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Introduction to Organisation and Its Importance

Last updated date: 17th Apr 2024
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Importance of Organisational Structure

Organisational structure is the backbone of every company. The primary aim of every company is to increase its profit margin without wasting too many resources. Organisational structure fulfills this aspect of a firm. It brings a systematic approach to the workflow. The aim here is to streamline the activities of a company in an efficient way that eliminates chaos, and increases productivity. The concept of organisation helps businesses to segregate tasks according to the merit of the workforce, distribute the workload, and to assign or map resources accordingly. Moreover, the implementation of this structure also includes defining roles.  

Importance of Organization

Organization brings adaptability to a company. It paves the way for a smooth transition of work from one end to another and proper allocation of the workforce in a dynamic environment. Therefore, a comprehensive approach to an organizational structure can provide different pathways in front of the management to reach its goals. The importance of this structure is discussed below.

  1. Clarity in the Workplace

The introduction of the concept of organisation brings clarity to a company. It promotes accountability by establishing a relationship among employees. It also establishes a chain of command. In this way, it puts in place a clear flow of instructions and information clarifying the hierarchy in a firm.

  1. Focus on Specialization

Another major importance of business organisation is that it focuses on specialization. It means employees who are good at something will receive work in their area of expertise, repeatedly. A significant benefit of this method is that an employee working in a particular area for a long time attains invaluable knowledge and experience, which ultimately increases productivity. 

  1. Utilisation of Resources

The introduction of organisation helps businesses to optimally utilize their resources, both financial and human. The distribution of work, and keeping track of its completion and delivery is a part of this process. It further helps in curbing the waste of valuable resources.

  1. Facilitates Administration

A well-designed organizational structure defines and maintains a balance between management and employees. It increases the productivity of management and motivates employees to perform better. Moreover, this format segregates the work and defines job roles, which siphons off the delays and make individuals responsible for their work.

  1. Personal Growth

The importance of organising in management further proceeds to personal development. Delegation of labour and assigning work to the people who provide the best results reflect on their performance in the long run. Such employees gather expertise in that particular work and find ways to save more time.

On the other hand, the concept of an organisation also includes training and development of resources. It helps the firm to gather a skilled workforce that will increase productivity further and generate more revenue.

Additionally, this process also saves companies from an administrative crisis as well. In any such instances, companies will have personnel ready to step up and take charge of a situation. In a nutshell, the introduction of organizational structure creates leaders for tomorrow.

  1. Encourages Creativity

The delegation of work and defined job roles stimulates creativity among employees. This structural approach gives enough freedom to a workforce to find new ways to do a job more efficiently, also, improve the end result as well.

  1. Brings Stability

Effective leadership, cooperation, and communication bring stability in the workplace, and the concept of an organisation focuses on that. Additionally, this leaves a positive effect on employee satisfaction that reduces employee turnover.

Steps in the Introduction of the Organization

Here are the steps that ensure the effective implementation of organizational structure in a firm.

  1. Identification and Segregation

The first step of introducing organizational structure is to identify work and resources. It finds the perfect workforce for a particular job and then segregates it further. The idea here is to share and lower the burden of work, corroborating accuracy, and eliminating duplication.

  1. Finding or Creating Departments

Since the identification and distribution of work are complete, the next logical step here is to find groups that can perform similar activities. This helps in easy management of work and improvement of the final product.

  1. Assignment of Work

After the groups, the focus shifts to the assignment of work among employees, since the structure is already in place, everyone is aware of their duties and responsibilities. A point to note during the distribution of work is that employees must work on their preferred subjects to increase productivity and gain specialization.

  1. Establishing a Chain of Command

The final process is to establish a chain of command. It streamlines the workflow further and ensures optimum utilization of resources.

The concept of organisation is not new, it has existed for centuries. The significance of this concept mentioned above further speaks on its behalf and why implementing it in a business is important to stimulate its prosperity.

Vedantu is a leading e-learning platform that allows students to learn more about this concept. Additionally, the availability of online classes and doubt clearing sessions further organize the final preparation for them and help them to secure better grades. For more information on this topic, download the Vedantu app now.

FAQs on Introduction to Organisation and Its Importance

1. What do you mean by organisation?

Organisation means enforcing a systematic approach to enhance productivity rate. According to the experts, organisation acts as the backbone of a company. It outlines a system that directs how activities within a firm should be conducted to achieve the desired goal. This system includes roles, responsibilities, and rules. 

Furthermore, it also determines the hierarchy system within a company and how orders will flow in that system. There are various elements of organisation as a concept, and successful implementation of it can affect the growth of a company.

2. What are the key elements of organisational structure?

The key elements of an organisation are identifying resources and segregating them, departmentalization, distribution of work, forming a chain of command. All these elements work together to confirm that the respective firm is working in a proper way. It also ensures maximum utilization of resources, both human and physical.

3. What are the benefits of an organisational structure?

This structure facilitates the achievement of goals by coordinating with every individual. It also reduces conflicts and brings transparency and eliminates repetition and overlapping of work. Furthermore, it promotes creativity, increases productivity by eliminating waste of resources, and reduces employee turnover. In a nutshell, organisation structure brings stability into a company.