How to optimize your organization structure

Organizational structure of the company. What could it look like? When a company is growing larger, it is worth introducing an organizational structure to ensure its proper development and good functioning. Thanks to this, you can manage the company more efficiently. How to introduce the organizational structure of the company?

Typical problems of companies today:

• increase the efficiency of our job structure and look for savings in our work organization.

• do not know how other companies build effective levels of positions.

• use the experience of other companies and optimize our way of working.

• reduce the costs and the number of positions in the company and we need support in preparing and going through this process.

Implemented solutions:

• analyze structures and identify their inefficiencies, and then optimize them by combining functions, reducing unnecessary management levels or organizing tasks in a new, more effective way;

• simplify and optimize the levels and structures of executive positions;

• prepare recommendations for changes in the structure of positions as part of a restructuring planned in the company;

• develop solutions based on the analysis of the specificity and situation of your company and examples of the most effective structures from other companies;

• prepare analyzes and solutions as well as help managers go through difficult changes during meetings and workshops.

What if you are planning to implement a new strategy?

The current suboptimal organizational structure may significantly hinder this task. The implementation of the strategy may also fail at all. First, it is necessary to update the operating model, including the organizational structure.

Why might you have difficulty making changes to your organization?

• People don't like changes.

Convincing employees to new solutions requires consistent use of tools in the area of ​​change management.

• Employees may feel unsafe.

Handing over at least some responsibilities to others may be perceived by some as a threat. Of crucial importance will be the skillful answer to the question of what benefits the planned change will bring.

• Some people believe that if something works for a long time, it is not worth changing.

It takes courage to refine the operating model. Changes need to be introduced when they are an opportunity, not a necessity.

Communication - implementing changes

Introducing an organizational structure is not an easy task. Although it may contribute to the fact that the company will be managed more effectively, it is not worth focusing all attention on introducing only organizational changes. You have to run your business all the time so that it doesn't hurt your customers.

What is an organizational structure?

The organizational structure is the system of positions and organizational units in the company. It is also the systematization of the rights and responsibilities of specific positions. Each organizational structure has several basic elements:

• organizational regulations, i.e. a document that regulates order in the company, define the competences of individuals;

• job description - includes requirements for people who hold specific positions, as well as the scope of duties;

• organizational chart - is a graphical representation of the company's structure.

How to create an organization chart?

Before we start creating an organization chart, there are a few rules to apply:

• the principle of purpose limitation - what are the goals of the company and they can be divided into smaller ones;

• the principle of minimum complexity - the point is to make the structure as simple as possible;

• the principle of the best use of human potential - the idea is to match the best individuals to specific cells;

• the principle of unity of management - it consists in the fact that each structure should have only one manager who gives orders;

• the principle of adaptation to external conditions - the structure of the company should fit the nature of the market;

• the principle of rational supervision - a team with a manager should not be too small or too big.

How to design the company's organizational structure?

The most important thing when creating an organizational structure is to design it well. In order for the design not to be too time-consuming, it is necessary to design the most important work stations and establish their hierarchy, and then assign goals and tasks to each cell.

The most common organization charts are based on a flat, linear, or functional structure.

Planar structure

In a flat structure, there is only one manager to whom other employees report. This structure allows employees to be highly independent and information can be transferred quickly. The flat structure also allows you to save on staff maintenance costs. The most serious drawbacks of such a system include low efficiency related to the centralization of power and knowledge in a single manager. It is also more difficult to stay motivated in the team, because there is practically no possibility of promotion.

Linear structure

The linear structure is that there are many managers, but each is responsible for a narrow plot in the company. The advantages of such a system include the possibility of a quick reaction, professional decision-making, and, above all, a clearly defined scope of responsibility. The disadvantages include difficulties in establishing the scope of competences between employees.

Functional structure

The specificity of the functional structure assumes that each department is managed by specialists, and each employee has more than one manager. When a problem arises, it is reported to the appropriate specialist. The advantage of this solution is the reduction of overhead costs, the possibility of quick decision making, and easy control. A disadvantage is the problem of access to information, as well as the possibility of competence disputes.