Jul 12, 2017
Business Studies
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Business Studies INSTRUCTIONS:
Organizational Structure
Organizational Structure refers to how set of administrative units and activities are directed in the organization to achieve the organizational goals (Bateman, & Scott, 2011 p. 66). It provides linkages between different departments of the organization, as well as the distribution between the responsibilities and rights. Organizational structure manifests itself through division of labor, the specialized units of the organization and the hierarchical positions. These elements of organizational structure are necessary for an effective organization because they provide an internal stability to the company and create an order in how work is done as well as how the resources would be used.
CONTENT:
Business Studies Name Course Professor Institution Date of Submission: Business Studies Introduction An organizational structure can be described as a hierarchical arrangement of lines of power, channels of communication, rights, and obligations in a business (Shtub and Karni, 2009). In simple terms, an organizational structure decides how roles and obligations are allotted, controlled, and facilitated, and how information streams between the various levels of administration. An organizational structure relies upon the business’ strategies and objectives. Problems of running a business without an organizational structure Maintaining and running a business without an organizational structure can prompt miscommunication because employees will not be certain of who needs information or where to send critical messages. For instance, a business manager at a business may come up with a sign up form for new or existing customers to help new customers begin requesting for goods with less effort. He/she might get the approval from the owner of the business. In case the business’ accountant is not aware of this form, he/she would not be able to know how to qualify new clients for credit or receipt them appropriately. This could result
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