Why is an organizational structure important? Justify your answer with five reasons

Importance of organization structure:

1. Structure allows for better communication: Flow of information is important for any organization to run smoothly. For example, sales manager and sales executives will report to associate vice president of sales and will provide him the necessary information for smooth running of an organization.
2. Clear reporting relationships: It allows employees to have better understanding of their responsibilities and duties and they are aware of their reporting managers as well. It allows managers to supervise their team members and don’t interfere with other manager’s responsibilities.