Structuring a company simply means creating a framework which facilitates its proper functioning. One should bear in mind three key issues-tasks, rules and regulations and governance which form the cornerstone of structuring a company. There are a number of tips which offer ideas on how to structure a company as we will explore in this article.
1) Form a work force committee
Structuring a company is a process that calls for intense deliberations and a lot of critical thinking among members of a company. In this committee, questions should be raised such as the objectives of the company. If in the process it is realized that the company has a wide array of objectives, it will be vital to have a multidimensional structure.
2) Consider the degree of formality required.
The extent to such a formality is needed in an organization is dependent on a number of factors. They are:
· If the company has just started operating, it is advisable to have a structure that is less formal.
· If employees are self-motivated the company structure should create a flexible structure that allows them to make decisions concerning how to perform their duties
· Where the company has new inexperienced leaders, the degree of formality increasing necessitating a rather complex and centralized structure.
· Working relationships- more often than not, individuals working in a new company not have prior working relationships which means that a company must be structured in a very formal way at this stage. As the individuals continue to interact with one another, the structuring can be changed to allow them the freedom to make some policies within the company.
3) The size of the company
A large company will require to have a relatively complex structure with a very formal hierarchy to enable it to attend effectively to all the set targets. In such a scenario, a company will require various individuals such as a board of directors, a CEO, heads of departments and communications personnel to hand the diverse roles. A small company would employ a simple, informal structure and only need a few people to spearhead it.
4) Number of tasks to be performed
Division of labor and specialization is inevitable where a company has many tasks to be done. In this case, a company will have to eliminate rigid procedures and focus less on the chain of command. This is necessary in order to ensure that job delegation in different facets of the company becomes an easy process and less time is spent on unnecessary consultations with the top level management.
5) The need to deep root change in a company.
A company is always in a lifelong process of development and learning. Thus, change is mandatory. This demands that a company structures itself in a way that accommodates these adjustments. For example, the technology in this era is one that is very efficient and has created virtual organizations. This is a clear indication that a company can operate online, anywhere without individuals having to meet all the time. This in turn calls for a company structure that can cope with future developments that entirely change the existing structure.
In summary, structuring a company is of essential in creating organizational commitment and unity among individuals as well as giving them specific procedures on how to conduct tasks leading to the smooth flow of operations.
Today’s post sponsored by the phoenix personal injury lawyers at Torgenson Law!