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Organizational Structure Of A Business
By Tom Lindstrom
It is necessary to have an effective business organizational structure to ensure that the chain of command stays clear. In this regard, management has to form groups to carry out the different activities in order to achieve the company’s goals defined during the planning stage. The organizational structure, usually presented through an organizational chart, shows the horizontal and vertical relationships between each position, represented by a rectangular box. Importance of an Organizational Structure The organizational structure is presented in a pyramid-like chart of connecting rectangular boxes representing the different positions. There is one box at the top to represent the president or general manager, followed by a few boxes for the managers on the next lower level, then more boxes in the next lower level for the supervisors, and the rest of the employees at the bottom of the pyramid-like chart. The organizational structure is important to have order in the workplace. It shows who is in charge for the whole organization, for the department, for the section and whatever divisions are shown in the chart. It guides all employees on the division of duties and responsibilities and the reporting chain. The connecting lines between boxes show the flow of communications in the company. The chart is like a map. It is an effective guide so any employee does not get lost is the company hierarchy. If an immediate superior is not around, the employee would know from the chart to whom to go to in case of problems. Preparing the Organizational Structure The following steps are more or less what happen in the preparation of an organizational structure: * Understand and follow the plans and objectives approved during the planning stage
* Determine the departments based on the functions, geographical location customer or product brand. The division of duties and responsibilities should have been decided during the planning stage
* Divide the departments or functions into sub functions or sections
* Allocate the appropriate manning taking into consideration the machines or equipment to be run and the expected product output per unit time. Determine also the required manpower for the support groups, the administrative groups and other positions.
* The complete job descriptions, the employee qualifications and other relevant requirements in every position is part of the organizational structure although they are not shown in the organizational chart. The organizational structure is subject to change as needed.It is an official document that is usually posted in the bulletin boards of every department and sections. There may be an overall company organizational chart, and a sectional organizational chart showing only the supervisor and the personnel under him or her. You should note that the organizational structure should be based on the positions agreed upon during the planning stage; it should not be based on the existing personnel of the company.It is the responsibility of the company to hire or assign the appropriate personnel to fill up the different positions. |
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This intel was contributed by Tom
Tom
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May, 2012
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