If a company was built, organization structure has to be existed within a firm. Why is organization structure important? It stands for how effective the companies operate. With an excellent structure, businesses may create a tremendous profit in the future. However, a successful structure has some important keys. In other words, a successful company consists of a successful structure. Otherwise, a successful organization structure divides into some portions as this article mentioned, some of which are the division of labor, coordination mechanisms, and organizational boundaries.
Wherever people are, the division of labor is a situation people will be faced in each group. This category talks about how managers distribute their power to their subordinates, how each department manage their tasks, and how corporation operated effectively. It also tells us how much responsibilities entire group or individual takes. On the other hand, effective division of labor could save the cost which businesses spend. Therefore, the division of labor in each enterprise is going to be a tendency during organizational development whenever it is in current time or in the future. Especially in service industry, organizational service cannot be ineffective. If businesses do not work effectively, they may lose substantial customers. However, how do managers effectively distribute tasks to each person? They could figure out what kind of abilities or skills their employees have based on human resource management and make suitable distribution of the jobs. It is not necessary to redesign position for subordinates as soon as possible. In other words, managers have to try to decrease the transfer of personnel within company. When the frequency is high, it represents this company do not operate effectively because each person has their own professional skills. Therefore, this problem all managers have to think of.