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How to Change Organizational Structure: Important Steps


What is Organizational structure?

Organizational structure is the design of managerial hierarchy in a company, which enables the smooth flow of the information among the employees of the company.

The organizational structure of a company forms the base on the basis of which the policies of the company are formulated.

The structure of an organization or the company plays an important role in influencing and maintaining the competitiveness of the organization.

The methods by which change organizational structure can be as follows:

How change Organizational StructureSteps to Change Organizational Structure and Design:

1. Plan a structure:

In order to change organizational structure, you need to plan a structure first as without the structure you will not be able to move ahead.

For any of the changes, one has to create a base or the foundation for the next change. If you will not create a strong base, no one will get ready to adapt the new change.

2. Plan a meet:

You will have to plan a meet of the employees and the other members who form the upper hierarchy of the company, so as to discuss the change you want in the organizational structure.

After explaining the matter, you can expect from them the feedback regarding this and you will be appreciated, provided your plan is worth following.

3. Teamwork is required:

For such a work, you need a team work and for making a team, you will have to work in collection with all the employees. It is not a child’s play to change the whole lot of structure of an organization all alone.

It is one of the crucial decisions that an organization can make. It also takes lots of effort to take a step like this.

4. Explain the policies briefly:

You need to explain the policies and the rules that are being made for such a big change. Not just forming the policies and norms is essential but also explaining the benefits of such policies is vital.

If you will not discuss the benefits of the change, your desired change will not be accepted by the rest of the members of the company.

So, for such a purpose, you will have to tell the effects of the change on the employees as well as the company on the whole.

5. Make use of the positive language:

While you explain the whole process, make sure to use the positive and very good language for the purpose or you may have to face a rejection.

Positive language will persuade the employees and your plan will get a success.

6. Put forth the positive aspects:

As every day has a night and every night has a day in the same manner every plan has a number of advantages and also have a number of disadvantages too.

But here you will have to avoid the negative aspects and bring forward the positive ones.

7. Exemplify it:

You will be considered true only when some result will be shown to the employees, so, for that purpose, you will have to show any of the good examples.

Here you will have to do instead of just saying. Your verbal conversations and the plan in writing should turn into the reality, so as to bring forward the reaction and action of the plan to the company and also the organization.

Different Types of Organizational Structure:

  • There are three types of organizational structures like the functional structure, product and the third one is a matrix. The first type of the structure, i.e. the functional one controls the areas like the marketing and the engineering.
  • The functional organizational structure is in the companies where the works are divided according to the functions each one of the department performs. Such a structure can also be adopted by the small scale companies.
  • The second one that is the product type focuses on the sale of the company products or the brands. These types of the structures are found in the small scale companies where the manager is in direct contact with the president and also the employees within the organization. Most of the companies usually have the flat or the tall organizational structure and the small scale companies have such kind of the structure.
  • The third one is the matrix. This kind of structure is the mix of the both divisions and the functional structure. This type of structure is supported by the large multinational companies.
  • The other business organizational structure type is divisional. As the name suggests, the divisional structural organization is used in large companies where the geographical area is large enough to control the different divisions of the company at one time.
  • In such structure, the work of the company is divided into various divisions and the work goes smoothly in such organizations as every department has its own specialization.

Importance of Organizational Structure and Design :

1. Helps in effective communication:

Such organizational structures help in making the communication system in the company very fine and smooth.

No one gets into any sort of wrong and misunderstood communication as in every sort of the structure, the works are somehow divided and it forms the best part of the organizational structure.

2. Helps in evaluating the performance:

Through the separate and different kinds of the organizational structures, one is able to evaluate the performance of the employees on the whole.

For example, in the divisional and the functional structure, one can show his or her specialization in one thing, like if it is marketing or sales or whatever the types of divisions are there in the company.

3. Increases the efficiency:

The level of the efficiency also increases to greater extent. As everyone is doing the work according to one’s expertise, one gets a chance to be efficient and thus the level of efficiency also increases on the whole.

4. Goal achieving:

Every structure has some or the other advantages and the disadvantages. Setting aside the disadvantages, one can look forward to the advantages and those are counted in the importance of the above mentioned organizational structure.

5. Less burden on the employees:

As all the tasks are delegated and distributed according to one’s expertise, so it helps in lessening the burden of the employees within the organization.

As everyone performs each task, the work is also done on time and also the energy is being saved. This way there are number of advantages of the various structures of the organization.

6. Faster decision making:

The decision making process also becomes fast and furious. As there is no dependency of one employee on the other, the decisions within the organization are taken quickly without causing any delay.

By this, the whole process goes fast and in proper manner without any hurdles. This is one of the best important factors of the structures.

7. Relationships are easily clarified:

All the relations within an organization are clarified easily as it simplifies process of authority, accountability and the responsibility.

Every task is delegated and the work goes in quick succession. The atmosphere within the organization also remains peaceful which helps in further more fastening processes within the company.

8. Faster solutions to the problems:

In such organizational structures, the solutions to the problems are also very fast. The problems are discussed in a professional manner, the solutions are taken after getting advice from all the employees who are experts in their fields.

So, in this manner, the solutions to the problems are found in an easy manner.

9. No hurdles:

Hurdles are avoided in big organization because if any of the hurdle arises, the steps are taken from the lower level only and it helps a lot in avoiding the biggest hurdles.

Moreover, every department will themselves solve the issues without spreading the word across the company. This way the solutions of the problems are found without disturbing the whole environment of the company.

10. Peaceful environment within the organization:

The environment in the company remains comfortable and peaceful as every employee works on his or her own and this forms the best part of following the structural design setup in the organization.

No fight, no small issues become a obstacle in their work. This way, it remains calm and the work environment becomes healthy to work efficiently.


So, above are some of the importance that the organizational setups provide to the employees as well as the organization itself.

Apart from that, the changes that one wants to bring in the organizational system setup, should be preplanned, taken into account of the higher authority and then should be brought to lower level employees. Other than this, make sure you are determined towards the task and hence you will succeed.