Effectiveness, Efficiency and Organizational Structure

by George N. Root III; Updated September 26, 2017

The policies and methods by which you get business done form the structure of your organization. When you create a structure within your organization, you add a level of effectiveness and efficiency to your operation that can increase productivity. Understanding the ways that an organizational structure assists in effectiveness and efficiency can help determine the benefits corporate planning.

Communication

A defined corporate structure can increase the effectiveness of communication within the company. A well-defined communication network can ensure that every person who needs to see a piece of information has access to it in time to make an appropriate decision. In the case of a company emergency, utilizing the communication portion of an organization's structure can make sure important data is transferred to the decision makers and that they can make key decisions to help keep the company competitive.

Accounting

An efficient accounting system is essential to the cost-effectiveness of a business. When the accounts receivable system is streamlined and in working order, customers are credited with paying their bills and allowed to continue to buy from the company. Collections actions can be accurately applied to customers who delay payment on their bills. Using an efficient accounting system also allows the company to have multiple ways for customers to order product, including in person at the showroom, over the phone and from the Internet.

Customer Service

Customer service is the branch of your organization charged with finding the balance between retaining customers and acting in the company's best interest. A well-defined organizational structure can allow important customer service issues to escalate immediately while giving individual customer service representatives the autonomy to take care of minor customer issues on their own. An efficient corporate structure prevents customer service issues from getting bounced from one person to another and then possibly lost. This efficiency will help increase customer retention and preserve repeat business.

Growth

Creating a controlled growth within any company requires an effective corporate structure. As the company grows, the structure needs to be revised continually to accommodate new departments within the company and to create a controlled environment for employee training and advancement. The growth of the company can get out of control if it is not maintained by an effective corporate structure.

About the Author

George N. Root III began writing professionally in 1985. His publishing credits include a weekly column in the "Lockport Union Sun and Journal" along with the "Spectrum," the "Niagara Falls Gazette," "Tonawanda News," "Watertown Daily News" and the "Buffalo News." Root has a Bachelor of Arts in English from the State University of New York, Buffalo.