THE IMPACT OF ORGANIZATIONAL STRUCTURE ON IMPROVING OPERATIONAL EFFICIENCY AND BUSINESS PERFORMANCE OF COMPANIES

The impact of organizational structure and its primary objective is improvement operational efficiency and business performance of companies, as it plays a role in determining the level of operational efficiency and commercial performance. This research explains how hierarchical structure, chain of command, and organizational performance indicators have a direct impact on the efficiency and performance of commercial companies. The methodology of this study includes a systematic review approach. The results of multiple studies indicate that structures aligned with the company’s strategies lead to increased coordination between departments, accelerated decision making processes, and enhanced productivity. The importance of the topic includes examining the impact of the relationship between organizational structure and market performance, such as profitability, market share, and customer satisfaction, as well as the effect of a structured and appropriate organization aligned with the nature of activities and the size of the company,and how it should be adjusted according to market conditions. The conclusion of this research states that alignment between organizational structure and the external environment of the company helps improve responsiveness and competitive strength in the market.