How to choose an organizational structure

To understand what organizational management structure is suitable for a business, you need to assess your capabilities. For example, a company consists of eight people. You should not complicate the lives of employees and build a divisional structure. Most likely, in this case, a horizontal structure would be ideal.

While the company has few employees

This is the best option. Just draw up a reporting chart, describe the duties of the team members. This will be enough for the first time.

As soon as the team starts to grow and the business country email list needs change, you can build a new management scheme. To do this, describe:

  1. How many team members and managers are there now and who are you planning to hire in the near future? What are the plans for the career growth of employees?
  2. What teams and managers are needed to organize the work.
  3. The founder’s duties and tasks that will be under his control. The method of managing the enterprise depends primarily on this. Let’s say the structure is chosen to relieve the management. Then it should be a functional, not a linear management scheme.
  4. Features of the company, plans for its  scaling in accordance with the business strategy.

Analyze whether there are any unnecessary positions, especially among managers. Here you need to find a balance so as not to overload employees with how to correctly form the optimal cost of a product or service work and not to appoint too many managers. After all, this will complicate the decision-making process.

Once you have described all the listed points, it will become clear which organizational structure option should be chosen for the business. The main rule in this case is not to complicate the organization’s work by creating unnecessary divisions.

We have created a template of which organizational structure models are suitable for different types of business. You can rely on it when choosing the type of organizational structure.

How to Develop an Organizational Structure: A Step-by-Step Guide

Let’s imagine that you have chosen the type of organizational b2c fax structure. Now you should build it correctly and describe it. You should not copy a template from the Internet, it is important to take into account the specifics of the business. To create an organizational structure, you need to follow a step-by-step algorithm.

Step 1: Define a strategy

The creation of an organizational structure can begin with the development of a strategy , if there is none yet. A company’s development strategy is a long-term action plan that is needed to achieve the main goals. It determines in which direction the organization is developing and how this will be achieved.

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