribution activities are enhanced through appropriate decision making.

Operate Multiple Locations

In an iron environment, the corporate will help in operating activities of various departments under various locations. Managing various activities becomes effective because there is sufficient coordination for the firm, and the firm can track the iron process and engage in profitability opportunities. AS the firm grows, the iron environment expands, and therefore, the business owners will have to improve its efficiency in controlling all the functions of the growing company. Thus, the organizational structure makes the firm's management manage activities effectively and appropriately. It also helps the corporate to create a management chain where the company's processes can be monitored easily and ensure operations carried out according to the firm's standard procedures. It also helps the business owners to rely on the organizational structure as they will not have to visit the business sites frequently.

Improve Employee Performance

Organizational structure helps in outlining the various activities of each employee, and the management can effectively evaluate the performance of each employee. The firm also allows employees to undertake training periods for them to learn more about the organization structure. For instance, in an iron environment, the firm needs to monitor employee activities because its activities are more complex. It also helps employees to be strategic and focus on their work will knowing where to report their issues and enquiring for directions. The performance of the employees improves over time through the firm's organized structures, and it creates more flexibility as employees cannot burden the corporate.

Focus On Customer Service and Sales

In an iron environment, it becomes easy for the corporate to focus on customer services and the sale. Through the aligned departments, employees can evaluate what the customer wants and helps the organization focus on the customer's needs. In an iron environment, it helps the firm to assess its activities effectively. Through the well-defined organizational structures, the corporate spend more time focusing on the services of the customer and creating satisfaction rather than focusing on the overall operational issues (Earnhart, Dietrich, and Mark 18). It helps the management to answer customer inquiries and address the feedback they raise on the firm's goods and services.

In the iron industry, organizational structure helps the firm to focus on creating revenue and improving sales through the business operations undertaken in meeting the customers' needs and wants. Organizational structures help the firm to increase productivity and focus entirely on the customer, and through iron manufacturing, the firm will help reduce ineffective measures and save costs through each employee following a clearly outlined policy.

Creates the Line of Authority and the Division of Work

The division of labor helps the firm to divide its activities into smaller active groups that perform the same function and improves the management to handle these groups with ease and efficiency. A lot of responsibilities under one person will create chaos for the firm, and the services rendered will not be sufficient to meet the firm's goals and objectives. Sharing responsibilities also waste resources and time. Therefore, functions of the firm like iron furnishing will not be completed in time (Worley, June and Toni 46). Through organizational structures, each person will evaluate personal responsibility and work towards the desired goal while ensuring effectiveness in work undertaken.

It also creates a chain of command for the firm; for instance, the management will take full control in running the firm through using the head of departments to address issues and ensure effective services are carried out. It is essential as it establishes who is in control, and the services carried by the employees will be based on certain decisions of specific individuals. In a corporate iron environment, it allows the formal structures of authority relationship in which each person performs and responsibility for undertaking each task in each practice and that they are legitimized. It helps the firm to vest position on impersonal authority rather than on an individual basis and reflected in the iron environment organizational structure.

Allows Span of Control and the Flow of Authority

Through having an organizational structure in an iron environment, there is a flow of power where all employees work towards attaining a specific goal and accounts for the performance of the organization. Organizational structures are also crucial for the span of control, where subordinates can be controlled and directed expertly. Therefore it is easy in an iron environment to control activities through coordinating tasks to each individual and ensuring theta the iron industry serves to maintain the environment and undertakes corporate social responsibility. The effectiveness of the leadership role is that it will create an impact over time where decisions will be useful and consider affordable cost structures.

Promotes Upward Mobility

Organizational structure prepares employees for qualified top management roles and helps them to create an influential culture for the organization and becomes sufficient in controlling and execute services to maintaining the strong managerial core. Departments through the organizational structure will work together on a plan and help the firm meets its objective. Upward mobility is essential in an iron environment where activities undertake needs teamwork and efficient services. It also allows employees to identify and understand the function of each division and within an operational framework, perform the right thing through following specific rules and procedures of the firm.

Conclusion

Organizational structures are of a beneficial value when decisions form the top management are valid and reliable in the iron industry. It is vital in creating a friendlier environment and ease processes of the firm through creating coordination, responsibility, and coordination. Organization structure is essential because it unifies the goal of the firm, promotes upward mobility, enhances and eases strategic planning, improves employees' performance, and refines the decision-making process, among others. Organizational structure in a corporate environment is essential to create sustainability and effectiveness. Many corporations are successful because of well-defined organizational structures.

Works Cited

Earnhart, Dietrich, and J. Mark Leonard. "Environmental audits and signaling: The role of firm organizational structure." Resource and Energy Economics 44 (2016): pp1-22. Retrieved from https://www.sciencedirect.com/science/article/pii/S0928765516000038

Rothaermel, Frank T. Strategic management. New York, NY: McGraw-Hill Education, 2017: PP 36. Retrieved from https://owet.pw/hosan.pdf

Worley, June M., and Toni L. Doolen. "Organizational structure, employee problem solving, and lean implementation." International Journal of Lean Six Sigma 6.1 (2015): PP 39-58. Retrieved from https://www.emeraldinsight.com/doi/abs/10.1108/IJLSS-12-2013-0058