IMPORTANCE OF ORGANISATIONAL STRUCTURE FOR A STARTUP

?The Organisational Structure of many companies is very triangular. A traditional "org chart" is like a pyramid, showing a few influential people at the top of the organisation.

?Your Organisational Structure doesn’t?have to be the same.

?What is Organisational Structure?

?An Organisational Structure is the way a company or organisation is built. These can be different management levels. Or you can do it by area, using different industries and departments. Every company and team has an organisational structure, even if it's not formally defined.

Organisational Structure is primarily about decision-making power, information flow, priorities, and resource allocation.

?Key elements of Organisational Structure

?Regardless of the size of your Startup, certain aspects of workplace decision-making and processes should be clarified. Each Startup must nominate at least the following:

?1.???Work Specialisation -?A clear job specialization allows you to make the most of your talents. It helps to clarify personal responsibilities and success criteria and prevent resource shortages.

2.???Chain of Command -?This will give you clear direction on who to ask for help. When employees in other departments need to check the status of cross-functional projects, they can easily find out who is driving the project.

3.???Sectorization and Compartmentalization -?Dividing people into departments creates teams of people organized around specific types of work. People in these departments often have common skills.

4.???Control Range -?If a manager has many direct reports, the team is often split into smaller departments.

?Importance of Organisational Structure in Startup

?An Organisational structure provides a clear Organisational chart that helps companies track their human resources. If your business is small, it's easy to lose track of what everyone is doing.

In addition, the Organisational Structure helps identify skill and support gaps within the organisation. People's roles are becoming more specialized and individual teams are getting bigger. Rethinking work distribution eliminates duplication and reflects business priorities.

?Type of Organisational Structure

?There are many different types of organisational structures, each with advantages and disadvantages. The most common are:

1. A?Functional Organisational Structure?is ideal for small businesses as it allows for a clear decision-making hierarchy.
2. A?Departmental Structure?is ideal for large companies as it allows for greater specialization. For example, a global company may divide its operations into multiple regions.
3. A?Matrix Structure?allows employees to work on both functional and project teams and be structured differently.
4. Freelancers, various groups or associations collaborate in a?Network Structure. Each acts as a separate functional team, but may share an overall organisation.

?The best way to choose an Organisational Structure for your business is to first assess your business needs and goals. From there, you can match these requirements to any of your common organisational structures.

?When deciding on an Organisational Structure, it is important to keep in mind the following four factors:

?1. Service

The structure you choose depends on the type of business you run, based on what you do and where you need to prioritize.

To build an effective organisation, you need to know which team her members facilitate the work of those in the field and which employees support the leader.

?2. Size

Company size is very important in determining the formal organisational structure. Smaller companies often have a greater overlap of roles. They have a less formalized structure. This lack of standardization can create some challenges, but it also gives teams the opportunity to grow rapidly.

On the other hand, large organisations with more centralized and formal structures tend to grow faster. Why? It's easy to know where to find information and who to talk to in turn.

?3. Stage

In the early stages, SMEs not only benefit from an informal structure, but they also don’t need it. As workflows emerge, patterns emerge, and problems arise, these insights can be reflected in formal processes. The need for reporting relationships and departmental structures arises from system needs.

?4. System

More staff means a clearer definition of when, how and why teamwork happens. Building a healthy organisation is about more than just working well for Startups. That means creating plans to support employee and workplace growth. Given the type of government that exists today, you can choose the appropriate organisational structure.

To know more: ?https://olivegreenconsulting.com/organization-transformation/