How organizational structure aids business performance

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Question: There is no secret that behind all efficient company is a well-built organizational structure which is tailored to company's goals and mission, also that helps managers to manage and employees understand how they fit in company. So, without proper structure of organization, company may fail to function efficiency. That's why I think the better solution is to start with orientation for correct type of organizational structure.

Musibau Akintunde and Nkam Michael Cho (2016) explored and indicated in their works that there is a relationship between specialization of work process and labor productivity which implies that organizational structure affects the behavior of employees in business firms. Relying on findings from this study, it can be said that business performance depends to a substantial extent on the organizational structure. When a clear structure exists, people perform better, tasks are divided and productivity is increased. Indeed, having a suitable organizational structure in place, one that recognizes and addresses various human and business realities of the company in question is a prerequisite for long term success. It was therefore recommended that management should critically analyze the effectiveness and efficiency of the organization by ensuring proper structures are put in place and implemented with the aim of achieving set goals. Organizations should also endeavor to have well-structured mechanisms in order to achieve laid down objectives.

Reference: Musibau Akintunde, A., Cho, N. M., Ekanem Edem Udo, u., & Ojochide Fred, P. (2016). How organizational structure aids business performance. International Journal of Research in Commerce & Management.

Reference no: EM131895711

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