What is the purpose of organizational structure?

The purpose of organizational structure is primarily to establish a hierarchy within an organization. This hierarchy outlines how roles, responsibilities, and authority are distributed among various levels of management and staff. By defining who reports to whom, organizational structure helps to create a systematic framework that facilitates coordination and ensures that tasks are completed efficiently.

Having a clear hierarchy allows for streamlined decision-making processes, enhances accountability, and clarifies where individuals fit within the overall organization. This is essential for promoting organization-wide alignment toward goals and ensuring that employees understand their own roles and how they contribute to the organization's objectives.

While outlining communication channels is a beneficial aspect of organizational structure, it is not its primary purpose. Communication can be an outcome of a well-defined structure, but the core function is framing the authority and accountability within the organization. Job benefits and compensation and marketing strategies are unrelated to the organizational structure itself but rather pertain to human resources and business development functions, respectively.