An organisational structure is nothing but a well-dedicated pre-designed system which determines the flow of roles and responsibilities in an organisation. A structured organisation ensures the smooth functioning of the business.The organisational structure acts as abusiness tool. When a proper organisational structure is systemized, it helps in the delegation of work. An organisational structure through proper delegation will present a viable way to understand the activity flow present in an organisation. It also clearly explains to the employees about their position, duties and responsibilities.
Structuring a formal composition of an organisation can be done in many ways. Centralised and De-centralised modes of organisational structure are the most common ones. Centralised means that orders are from one central point and de-centralised means the power-sharing is on different levels. An exclusive organisational structure ensures the business expansion is resourceful and functional. A defined structure assures that business growth is on the right track toward the right systems and processes.
The organisational structure can be on the basis of function, process, team-based, hierarchical etc.
- Functional: In such an organisational structure, the structure formation is based on the different working backgrounds laid out in the company. Every department manages its related area independently. A functional organisational structure encourages specialisation, better decision making, and scalable for huge-sized companies.
- Process-based: This type of organisational structure means keeping in mind individual processes and how they interact with each other. It is an easily adaptable method and helps improve the efficiency of business services.
- Team-Based: As the name suggests, the grouping of employees into different teams. This will help engage employees of different levels to come together and then bring about a better correlation between each other.
- Hierarchical: This is the most common type of organisational structure. It is shaped like a pyramid and flows from top to bottom with a supervisor handling each department.
Profito Global invest its time in a detailed study of the activities of the organisation and decide the structure for implementation accordingly. The nature of work, different services involved, and the size of the company are some of the factors crucially considered by Profito Global before deciding on the right organisational structure. The organisational structure designed by Profito Global is well-defined and helps the hiring process to become an easy task for the management. The management will be able to rightfully hire the right candidates for the right position.
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Can organisation structure help in structuring human resources?
Yes, a structured plan of organisational structure will help in talent management, recruiting, performance analysis, manager leadership training etc. Therefore, a proper organisational structure will guarantee efficient human resource management.
How does organisational structure help in Human Resource Management?
- Helps in the segregation of functions and people differently. Positions and profiles are well-defined. This will bring about synchronized functioning of the business organisation.
- When different levels are decided it helps in efficient decision making concerning the salary structure of each employee. The performance can be evaluated easily and increments can be decided accordingly.
- Helps in hiring the right candidates with the right profile.
- Aids in controlling the chaotic environment which is otherwise present in the business organisation.
- An employee can track their growth and effectively understand the next level they are achieving.
What are the steps taken to create an organisational structure and the time taken to design such an organisational structure?
- To Identify the Activities
- Understanding the vision and career growth of the people involved.
- Analyze the connectivity and interlinking of different activities in the business.
- Astute delegation of work within the organisation
- Assessment of the working of the implementation of the above principles.
The time taken to study the organisation will directly depend on the size of the organisationand a deeper understanding of the scope of business. Each business and its needs are unique, so, it might be impossible to fix a common deadline which is acceptable uniformly.
What is the best organisational structure?
No hard and fast rule declares one type of organisational structure as the best one. It depends on the nature of the business and the type of industry it works in.
How does organisational structure help in the management of the business?
- Management could understand the functional expansion of the business.
- Internal controls and revenue generation can be well managed by identifying the specific areas.
- A line of authority can be established.
- There is better clarity on the activity flow within the business.
- Task allocation becomes seamless and devoid of any confusion.
- The adaptability of the business becomes easier and more relevant.
- Contributes to a better understanding of the business and thereby reduces the effective cost of learning and ensures better productivity.