• it shows at a glance the line of authority and responsibility It is a reliable blue print of
how positions are arranged.
• It is a tool of administration to tell employees how their positions fit into the total
organisation and how they relate to others.
• It serves as a valuable guide to the new personnel in understanding the organisation and
for their training
• It provides a framework of personnel classification and evaluation systems
• Communication. 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.
Kavungya answered the question on May 17, 2019 at 15:16
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