question archive How does the current organizational and operational structure, including the system of corporate governance, benefit the firm? How does the current organizational and operational system challenge the firm's success? What would have to change to reverse how structural issues are impeding the firm's success?

How does the current organizational and operational structure, including the system of corporate governance, benefit the firm? How does the current organizational and operational system challenge the firm's success? What would have to change to reverse how structural issues are impeding the firm's success?

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How does the current organizational and operational structure, including the system of corporate governance, benefit the firm? How does the current organizational and operational system challenge the firm's success? What would have to change to reverse how structural issues are impeding the firm's success?

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1. The organisational and operational structure of a company defines its hierarchy. Each position is identified , including operations and functions involved in it and determines who has to report to whom within the firm.This creates an order and avoids the problems of confusions, chance of duplication and chaos.Governance , structures and principles identifies the distribution of rights and responsibilities in the organisations such as the board of directors, managers, shareholders , employees and other stakeholders.It also includes rules and procedures that enables the firm to make decisions in corporate affairs. Another benefit is that structure and  governance in an organisation would help monitor the actions, policies , practices and decisions , The major benefit is that it helps to mitigate the conflicts of interest between stakeholders.A strong and apt organisational and operational structure followed by an organisation and a good corporate governance ensures corporate success and economic growth .Optimum use of resources, coordination and job satisfaction are the positive outcomes of organisational structure. It could maintain investors' confidence as a result of which , company can raise capital effectively and efficiently , lowers the capital cost and creates a positive impact on the share prices. It ensures that the firm is managed in such a manner that best fits the interest of an organisation.

2. If the organisational and operational system followed by an organisation does not meet its interest or if it is not apt then ultimately it poses greater threat in the firms success. Communication is a greater factor for firms success and following a rigid structure and adherence to formal lines of communication could slows down the faster flow of information this could reduce the efficiency too. Organisational environment is dynamic in nature so to attain success flexibility in operations and activities is necessary but the fixed and formally established line of relations appears to be inflexible to meet the changing needs. In case of emergency or situations that demands quick decisions, following the formal line for communication and action could reduce efficiency. The creativity of individuals are restricted to the activities assigned to them .

3. To solve or reverse the structural issues impeding a firms success, at first the firm has to consider that whether the existing or current structure has the ability to meet the requirements, needs and interest of the organisation and its stakeholders.If the organisation structure does not match its requirements that itself act as a greater impediment to success.Change in structure is necessary if does not fit the organisation . Clarity in roles and responsibility has to be ensured. The structure in an organisation should increase  and improve the productivity , employee morale and satisfaction . To solve the problems of resistance from employees and lack of morale , proper communication has to be ensured . The system of communication and attitude of managers has to be changed for solving the issues that impeding the firms success.