What are organizational structures in business? Organizational structures are very important in the business world. They are the set of guidelines that tell employees where to go and what to do. Business structures are also used to help employees know how their work fits into the big picture of a company.
For example, an organizational structure might be that employees are given a certain job title. They are then responsible for doing a certain type of work.
Businesses are all different and have different needs. So it’s important to know what your company needs in order to best function. The organizational structure of a business is what it looks like on the inside. The structure of a business can be as simple as one person managing everything. It may also be as complicated as an entire company with many employees.
What is the legal structure of a business?
Starting a business involves more than just having a great idea. It’s important to understand the legal structure of your business and how it will impact your operations.
The main legal structure of a business is a sole proprietorship, partnership, or company.
The legal structure of a business can determine what kind of taxes you pay, and how many employees you can hire. It can also determine the extent of personal liability for debts and lawsuits. Understanding the different types of legal structures available is essential for making sure that your business is set up correctly from the start.
How are Businesses Organized?
Identifying the departments your business would need. This, in turn, will help you to assess the skills and expertise required to run your business.
As a business owner, check the skills you bring to your business. This will help you to know the skills that you need for your business. Thus, you would be able to build a team and know what role that team member would function in. Put your team members into the right department that relates to their skills.
Structure of Business Departments
How to create an organizational structure for a small business? Let us look at the possible departments your business may need. To ensure a smooth running, you should include different departments and delegate work to the relevant department. These various departments include IT/engineering, sales, marketing, operations, and production.
IT/Engineering Department
The IT department handles technological procurement. It ensures the proper functioning of computers and other office equipment. They are also responsible for proper network functionality. Along with the proper function and smooth running of the business website.
Job Roles
Software Engineer – assesses and sets up the best technological solutions.
Network Engineer – to set up, maintain and upgrade communication systems. They are also responsible for ensuring computer systems’ security. This department takes care of backing up data and recovering lost files.
Web Developer – to build and maintain your website.
Technical Support – to check, maintain and troubleshoot all computerized systems.
Sales & Marketing Department
This department involves the following functions;
Sales & Distribution Department– handles the sales and distribution of products or services.
Research Department – is responsible for conducting market research. Such as customer analysis and monitoring market trends and competition activities.
Promotion Department – decides on the promotion methods, and arranges advertisements and advertising media for the products.
Job Roles
Sales & Marketing Manager – oversees the strategic direction of all marketing activities.
Research Manager – is responsible for carrying out various research.
Production Manager – develops tools and processes to aid the marketing campaigns.
Marketing Executive – is responsible for developing and overseeing promotion using various marketing channels, whether digital or online.
Operations Department
The operations department consists of various departments. These sub-departments influence the day-to-day running of the business.
Legal Department – handles legal issues. Customers deal with the legal departments when they file complaints against the business. The legal department includes qualified lawyers and other law professionals
Job Roles
Attorneys at Law – take the lead in carrying out all legal duties.
Legal Assistants – support the attorneys at law.
Accounting & Finance Department – deals with the money coming in and going out. The department budgets for all the departments and distributes the cash. At the end of each financial year, they prepare statements for the company. These statements showcase the liquidation of assets and profit.
Job Roles
Accounting & Finance Manager – is responsible for analyzing the business’s financial information and preparing financial reports.
Bookkeeper – is responsible for handling financial records. Prepare financial statements and reports, such as the profit and loss statement and balance sheet. The bookkeeper also pays bills, and makes bank deposits.
Payroll Manager – pays employees and compiles payroll information. Manages payroll preparation, completes reports, and maintains payroll records.
Human Resources Department – handles recruitment. It deals with the management of the people in the organization and policies.
Job Roles
Human Resource Manager – performs job-related research. Develops job descriptions, interview, and hire job candidates. Set up and encourage employee training and so on.
Production Department
Depending on the type of business, it may also have a production department. It involves converting inputs to outputs and developing new products.
Job Roles
Production Analyst – helps plan analyze and manage the execution of efficient processes for manufacturing activities.
Production Maintenance Engineers – responsible for the maintenance and repairs of production equipment.
Closing: Business Structure Explained Simply
A business organization structure is the way in which a business is structured. This organizational structure organizes the workforce and determines how many layers of management are present.
Some business organizations are hierarchical, while others are flat. The different types of organizations include single-unit, multi-unit, project-based, and decentralized.
In a single-unit organization, there is only one owner who makes all the decisions. In a multi-unit organization, there are multiple owners who make decisions for the company.
Project-based organizations are often used for specific projects and then dissolved after the project is completed.
A decentralized organization has no single owner or head. Rather, it is owned by a group of people who make decisions for the company.
An entity is set up to sell goods or services and receives an income in return. After having a business idea, one must give it good forethought before setting it up.
Identify the purpose of your entrepreneurship idea and the problems it would solve. You may want to start a service, manufacturing, merchandising, or e-commerce.
Businesses can be set up as sole proprietorships, partnerships, or cooperation. Once your startup is set up, you must structure it for it to operate as a proper institution.
The usual main departments in a corporation are IT/engineering, sales, marketing, operations, and production.n,
