The scope of the word 'organization' is very wide. An organization can be a company, a business, or even a school or a college. A small business will need a simple structure, while large multinational companies or universities with several colleges under its control would need a large or complex one.
Whether small or large, the first step in forming an organization is to set up a management team.The management team includes the chairman/promoter of the organization, board of directors, and non executive chairman. The mission and the vision of the organization should be defined by the management.
A primary school or a start-up private limited company is a good example of a simple organizational structure. Apart from the management, these organizations have fewer employees as compared to the big organizations. Their main advantage is the simplicity in caring out the day-to-day activities.
Like large organizations, small companies also have marketing department, personnel department, legal advisers, and an accounts department. Generally, small organizations have few branches and less annual turnover than the large ones. The ultimate power is with the head, who has the final say on any matter related to the company.
The first step involves explaining each employee, what his role will be. Employees will not be able to deliver their best, unless they are completely aware of their work and expectations. Another important thing is a system of accurate evaluation of the employee performance without being partial or unjust to any employee.
Favoring some employee over the other without authentic reasons can be harmful for the company's future. There should not be concentration of power in the hands of a few executives, as this may lead to grouping and reduced quality output. Decide the number of employees needed in a particular department and recruit only those many employees.
Satisfying the needs of the employees is important as this retains the faith of the employees on the employers. The basic idea is to promote people with good leadership skills. Presence of employee grievance cell under the supervision of the HR department can assure the employees of their security in terms of payment and position in the company.
However, the departmental heads should have the freedom of taking certain decisions on their own and interference of people who are in no way connected to a particular decision-making process should be strictly prohibited.
Regional managers should be appointed for managing the affairs of a particular territory. As per the descending order, regional managers are followed by branch managers, clerks and assistant clerks.
Transparency in promotions is the highlight of a good organizational structure and design. Promotions and increments should be made strictly on the basis of merit to keep the employee faith in the organization alive.