6 points on how an organisational structure can help your company to grow
Efficient delegation of responsibility in an organisation determines the consistency in their business practices. A well-maintained company with a good organisational structure always thrives in its commercial endeavours and hardly fails to achieve its objectives.
Taking size into consideration, smaller organisations or start-ups usually do not require any structuring as the owner/CEO is the one in-charge of handling multiple tasks and operations. In large companies, however, proper structuring is crucial for the smooth flow of day-to-day business activities and the achievement of long-term goals.
As a talent expert I believe that smaller companies should develop a proper managerial structure; not only to ensure smooth workflow, but also to attract the best talent. These days numerous organisations also hire Talent Consultants and Experts for their valuable inputs on understanding organisational structure.
What is Organisational Structure?
The classic hierarchical arrangement of delegation, communications, line authority, rights and duties of an organisation. Organisational structure decides on how the roles, power and responsibilities are allocated, controlled, and synchronised, and how information moves among the different levels of management.
Organisation structures vary in polices, size and delegation. There are different types of structures, but the most common of all are the Functional Structure, Divisional Structure and Matrix Structure. Several companies follow the matrix structure which is a mishmash of both functional and divisional structure.
As talent consultants from Han Digital Solution we believe that a company can adopt any structure as long as it yield benefits in the long run. A company without a structure is like a tree without leaves.
Here are some reasons as to why a company needs an organisational structure:
- To reorganise internal business operations:
Start-ups usually have fewer number of tasks and hence work can be managed with little effort in a short duration of time. But, as a company grows in size, the number of responsibilities, operations, workforce, delegation and operations increase. Hence, it is crucial to prioritise each chore in a right manner. Having an appropriate organisational structure ensures that work is allocated among various departments under the direct supervision of managers and the same is coordinated with the senior managers and owners.
- To enhance the decision making process:
Having an organisational structure gives a company a sense of direction. It organises tasks and ensures smooth flow of work within departments. Since, work and communication is departmentalised, it becomes easy for managers to take decisions pertaining to their own departments. It also ensures efficient flow of information right from the operational level to higher level and therefore, decisions are made keeping in mind the ground realities.
- To operate in several locations:
When a company grows in size, it expands, opens up new avenues and franchises at multiple locations. Overseeing all locations seem next to impossible. In such situations, a good organisation structure such as the matrix structure can help owners manage ensure that all the branches are functioning smoothly and as per company standards.
- To improve work culture and employee performance:
A proper organisation structure enhances work culture by introducing order and system within the company. It helps in distributing responsibility to each employee thereby making them active participants in the business process. It gives them a clear picture about their day-to-day tasks and helps them organise their work as per the requirement. It also gives them an opportunity to rectify their errors through continuous guidance from their seniors and peers.
Having a good organisational structure makes communication and the decision making process transactional in which employees can actively participate and offer feedback to their immediate seniors and peers.
- To enhance client services and augment sales:
A business firm that has a good organisational structure always remains more focused toward its clients and customers. When roles and responsibilities are clearly outlined, the chance of committing errors is reduced which in return increases client/customer satisfaction thereby leading to increased sales.
- To attract external talent:
One of the major benefits of having a well-defined organisational structure is that it attracts new talent to a company. Employees often share experiences with their company on social media and company websites. A positive review about a company will always attract fresh talent as they seek to be a part of such dynamic workforce environment.
Similarly, a company with a decentralised delegation system is the most sought after by applicants. It not only attracts external talent but also helps retain the best talent as communication is interpersonal and flexible in nature. Such a lively work environment also offers them a chance to interact and work with top management personnel.
Our talent consultants at Han Digital are experts in offering valuable inputs on implementing the best organisational structure. We can help you understand your needs and suggest as per your company requirements. We can also get you the right talent through our trendy hiring services. Get in touch to know more or write to us at firstname.lastname@example.org