7 Possible Reasons Your Organization Structure is not working

The organizational structure of a company is its most important element. Without a proper organizational structure, achieving objectives and having a clear commercial strategy dedicated to innovation and modernized operations, is not possible. Here are 7 possible reasons your organization structure is not working –

  1. No Clear Goals

First, it is important to know the main reasons why your company needs reorganization. Identify the key factors of performance that the organization is not living up to.

  • Are you trying to cut expenses and improve effectiveness?
  • Is your workforce struggling to maintain a certain degree of performance?
  • Do you want to promote growth by cutting down costs or changing the work culture?
  • Is the reporting structure of the organization too complicated, which in turn is impeding worker progress and satisfaction?

Clear and well-defined practices that reflect what the objectives of the new organization are will help in making the life of the workforce easier.

  1. Complacency in the workforce

Company policies should drive the organization design and not benefit only certain influential members in the team. Placing certain individuals in positions of power in order to cut down labor costs will put the revenue streams, overall efficiency and most importantly worker satisfaction at a massive risk. In addition, the workforce may become detached over time as impartiality is undoubtedly the number one cause of conflict in any organizational structure.

  1. Causing unnecessary managerial disruptions

Even though it is true that during reorganization efforts, considerable changes to the managerial hierarchy may provide a fine opportunity for the team to address key inefficiencies, leaders should be wary of fixing things that aren’t broke. Drastic staff cuts or administrative strategy changes can result in decreased worker morale, deterioration in innovation and an overall disturbance within the organization.

  1. Making decisions that compromise the agreed-upon procedure

Making supplemental agreements that compromise agreed-upon processes that everyone in the organization knows about can seriously threaten the performance levels. Although such casual behavior and decision-making in the workplace may seem innocent at the time, a prevalence of such attitude in the workplace is not welcome at all.

  1. Lack of assessment

Having a team dedicated to performance assessment including analyzing the following is very important –

  • Current expenses
  • Output volumes
  • Service levels

Without this information, making fully informed decisions is impossible

  1. Lack of confidentiality

It is extremely important for members involved in any organization effort to keep development information inside the company’s circle of trust. An organization structure wherein there is lack of confidentiality will never work.

  1. Not having a clear communication plan

Details about any reorganization efforts, along with specifics of the process should be communicated to every member of the organization at every level. This will help evade any confusion regarding commercial everyday tasks and expectations during the reorganization. If there’s no clear source of information in the organization, the legitimacy of any information within the organization faces the risk of being jeopardized.

Analyze the main drivers of your organization. Avoid these seven common mistakes that have the potential to make your organization structure fail.


No organization can move forward without a proper structure. In case your organization has no clear goals, or is suffering from unnecessary managerial disruptions, or there is no clear communication plan amongst team members, then there is high possibility that your organization structure is failing to achieve the desired results.

Reshali Balasubramaniam

Head of HR, HR Counselor and adviser at https://jobpal.lk and EFutureTech Systems. Submit your resume online and be contacted by prospective employers.


company culture, Development, Employees