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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.

Additionally, according to each person, each group, or each organization, there still have some personal abilities or some functions that are different. Because of this reason, coordination is going to become more important in organization life. Based on this factor, there is the only way to make a company better. That is to cooperate to each person, each team, or each organization. Why does cooperation bring tremendous profit to company and why is cooperation important? First, it connects each person or each department. Each person may recover each other or recover those which are not good enough. Through this chance, they could increase their personal value in their businesses. Second, via this cooperative pattern, they could figure out what kinds of needs their customers want. For example, the responsibilities of the department of design is manufacturing or designing in a high-tech company. However, their skill is developing useful software. Yet they do not know what kinds of software their customers need. Therefore, they need salesperson to negotiate with customers to find the answer and tell them what kinds of software they need to develop. In other words, they cannot separate the businesses and cannot be individual operation.

Finally, some people may across the line. It means some people may not only focus on their personal business. They may do extra tasks that do not belong to them. Probably they could think if they do a lot of additional assignments, they may be admired by their boss and get an opportunity of promotion. Yet this action is not correct. In terms of doing all tasks by one person without cooperating, it will not be effective in doing employees’ business for those who always across the line. Of course, it could not only be individual. It also could be groups or departments. Therefore, boundaries have to be demarcated clearly, or it only makes a company operate without order. Meanwhile, this inappropriate behavior may waste tremendous cost because company has to send someone to correct problem.

In summary, organizational structure is kind of effective method to create extreme benefit. However, a company consists of different kinds of members. Therefore, in order to make an organization operate effectively, managers or leaders have to know how to stay with these directions, and then they could lead a company to make incredible profit. In fact, organization has tended to network organization in development. In terms of the level of the organization reduced, the organizational function is going to be easily managed by managers or leaders and plus the previous concept I mentioned, businesses could effectively operate because they could decrease some of the complicated process.

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