Designing a successful organizational structure for your small business involves analyzing the work that needs to be done and setting up a hierarchy that ensures work flows smoothly from one process to the next. An effective organizational structure allows you to control business processes, assign accountability, enable rapid responses to opportunities and threats, deliver on promises, empower employees to make decisions and beat out the competition.
When you have a complex business, create an organizational structure divided into multiple departments or functions. If your industry requires a great deal of formality, design your organization with a clear hierarchy. If your employees have extensive experience, enable them to participate in influencing decisions. To establish successful communication, allow personnel at every level to flow information through the organization. Create a functional, divisional or other reporting structure based on your type of environment.
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