Project 4
Determine Your Organization's Structure: Gather and Analyze Information
After selecting the most appropriate legal form of business, you’re messaged by one of your colleagues in the collaboration, Roza Worrell:
INBOX (1 NEW EMAIL)
From: Roza Worrell
To: You
I’m glad you finalized your decisions on the legal form for the new business. Now we need to decide on the organization structure and design that would work best for our goals. We need to determine what departments the organization will need, who will report to whom, how many levels we will have in our organization's hierarchy, and how many individuals will report to each manager (span of control).
We really need a structure that will promote communication and coordination of efforts across the entire organization. We also need to consider whether or not we should be outsourcing the HR function.
After formulating your thoughts, you may also need to do some additional research on the web and in the library to enhance your knowledge for this presentation.
Thanks for all you’re doing to make this business a reality. Good luck in your final prep for the presentation.
Sincerely,
Roza
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/