Organizational infrastructure is the collection of the business procedures and policies of a company based on defined responsibilities and duties of its employees. As a result of the continuous adjustments to the various external and internal requirements, companies need to have a well-organized organizational infrastructure to cope with these influences.
Some external and internal requirements include the government, markets, technology, community, customers, products and employees. A formal organizational infrastructure and careful organizational planning are the only way a company can efficiently adjust to these requirements. Procedures and policies must be properly implemented because they are very critical in achieving growth and profitability of the company through efficient utilization and allocation of the limited resources of the company.
Organizational performance depends on the organizational infrastructure because the procedures are meant to assist in ensuring that the company’s business activities are carried out consistently and efficiently. Therefore, proper implementation of formal procedures and policies is an effective tool of management. When the procedures and policies are implemented properly, all the effort of the employees is geared towards accomplishing the objectives of the management, and the result of every employee’s work in the company is predictable and can be managed easily.