Organisation Structure – The foundation of a business

Organisation Structure – the foundation of a businessNow that you have started a business you are going to need people to work for you. Your employees are going to be your biggest assets. Even if you take the highest technology in the world and put it in the wrong hands it will of no benefit. Hence choosing the right people for the right job is very crucial.

To start with the process of recruiting you must have a clear idea about what type of an organisational structure you would want for your business. The two main aspects that need to be considered while planning the structure

The various job profile requirements of the business

The amount of money you are ready to spend on the employees which will include salary, perks and benefits

Once you know the number of employees and the job profiles they will work with you in designing the organisational structure. The hierarchy of the jobs has to be configured.

A simple and very general form of hierarchy is:

Flat Organisation Structure

This is the basic form of an organisation. One can add or delete details according to the requirement. If the business is too big then one will have more detailed segregation of the job profiles. The highest on the hierarchy will be the owner and the shareholders. They create a team of Board of Directors who then appoint the Chief Executive Officer. The CEO then recruits the Managers for various departments who have the teams to work under them. The departments can be chosen as per requirement. But Finance, Production, Research and Sales are the most necessary ones. If you are into service industry the names might differ a little.

Every employee has to report to the person on the next higher level in the hierarchy. Reporting is very essential as it helps one keep a track of the progress of a job or project in hand.

An organisation structure depends on various factors like various regions your business reaches in, various products that your business is involved in or some specialised department a business might demand like public relations or legislation or purchase.

The organisation structure will acts as a blueprint of your human resource helping each to understand their role and position in the business. so that the efforts would be channelized in a particular direction that would lead to the growth of your business.

 

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