how_to_design_an_organization_structure

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How to Design an Organization Structure

One important element of ensuring the efficient operation of a

business is determining the functions of its workers. Especially in the

case of new ventures, an important first step is to determine thepurpose of the business or organization. Once that has been

accomplished, the emphasis should be on designing an efficient

organizational structure for a company or business.

Instructions

1-Develop a clear mission statement for the organization. Focus the

organization structure around the mission statement. The missionstatement should include a strong emphasis on encouraging good

communications between workers at every level as well as inspiring

innovation and ensuring efficiency.

2-Decide whether the organization structure will be centralized and

formal or decentralized and informal. For centralized and formal

organizations, the organization structure takes more of a top-down

approach with strictly defined work roles. For decentralized andinformal organizations, there is more of a cooperative approach with

workers often performing a wide range of functions.

3-Determine the nature of the organization structure based on the

mission statement and the formality of the organization structure.

Organization structure can be department based or based on a

particular project or process. Department -based organization

structure is often divided into line functions (such as manufacturing)and staff functions (such as human resources).

4-Design the overall chain of command for the organization. If there

is a single overall director or leader, determine the title for that role.

If there are dual or multiple leaders, divide the overall company

function between the various roles in a way that makes sense for the

particular organization.


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