Features of the good organization structure
1. Simplicity: an organization structure should be basically simple. The concept of the simplicity implies that various organizational relations should be kept minimum possible.
2. Flexibility: an organization structure should be flexible enough so that changes can be incorporated whenever needs arise. The structure is design do not only for a time period but for a distant further also. As such continuity must be maintained in the organization structure over the period of time.
3. Clear line of authority: whatever the form of structure is adopted, there should be clear lines of authority running from top to bottom or in horizontal directions.
4. Application of ultimate responsibility: The concepts of the ultimate responsibility suggest that although a superior manager assigns some of the work of his subordinates. He is ultimately responsible for performance of total work.
5. Proper delegation of authority: the concept of ultimate responsibility can work only when there is proper delegation of authority at various levels of the organization. Delegation of the authority refers to authorization a manager to make certain decisions.
6. Minimum possible managerial levels: as far as possible, there should be minimum managerial levels. Greater the number of managerial levels, longer is the line of communication in the chain of command and the communication has to travel along the line creating problems of the delay and distortion.
7. Principals of unity of direction and command: unless absolutely essential, principals of unity of the direction and the unity of command should be followed.
8. Proper emphasis on staff: line functions should be separated from staff functions and adequate emphasis should be placed on important staff activities.
9. Provision for top management: in corporate form of organization, it is imperative to provide some means by which the share holder and members of the brand of the broad of directors participate in management process. Normally the share holders are indifferent so far as day to day management affairs of the company are concerned.