The importance of organizational structure is particularly crucial for communication. Organizational structure enables the distribution of authority. When a person starts a job, he knows from day one to whom he will report. Most companies funnel their communication through department leaders. For example, marketing employees will discuss various issues with their director. The director, in turn, will discuss these issues with the vice president or upper management.
I'm also with you.
I am in full agreement and communication is key to the organizational structure and development of the business objectives.
orgn chart may highlight job involvement also..is not it
Business Management - Management structures
Teamwork at management level produces common goals and directions
In order to attain the objectives of the organisation, an organisational
chart which sets out in diagrammatic fashion the roles and responsibilities
of managers and, hence, their main work areas and tasks within the
organisation, should be established. The primary purpose of establishing
this chart is to assist in the efficient and effective operation of the
organisation. The chart will enable stakeholders  to gain a clear
picture of what should happen within the organisation.
The structure established through this chart will highlight for the
* the primary or core areas of responsibility and the degree of
* the distribution of power and authority
* the level of delegation and accountability 
* the communication channels within the organisation and the methods of
communication used for reporting purposes
* the key result areas that will be evaluated
* the control mechanisms adopted e.g. degree of centralisation and the
span of control used
* the co-ordination processes used
* the decision-making processes adopted
* other arrangements associated with the good order and functioning of
This organisational chart is the formal structure of the organisation
which will be determined after considering the following factors:
* the strategic, tactical and operational objectives
* the size in terms of the number of employees, locations, financial and
* the age
* the environment within which the organisation operates
* the level of specialisation and independence that exists and its
* the current distribution of power and authority between managers
* other characteristics (as discussed in section _Characteristics of
However, in reality, the actual structure of the organisation may vary
greatly from this formal structure due to the dynamic nature of large-scale
organisations and the environments within which they operate.
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