The organizational structure serves as the backbone of any enterprise; as it outlines the organizational units comprising that enterprise within hierarchical levels interconnected by lines of authority interspersed with instructions, orders and relationships. However, the organizational structure is a building that defines departments and their internal divisions, containing administrative levels within a hierarchical form. It ensures the provision of an appropriate framework for operational processes and expected performance, allowing for the coordination and control of activities, in order that the management makes a decision. Its primary advantages includ:
Indicating the administrative levels – defining responsibilities – specifying, measuring and improving competencies related to performance indicators – arranging and determining relationships and granting necessary authorities to officials – specifying divisions and departments in detail – clarifying job titles – working on defining the relationship between institutional operations – assisting in achieving the desired goals – identifying responsibility centers with cost centers – management accounting procedures
