In modern economies, the way an organization arranges hierarchical levels often determines its operational success or failure. The staff organization structure plays a key role not only internally, but it also affects how the external world views the firm.
Staff organization structure refers to the hierarchical arrangements that a company puts into place to ensure that personnel adeptly perform operating activities, according to the United Nations' Food and Agriculture Organization (FAO). The structure typically assigns tasks to workers based on business unit, department and segment needs.
An organization needs to establish a sound personnel structure strategy to successfully reach operating objectives. Without an adequate structure, a company may lack the resources to effectively compete in the marketplace and increase corporate profits.
FAO indicates that an effective staff organization structure draws on hierarchical arrangements at the business unit and departmental levels. Business unit heads typically oversee the work of department chiefs who in turn coordinate segment-level activities.
Personnel involved in managing a company's staff organization structure generally have effective leadership and communication skills along with time-management aptitude.