Organisational structure connects and aligns the various components of a company for optimum performance. The structure that is defined has an impact on how well an organisation executes its strategy and goals. To help with this strategic alignment, leadership must be aware of the features, advantages, and restrictions of different organisational structures.
Every organisation needs a structure. It shows the relationships between positions and the degree of accountability associated with each one. In addition, it demonstrates the hierarchy of functions inside the company. You can stay organised during the start-up phase of your small business and beyond by developing a clear understanding of its organisational structure.
Structures in an Organisation
The two types of startup management structures that are most frequently used by growing enterprises are flat and hierarchical structures.
You adopt a Flat Structure, with the boss at the top and all other employees reporting to him/her when you only have a small staff and the owner has ultimate say over the majority of decisions. Each person could have a particular specialisation or area of skill.
A Hierarchical Structure could be used if your company starts off with numerous departments, such as accounting, sales, marketing, and IT, and each department has two or more employees. This is the typical hierarchy that includes employees, coordinators, managers, and directors.
How to choose a structure that fits with your business
Early-stage startups sometimes have a very straightforward structure throughout their first stage and even far beyond. Small businesses don’t have to cope up with the intricate structural decisions that huge firms make.
You are most likely the owner and manager of the organisation, with employees reporting to you. If you have one or more partners, the organisational chart can start with the partners, including yourself, then the manager (also you), and then the staff. Most start-ups initially start this way. Some of the biggest companies in the world like Microsoft and Google followed this structure during their initial days.
Here are a few key pointers that will assist you to understand how to create organisational sync-
1. Concentrate on your Core Competencies
The assets and skills that make up a company’s competitive advantages are its core competencies. According to a current organisational strategy, a company must identify, develop, and capitalise on its core strengths in order to outperform the competition. McDonald’s has standardisation. It serves nine million pounds of French fries every day and every one of them has precisely the same taste and texture. Similarly, Apple has style. The beauty of its devices and their interfaces gives them an edge over its many competitors.
2. Evolution of Roles
After a certain time, the founder of a start-up frequently learns that he cannot effectively handle every managerial duty. Dedicated workers are prepared to assume the responsibilities of lower-level management, such as financial and marketing managers.
The owner and management can concentrate on more important objectives by assigning managing duties to employees who are capable of executing it and evolve them into better roles. Employees gain expertise and experience in carrying out particular tasks over time, increasing the effectiveness of the company.
3. Define Job Descriptions
Have each employee record their present responsibilities and areas of responsibility. The qualifications needed for the job, the person who currently reports to them and the people with whom they frequently interact within the company should all be listed in their job description. The job descriptions assist the business owner in keeping track of all the duties and responsibilities necessary to run the enterprise and assessing whether workloads are fair.
4. Control and Command
You must have a chain of command in order to assign tasks and approve work. You can specify how many levels of hierarchy a certain department or business line should have if your organisation has an organisational structure.
Almost all businesses have a structure in place that outlines who is in charge of certain groups of people, teams, or divisions. Thanks to the chain of command, the flow of work and responsibilities can be easily determined and understood.
5. Establish Organisational Charts
Create a planned organisation chart outlining the organisation’s future structure if, for instance, the business strategy covers the next three years. A box in the chart represents each job title within the organisation. The boxes include the names of the current employees. New positions will simply have their titles, such as accounting supervisor. Determine who reports to which management for each role by designing the reporting connections. The business owner can assess whether the organisational structure is balanced by displaying it as a chart.
examples of this type include insurance companies, engineering firms, law firms, regulatory agencies, etc. In other words, organisations that need isolated technical advice to assist employees who handle or manage the day-to-day operations on the front line
6. Growing and Adapting
You might need to change your company’s organisational structure as it expands. Your organisational structure could alter if you hire interns or outsource out daily work. Additionally, if you employ teams of workers with certain specialities, cluster them. This will make it apparent who each person works with on a regular basis and who to talk to about specific difficulties.
Periodically review your organisational structure. Make sure that roles and connections work as well as possible, and redefine them as necessary. How you set up the structure will depend on your management philosophies. For example, if you have an authoritarian ideology, you most likely will have a very centralised organisation with various jobs that blatantly and frequently report directly to you.
There are entire disciplines of research devoted to determining how to optimise the structure of organisations in order to maximise their effectiveness and productivity. Before choosing the ideal style of organisation for their company, senior leaders should evaluate a number of criteria, such as the company’s goals, industry, and culture.
Growth is essential for the survival of any organisation. A structure will aid in the establishment of a solid foundation for early-stage enterprises. We at Blue Helion have assisted several organisations in establishing their organisational structure which has allowed them to flourish in their field. Our solid business planning paired with the correct execution strategy complements and supports your main business idea. Visit our Website to learn how we can help you achieve your goals.