What are the benefits of organizational structures?

Drawing up an organizational chart if your company doesn’t already have one is a simple way to analyze the company structure. Identify the positions in the company hierarchy and give each one a block on the chart. Then connect the positions, showing who reports to whom and which position supervises others.

Organizational structure is the method by which work flows through an organization. It allows groups to work together within their individual functions to manage tasks.

• Faster decision making.
• Multiple business locations.
• Improved operating efficiency.
• Greater employee performance.
• Eliminates duplication of work.
• Reduced employee conflict.
• Better communication.

According to the results from the study, it shows that organization structure has an impact on the employee performance; a poor organized organization structure means that there will be low productivity, less delegation of work, no incentives provided and centralized decisions.

Organizational structure is a way or method by which. organizational activities are divided, organized and coordinated. The organizations created the structures to coordinate the. activities of work factors and control the member performance. Organizational structure is shown in organizational chart.

The research results showed that organizational structure has a direct and positive relationship with ineffective communication. In other words with increasing centralization, complexity and formality communication (diagonal ,horizontal, upward and downward) in different levels of organization become ineffective.

A small business can use one of three primary organization structure options: functional, divisional or matrix. Essentially, the organizational structure creates a business hierarchy to increase the efficiency and effectiveness of the business operations.

5 Common Business Organizational Structures

• Matrix Organizational Structure. A matrix structure provides for reporting levels both horizontally as well as vertically.
• Functional Organizational Structure.
• Product Organizational Structure.
• Customer Organizational Structure.
• Geographic Organizational Structure.

Most small businesses start as limited liability companies (LLCs). An LLC is most likely the best structure for your business if:

• you don’t need to attract investors.
• you plan to invest most of your profit back into the business each year.
• you would benefit most from an easy to maintain business structure.

If Both Spouses Are Owners Your options are: Partnership, with each spouse having a partnership share. Limited Liability Company (LLC), with each spouse having a membership share, or. Corporation (with the possibility of electing to be an S corporation)., and each spouse as a shareholder.