DNA of Success – Need for Structure
For any company to continuously grow, there is a need for structure. Structure assists in providing guidance and clearness on human resource issues. Structure lays out the official reporting relationships that control the workflow of the company. Without structure, it can be challenging to understand who has full responsibility for what. Small business owner, David Ingram, reports that “Organizational structure improves operational efficiency by providing clarity to employees at all levels of a company.” Structure within the workplace lays out a clear roadmap, allowing companies to create employee advancement tracks.
Structure within a company helps streamline business operations. Structuring business functions into departments eliminates similar business functions from being completed by multiple departments. Organizational structure improves a company’s decision-making process by implementing an information flow from frontline operations to managers and an information flow from management down to employees. Company structure allows your company to operate in multiple locations because owners are able to create a management chain to ensure all business locations are operating in accordance with the company’s standard procedures. Structures help outline employee tasks and help them to know which manager oversees them. When an employee understands the structure of the company, they are able to work more efficiently. Most importantly, structure opens up time for the company to spend more time focusing on customer service, which then allows a company to also focus on increasing sales revenues and profits by focusing on consumer needs and wants.