Organizational structure aids in resource and personnel management. Effective organizational structure helps increase business productivity, according to Reference for Business, a business encyclopedia. Organizational structure helps improve personnel management and business productivity by identifying and meeting personnel needs.
In regards to personnel management, organizational structure identifies roles needed so a business can function. Tasks included in organizational structure include categorizing required roles into departments and establishing authority figures. For example, a clothing store might group workers into men’s, women’s, girls’, and boys’ departments and assign a department supervisor to each.
Organizational structure enables managers to delegate responsibilities, giving the managers more time to make sure everything functions effectively as a whole. If problems occur, managers can more easily diagnose the issues and implement solutions.
Wiley-Blackwell, a scholarly publisher, notes that feedback from workers can help create an effective organizational structure. Quality circles, meetings held by small groups within departments, is one way workers can share feedback. An individual from the meeting enters information talked about into a report and gives the report to management.