Analysis Business Structure Every organization needs a structure to operate and develop. It is the configuration of authority positions and relationships within the business. The Business Structure is vital for a company’s performance and efficiency. It must be correctly designed and adjusted to the environment of the business.
In order for the company to achieve its purposes and respond to the constant changes in trends and demands, a more flexible structure is more suitable. * Hierarchy – a main characteristic of Business Structure It shows the levels of an organization and how the people are related to each other.In some companies there are many levels of management and high contrasts in authority. These are vertical structures which enable more rules and strict, official communication between the levels. This is a more formal structure because the decisions are taken in the high levels; however, managers often do not have all the information and connection from the lower levels because they do not communicate.
Current Situation: * many vertical linkages, limited communication between departments * five managers with weak cooperation insufficient task distribution and quality control * the structure does not satisfy the demand and company’s goals The structure of S&C has few levels of management and implements for strict control. However the departments are not related to each other, do not have good communication and the tasks are wrongly distributed. All this leads to failure in achieving the company’s objectives. The structure needs to be changed to improve operations. There is a necessity of Purchasing department for example. This is not a job of anyone or only the banqueting manager.
It is difficult for the five managers to have good overview of the whole working process - responsibilities of employees and tasks efficiency are hard to control. Simple processes like updating the team and the manager when ordering something are disabled due to the lack of structure. Furthermore the HR should be occupied with employees’ satisfaction and staff trainings. The current Structure of the C&S shows that Finance is working bellow HR.
Therefore many misalignments occur when processing invoices which proves the incorrectly structured departments and lack of supervision.Another aspect of adjusting the structure is to provide technology for better spread of information and communication. Desired Situation: * more horizontal linkages, meaning sharing tasks, face to face communication * departments enabled to share information easily thanks to structure and technology advance * more specialized management positions with good cooperation to follow and control all working processes in detail * responsiveness to environmental and demand changes due to flexible and effective structure * employees have all the necessary information for fulfilling their duties * efficiency of human resources Limited Liability Company LLC exists almost like a separate entity and cannot be personally held responsible for debts. Current Situation: * Owned by Board of Directors * Unable to maintain previous achievements, decrease in profitability * Unsatisfied BoD The LLC is a good option for the S&C. The lack of innovation and flexibility in the structure causes the company to disappoint the BoD.
The communication is not perfect because the company reacts slowly to changes in the environment and demand.Meetings with the BoD and periodical checks would improve awareness and aim of the company Desired Situation: * Environmentally adapted business structure * Completing objectives and performance indicators * Good, regular communication with BoD * Satisfied BoD * Objectives This is exactly one of the purposes of a business structure. To reach its objectives, every company must have appropriate structure. It should be coordinated with its goals and the methods for their achieving.
The structure has to enable efficient operations and good communication.Current Situation: * not reaching occupancy objectives * the company is not using its full potential, disregarding objectives and goals * no direction for the employees to follow The employees of S&C are working in an unclear environment. They have insufficient communication between departments and are focused on day to day task execution. They must be given the right structure and conditions to work and communicate efficiently. The objectives and goals of the company must be brought to their attention and they should be motivated to strive for them.
Desired Situation: * company is meeting the objectives * structure of the organization enables and supports the persuasion and achieving of objectives * awareness brought to employees about the objectives – direction of work, what to strive for * satisfied BoD * Duties This is another important aspect of the structure in a company. Every position must have clearly stated duties and tasks, so the employees know exactly what is expected from them and what they are responsible for.This should be carefully distributed, making sure that efficiency and quality are obtained. When this is clear and the employees know their tasks, it is easier for the managers to control and check.
Current Situation: * duties are not distributed correctly * employees work under unclear structure, they do not know what tasks belong to them and what not * employees not striving for goals, losing focus on purpose of their job * lack of control and efficiency The departments in S&C have duties which are not distributed properly.The employees must know their powers and duties. It is unacceptable that anyone could order and the stock control is poor. Employees’ tasks are unorganized; this is inefficient and leads to low quality, so the jobs should be divided more clearly.
The payroll should be processed by the Finance department not the HR. Stating the duties clearly would bring in structure and efficiency in all work processes. Desired Situation: * every employee is aware of its own duties better division of labor upon groups or teams that will focus only on assigned jobs * managers are able to follow quality and responsibility of employees’ work because there are clear duty outlines RESOURCES: Excerpt Daft; Daft, R. L. D. , 2006.
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