Businesses require structure to grow and be profitable, otherwise you’d have people pulling in all sorts of different directions.
Planning the structure ensures there are enough human resources with the right skills to accomplish the company’s goals, and ensures that responsibilities are clearly defined.
Each person has a job description that outlines duties, and each job occupies its own position on the company organization chart.
Since the flow of information is essential to an organization’s success, the organizational structure should be designed to with clear lines of communication in mind.
Reporting relationships must be clear so all members of the organization understand what their responsibilities are and know to whom they are accountable; otherwise, responsibility for a task may fall through the cracks.
These clear relationships make it easier for managers to supervise those in lower organization levels.