Project 4: Structuring a New Business Venture

Learning Topic

Organization Structure and Design The structure of an organization plays a pivotal role in how everyday tasks are handled, in

how resources are allocated, in employee supervision and reporting, and in coordination

amongst employees. It impacts employee behavior, demeanor, and psyche in ways that are

still being studied by theorists today. Organizational structure may play a role in employee

motivation and even productivity.

A primary factor in creating and managing a new business involves choosing the best

organizational structure for it. Some types of business are better suited for a clear

hierarchical structure, while others are more apt to work within a flatter organizational

structure, with fewer or even no levels of authority. From time to time, a business may

reorganize, as online shoe retailer Zappos did when moving from a hierarchy to a flatter

"holacracy." There were reportedly mixed results spurring from this major shift in business

structure (Reingold, 2016).

As the Zappos case and others reveal, business structure plays an integral role in

organizational success. Thus, one should clearly define the initial organizational structure

at the outset of starting a new business and monitor it through the business life cycle,

tweaking it and shifting it as necessary.

References

Reingold, J. (2016, March 4). How a Radical Shift Left Zappos Reeling. Retrieved February

07, 2017, from http://fortune.com/zappos-tony-hsieh-holacracy/

Structured for Success: How the Structure of Today's Professional

Organizations Are Changing

(https://leocontent.umgc.edu/content/scor/uncurated/mba/2218-

mba630/learning-resourcelist1/structured-for-

successhowthestructureoftodaysprofessionalorganiz.html?

ou=770958)

Creating an Organizational Structure

(https://leocontent.umgc.edu/content/scor/uncurated/mba/2218-

mba630/learning-resourcelist1/creating-an-

organizationalstructure.html?ou=770958)

Organizations and How They Grow

(https://leocontent.umgc.edu/content/scor/uncurated/mba/2218-

mba630/learning-resourcelist1/organizations-

andhowtheygrow.html?ou=770958)

Organizational Structure

(http://go.galegroup.com.ezproxy.umgc.edu/ps/i.do?

id=GALE%7CCX3273100220&v=2.1&u=umd_umuc&it=r&p=GVRL

&sw=w&asid=3211a62132e2d80d970e869037062b3c)

Organizational Chart

(http://go.galegroup.com.ezproxy.umgc.edu/ps/i.do?

id=GALE%7CCX3273100216&v=2.1&u=umd_umuc&it=r&p=GVRL

&sw=w&asid=29bf0e9ec292733348f123cd627871d4)

A Flexible Organizational Structure as a Way of Knowledge

Management in SMEs (http://ezproxy.umgc.edu/login?

url=http://search.ebscohost.com.ezproxy.umgc.edu/login.aspx?

direct=true&db=bth&AN=99225104&site=eds-live&scope=site)

© 2023 University of Maryland Global Campus

All links to external sites were verified at the time of publication. UMGC is not responsible for the validity or integrity

of information located at external sites.

Resources