Organizational structure and design are critical elements in ensuring an organization is set up to thrive. A poor organizational structure can cause a host of problems, including low employee morale, high staff turnover, poor work quality, lack of coordination between business units, wasted time and ineffective problem-solving. In turn, these problems can lead to missed business targets and overall lackluster performance.
But when organizations get their structure and design right, they can improve their efficiency, streamline decision-making and strengthen their culture.
A sound organizational structure aligns a company’s resources, roles and processes with the business strategy. It clarifies employees’ roles and responsibilities, so they’re more likely to perform better. And it encourages organizations to respond better to shifting market conditions and emerging threats. In turn, the organization can become more adaptable and innovative. As a result, the organization is more likely to earn higher profits and improve the quality of its goods and services. It’s also likely to have a more motivated workforce and be better prepared to weather disruption.