In building a business or business, whatever it is, it is important for you to understand the organizational structure.
By understanding it, you can develop the organizational structure of the company and its duties in an ideal, clear manner, and in accordance with the responsibilities of each section.
So, your company’s performance will also be more effective because each structure has clear and directed tasks to achieve company targets.
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This article will answer your questions about the company’s organizational structure, starting from its definition, functions, benefits, and examples. Without lingering any longer, immediately refer to the following discussion!
Definition of Company Organizational Structure
Broadly speaking, the company’s organizational structure is a level or arrangement that contains the division of tasks and individual roles based on their position in the company.
Generally, the company structure is arranged in the form of a chart or hierarchical line and contains a description of each company component.
With the establishment of a corporate structure, each Human Resources (HR) within your company has its own role and function.
The main goal is to make it easier for the company in terms of dividing the tasks and responsibilities of each individual in running a company or business.
The organizational structure helps the company to place potential and competent individuals according to their fields and expertise.
Successful companies generally have an organized and clear organizational structure, meaning that they are in accordance with their functions.
That way, the company’s wheels run well and have the potential to develop and achieve the company’s vision or goals.
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Functions of a Company’s Organizational Structure
How important is the organizational structure in a company? The answer is very important, yes.
This is because the organizational structure serves as a guideline for a company related to management to develop strategies and achieve the targets that have been set.
Without a clear organizational structure, it is certain that the company will find it difficult to develop and has the potential to crash.
For more detailed information about its function, see the explanation below!
1. Describe the Role of Each Individual in the Company
Every individual in a company, in this case, is an employee, of course, must have roles and responsibilities that must be carried out.
The position given must also be in accordance with the expertise and potential of each employee.
This is included in HR planning. where behind the position given, there are obligations and authorities that must be carried out and accounted for.
2. Clarify the Flow of Performance Relationships
The organizational structure also functions so that each employee knows the flow of performance relationships clearly.
Starting from the limits of responsibility for each position to the right time, method and person to collaborate to facilitate performance implementation.
3. Describe job descriptions
If the tasks of each component are broken down with a clear description, it will certainly help employees and superiors to achieve their goals.
Employees can more easily formulate strategies and collaborate because they can focus and concentrate on areas that suit their expertise.
Meanwhile, superiors can more easily supervise (monitor) and supervise employee performance.
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Benefits of Company Organizational Structure
As you know that not all companies implement or even have an organizational structure.
If your company is among those who haven’t implemented it yet, try to reconsider because there are many benefits to implementing an organizational structure within the company.
What are the benefits?
1. Establish Good Communication and Collaboration
Communication and collaboration between employees and teams will be better if a good organizational structure is implemented.
You will find it easier to give the right and appropriate division of tasks to each team member.
The organizational structure is also useful for avoiding duplication of work and assisting in decision making.
2. Operational Efficiency
The operational system and all needs can be met more effectively and efficiently if the company has a clear and organized organizational structure.
In the description of the organizational structure, of course, there are procedures or operations for each task so that each team can optimize its performance.
3. Minimizing Conflict Between Employees
In a work environment, conflict is common. For this reason, companies need to have an organizational structure to minimize this.
The organizational structure can help employees to focus on their respective parts of the job, thereby reducing the risk of disputes.
4. Increase Employee Productivity
If the organizational structure and its descriptions and guidelines are conveyed properly to employees, it will further increase their self-confidence.
That way, the work done will be better which of course has an impact on increasing employee productivity.
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Examples of Positions in the Company’s Organizational Structure
In the organizational structure of a business or company for several positions or positions. Positions in the organizational structure vary, depending on the scale, needs, and type of your company.
However, there are at least four positions that always exist in the organizational structure. Here’s an explanation!
1. Directors
The person who has the duty and authority to manage a company, especially a limited liability company, is the board of directors. This position is in the form of a line of individuals who have an important role in the organizational structure.
The reason is, they have the authority in terms of making decisions on the continuity and development of the company.
Such as the type of business to be developed and what products to produce.
You could say the board of directors is the determinant of whether or not a subsidiary company develops.
In addition to making decisions, the board of directors also has the authority to regulate the schedule of activities in the company.
Generally, a company has one person as the main director (president) , three people as vice president directors, and six directors.
2. Manager
The company manager is a person whose role is to integrate the potential and characteristics of employees in order to achieve company goals.
Starting from providing guidance and direction, making policies, monitoring, and supervising, to increase company profits.
Generally, each team has a manager as the main manager of the division, for example marketing manager, personnel manager, finance manager, and others.
A manager receives input and reports from the team leader and members from each division under him, then communicates them to superiors.
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3. Department or Division
In an organizational structure there are several departments or divisions which of course are in accordance with the type and needs of the company.
This section is generally led by the head of the department or division head. You might as well call it the term team leader.
Some of the divisions that usually exist in every organizational structure of a company are marketing, production, administration, personnel, and so on.
4. Administration and Warehouse
Administration and warehouse sections are generally divided into several sections such as accounting, CMT (Cut, Make, Trim), and cashier.
This position plays a role in managing and analyzing company finances by creating financial reports in the company’s financial reporting application that contains records of expenses, income, and so on.
In managing all the company’s financial activities, an accountant can use manual methods such as using excel and documents, but can also do it in a more automated and accurate way such as using accounting software .
This position is also responsible for the company’s inventory, from incoming and outgoing inventory to stock maintenance which will be more easily managed with an inventory application .
So, that was the discussion about the organizational structure of the company that you need to know and understand. Starting from the definition, functions, benefits, to examples of positions.
Hopefully this article is useful for those of you who are looking for references to compile or revise the organizational structure of your business or enterprise.