From the course: Introduction to the PHR Certification Exam
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Business functions and organizational structure
From the course: Introduction to the PHR Certification Exam
Business functions and organizational structure
- I've worked at companies who employed some really talented people. These companies offer good salaries including bonus and benefits packages that were so robust nearly everyone could live an upper middle class lifestyle. Yet the turnover at those companies were some of the highest in their industries. So what's going on? The central problem was the lack of an organizational structure that allowed employees to contribute creative ideas. The employees at these companies craved the opportunity to use their talents to maintain the company's competitive edge. But the structure got in their way. So you probably have an idea of why organizational structure is important, but let's get clear in this definition first. An organizational structure is essentially a roadmap of how communication flows and where decision-making authority rests throughout the levels of management. When the structure doesn't support the needs of the business, decisions are slow, communication is unclear and employees…
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