Indications of An Ineffective Organizational Structure
Indications of An Ineffective Organizational Structure
Structure
by Arnold Anderson, Demand Media
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Your organizational structure is what maintains the hierarchy in your organization, facilitates
communication and keeps your organization running smoothly. Effective leadership and strong
organizational structure are more important to the success of a company than technology,
according to the International Institute of Management. In order to address an ineffective
organizational structure, you first need to learn to identify the signs of a failing company
framework.
Breakdown in Communication
If departments are no longer efficiently sharing information and processing data as they should
be, then that is a problem with organizational communication. One of the causes of a breakdown
in company communication is that departments have begun to act on their own. There are many
reasons why this could happen including a lack of trust between departments, the feeling by one
department that another department is incapable of performing its job or incompetent
management in the departments. The departments bypass the organizational structure and
communication begins to break down.
Low Morale
When departments are not communicating and individuals within those departments are getting
reprimanded, morale in the company will begin to suffer. Employees start to ignore the
organizational structure because of fear of discipline, they do not trust their manager or they no
longer feel included in the overall success or operation of the company. In some cases employees
may have multiple managers due to a breakdown in the company hierarchy, and this will cause
confusion, according to employment expert Joan Lloyd writing on the Job Dig website. An
alienated workforce with low morale is a product of a failing organizational structure.
Customer Service
An ineffective corporate structure sometimes lacks the ability to monitor interactions with the
customers. If the sales group is not required to report customer issues to the customer service
group, then the customer service people will be unaware of the problem if it should occur again.
In an ineffective organizational structure, there is no cohesive way of handling customer issues.
When customers contact the company, they may get three different answers if they talk to three
different people. This causes a problem with customer retention and ongoing revenue. If you
notice that your company is having a difficult time holding on to clients, you will want to check
your organizational structure for problems.