Oct 22

Why You Must Develop an Organisational Structure for Your Business

An illustration of how activities such as task allocation, coordination and supervision are directed towards the achievement of organizational objectives is what is referred to as an organisational structure. It is basically a framework that helps employees do their jobs and achieve their goals. When starting-up, most businesses are run by founders and employees are recruited as the businesses expand. Decisions on recruiting the first employee are usually over-delayed to due to poor cashflows and the fear to actually maintain these employees. As a result, businesses usually tailor expansion of their head-count to the over-demanding task centers which will still have a strong connection to the founder(s). Research has also shown that an appropriate Organizational structure has great strategic significance for an SME’s long-term development, and also plays an important role in resolving problems emerged at the start-up stage.

Good organisational structures support organisations in the following ways and here below we segment them into three major ways;

Strategic support

1.Implementing an appropriate organizational structure empowers an organisation to develop a clear growth agenda and this supports the organisation to better focus on agreed set of objectives rather than erratically shifting from one to another where no one is mandated to do so.

2. It also supports the attainment of organisational goals and objectives. When a strategic focus is developed, the organisation structure allows the organisation to identify who is responsible for what. Such a structure will also spell out details of support that is required at different points to enable accomplishment of these goals and objectives.

General management

From the wide roles of a manager, they can also be segmented into 4 common sub-groups of Planning, Leading, Organising and Controlling. An organisational structure supports managers to execute their core roles in the following ways.

1. Planning

  • Effective planning: – Since the goals are clearly established and resources clearly identified, both short term as well as strategic planning becomes more focused and realistic and such planning contains the provision to permit changes to be made in the right direction including expansion and contraction of facilities, operations and activities when it becomes necessary.
  • Salary scaling: A fair and equitable wage and salary schedule is based upon the premise that the jobs with similar requirements should have similar benefits. If these requirements are clearly established and the yearly increments or the cost of living increments for each type of job are properly and clearly understood, then compensation administration policies are easier to implement

2. Leading

  • Succession: An appropriate organizational structure is better able to prepare qualified employees for management. When the company operates under a strong structure, a comprehensive management training plan is easier to create and execute to help maintain a strong managerial core. Departments can work together on a developmental plan to help encourage the training of managerial candidates within any department.
  • Training: A good organizational structure makes employee training easier to administer, and it also allows it to remain flexible based on the changes within the organisation. When organisational structure regulates the flow of information, then changes within that information are easier to monitor and better adaptable for a company-wide training program.

3. Controlling

This is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in a desired manner. An effective organisational structure are able to put in place suitable checks and balances to deter possible ulterior motives that could be detrimental to the business.

4. Organising

This is a management function responsible for a systematic process of structuring, integrating, co-coordinating task goals, and activities to resources in order to attain objectives. An organisational structure allows effective communication (top-down, down-up, teams, geographies etc) which ensures clear coordination within and out of the organisation.

Executing Operations

1. Efficiency and Harmony: An appropriate organisational structure ensures harmony in day-to-day operations as different staff members are sure of their roles and responsibilities and thus, no conflict in activities. Such a situation also enables efficiency as tasks are not duplicated and do not also overlap.

2. Decision Making: An organisational structure can make decision making a more efficient process. When a defined hierarchy is in place, the company is better equipped to make important decisions and adjust practices to meet the requirements of the organisation.

3. Enhances productivity and innovation: When an employee is given sufficient freedom within the domain of his responsibility and his authority, it is a fertile ground to nurture innovation and spur productivity. Since the authority and the extent of exercise of such authority is known, it develops a sense of independence among employees which in turn is highly morale boosting. Because of a sense of belonging and high morale that a well-structured organization develops among employees and also because of clear-cut accountability, recognition of skill and appreciation for their contribution towards organizational growth, the employees develop their own initiative and a spirit of innovation and creativity.

The benefits of an organisational structure can never be underestimated, but it is also true that many small and medium sized enterprises do not have sufficient skills to get into this so-called “non-important” task. In the next article we shall share a detailed guide on how you can develop an appropriate organisational structure for your business.

By Brian Ahabwe Kakuru

Brian Ahabwe KakuruBrian is the Managing Director at BLEGSCOPE®, and has 10+ years of management consultancy experience notably in the finance & banking industry, MSMEs, FMCG companies and in the service industry. You can follow him on twitter >> @BrianAhabweK


Skip to comment form

  1. I have to express my passion for your kindness supporting those individuals
    that must have assistance with your topic. Your real commitment to passing the solution throughout appeared
    to be unbelievably significant and have always allowed folks just like me to achieve their endeavors.
    The insightful facts means so much a person like me and somewhat more to
    my office workers. Warm regards; from each one of us.

  2. I think this web site contains some rattling fantastic
    information for everyone :D.

  3. If some one desires to be updated with newest technologies after that he must
    be pay a visit this site and be up to date every day.

  4. of course like your website however you have to test the spelling on several of your posts.
    Many of them are rife with spelling issues and I to
    find it very bothersome to tell the reality then again I’ll certainly come back

  5. I am just commenting to make you understand what a awesome experience my girl developed using
    your site. She learned lots of pieces, with the inclusion of what it is like
    to possess a very effective helping mood to get other people easily thoroughly grasp a
    number of impossible things. You really exceeded our expected results.

    Many thanks for presenting the practical, trusted, informative
    and as well as unique tips about this topic to Mary.

  6. Excellent way of describing, and good piece of writing
    to take information regarding my presentation subject matter,
    which i am going to deliver in university.

  7. There is obviously a bunch to know about this.
    I feel you made various nice points in features

  8. Great items from you, man. I have consider your stuff previous to and you are just extremely magnificent.
    I really like what you have bought right here, really like what you’re
    stating and the best way in which you say it.
    You make it entertaining and you still take care of to keep it smart.

    I can not wait to learn far more from you. That is
    actually a tremendous website.

  9. Hi, this weekend is good in support of me, for the reason that this point
    in time i am reading this fantastic educational post here at my

  10. Simply wish to say your article is as amazing.
    The clearness for your put up is just excellent and that i could suppose you’re an expert on this subject.

    Well together with your permission allow me to grasp your RSS feed to stay updated with drawing close post.
    Thanks a million and please carry on the gratifying work.

  11. This is the right site for anybody who wishes to find out about this topic.
    You understand a whole lot its almost hard to argue with you (not
    that I actually would want to…HaHa). You definitely put a
    new spin on a subject that has been discussed for a long time.
    Great stuff, just excellent!

  12. I just now wanted to thank you yet again for that amazing web site you have
    developed here. It’s full of useful tips for those who
    are truly interested in this subject, particularly this very post.

    You’re really all so sweet plus thoughtful of others and also reading the blog posts is a fantastic delight if you ask
    me. And such a generous reward! Jeff and I will have fun making use of your ideas in what we should do in the near
    future. Our listing is a kilometer long so your tips is going to be put
    to fine use.

  13. It’s remarkable to go to see this web page and reading the views of
    all friends regarding this paragraph, while I
    am also eager of getting experience.

  14. I have been reading out a few of your stories and i must say pretty clever stuff.

    I will surely bookmark your website.

  15. I visit each day some websites and sites to read articles, except this weblog offers quality
    based articles.

  16. You completed a few fine points there. I did a search on the matter
    and found most persons will agree with your blog.

  17. It’s remarkable for me to have a site, which is
    beneficial designed for my knowledge. thanks admin

  18. That is really attention-grabbing, You are a very professional blogger.

    I’ve joined your feed and look ahead to in search of extra of your magnificent post.
    Additionally, I’ve shared your site in my social networks!

  19. Hello.This article was extremely motivating, particularly because I was investigating for
    thoughts on this issue last Saturday.

  20. As the admin of this web site is working,
    no doubt very quickly it will be famous, due to its quality

  21. Outstanding post however , I was wondering if you could write a litte more on this subject?

    I’d be very thankful if you could elaborate a little bit more.

    Appreciate it!

  22. Why people still use to read news papers when in this technological globe everything is available on net?

  23. Thanks for every other informative site. Where else could I
    am getting that kind of information written in such an ideal approach?
    I’ve a venture that I am just now running on,
    and I have been on the look out for such info.

  24. Thanks for sharing your thoughts on penis improve. Regards

Leave a Reply to Luminous Satin Skin Cream Cancel reply

Your email address will not be published.