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A company management needs to select a specific kind of organizational structure. Every business owner should select the ideal organizational type for making the operations run smoothly. 

An organization comprises the distribution of jobs amongst employees besides an alignment of jobs towards a company’s goals.

So, organizations are also known as the 2^nd most vital managerial function and its job is coordinating the job of employees, procuring resources, and integrating the two according to the goals of a company.

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Method of Organization

• Step one – Determining and classifying the activities of a firm.
• Step two – The combining of activities into some workable departments.
• Step three – Assignment of authority besides liability on a departmental executive for undertaking various delegated jobs.
• Step four – Forming relationships between subordinates and superiors within a department or unit.
• Step five – Framing some policies for ideal coordination that happens between subordinates and superiors. It also involves forming some particular lines of supervision.

Why is it Important to Adopt Ideal Kinds of Organizations?

Improved communication – Every organization needs to keep the channels of communication. And so, organizations should be designed in a manner that departments and people can coordinate their efforts.

Improved performance of employees – When an organization is not organized well then the employees will not come to know the tasks they need to perform and who they should report to. When an organizational structure gets defined well then it will make the objectives of a company clear to all the stakeholders. This way, all employees will know about their requirements. Based on the kind of organization, executives and senior managers too will be capable of establishing their roles. They will be able to find out whether or not they are required to support their employees.

Set the priorities of an organization – It is very important to have a sturdy organizational structure when you begin to set priorities. When it is a big hierarchical structure, then the executives and managers do determine the highly important objectives. After this, the heads of depts. can determine the method of allocating various resources as well as particular jobs.

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Concepts of Organization

• Static concept – The static concept of organizations gives stress on the position in place of people.
• Dynamic concept – In the dynamic concept, organizations become a method of organizing people, systems, and work.

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