People Organization

 

Figure 1 -Organizational structure

Importance of people organization

 

There are several factors that differentiate small-business operations from large-business operations, one of which is the implementation of a formal organizational structure. Organizational structure is important for any growing company to provide guidance and clarity on specific human resource issues, such as managerial authority. Small-business owners should begin thinking about a formal structure early in the growth stage of their business (Ingram, 2019)

 The official reporting relationships that define the company's process are laid out in the organizational structure, which guides all professionals. A detailed description of a company's structure makes it easier to add new employees and provides a suitable environment for progress.

 Formal Structure's Significance

Employees may find it difficult to decide who they formally report to in certain situations if there is no formal organizational structure in place, and it may become confusing who has full liability for what. Employees at all levels of a company benefit from organizational structure because it provides clarity. Departments can perform more including good machines if they pay attention to the organizational structure, focusing time and energy on productive tasks. A well-defined structure can also serve as a road map for internal recruitment, allowing businesses to develop solid employee growth paths for access employees.

Figure 2- Flat structure

 

 

Organizational Structure Is Flat

 In a flat organizational structure, there are generally few layers of management. Front-line employees are empowered to make a variety of decisions on their own in a flat structure. In a flat organization, information flows from the top down to the bottom up, indicating that communication flows from top management to front-line employees and from front-line employees to top management.

 

Figure 3 -Tall structure

 

 

Organizational Structure which is tall

 

A tall organizational structure has several layers of administration and often ineffective administrations. Most operational decisions are made by managers in a tall structure, and authority must be obtained from several layers up before taking action. In a towering structure, information is transmitted are usually one-way – from the top to the bottom.

 Considerations

 Small businesses frequently lack a stable organizational structure. Employees in startup companies may be asked to execute a variety of duties that are not part of their official job descriptions, and many companies give their employees a lot of flexibility in making decisions. Aside from that, all employees in a business usually know who they report to, as the owner or partners are usually a single person or group. Before your organization becomes so large that your unstructured workforce becomes uncontrollable, it's vital to have a formal organization successfully.

Figure 4- benefits of People organizing

 

References

Ingram, D., 2019. CHRON. [Online]
Available at: https://smallbusiness.chron.com/organizational-structure-important-3793.html
[Accessed 12 november 2021].

 

 

Comments

  1. UnknownNovember 11, 2021 at 10:59 PM

    This is great explanation to understand about people organization thank you !!!

    ReplyDelete
  2. Sanjaya BandaranayakeNovember 12, 2021 at 7:49 AM

    Flat organisational structure is generally possible only in smaller companies. This structure improves employee involvement through decentralised decision making. In tall organisational structure employees responsibilities and their role are clearly defined.

    ReplyDelete
  3. Asitha DNovember 13, 2021 at 6:16 PM

    In organization right structure giving correct two way communication. If the structure is completed the conflicts can happen. Proper problem escalation & solving problems structure is very important. Secondly if structure is flat problem escalation speed also high. Then problem solving speed also high. It help to improve the productivity. In this article mentions the importance of flat structure also. Overall good learning experience. Thank you very much

    ReplyDelete
  4. Kamal NayanarangaNovember 13, 2021 at 9:19 PM

    Thank you Asitha for your valuable comment!!

    ReplyDelete
  5. Chandana HNovember 14, 2021 at 3:45 AM

    Well said Kamal. Segregated responsibility is equally important as team work to drive the performance in any kind of organization. Then chain of command in form of a structure either flat or tall, reinforced with a right job description is a vital element to create an ethical competition among teams in a performance driven organization. Hence, I totally agree with the content of your article.

    ReplyDelete
  6. Nuwansiri RathnayakeNovember 16, 2021 at 8:46 AM

    Organizational structure is most important for both small and large organizations. It's making better and clear way to take proper decisions and problem solving as well. Besides every employee are well understanding abut their job role and responsibilities. You are clearly explaining those points and really valuable.

    ReplyDelete
  7. Sandya December 12, 2021 at 10:06 AM

    People are the most important asset in organization. In your article you were able to give us a knowledge about structures in organization. Thank you.

    ReplyDelete
  8. Chularathna2021MBADecember 14, 2021 at 9:51 AM

    Your article points out that people organisation is better done in big business operations, and people organisation in small business operations is not done properly.Human resource management is the process of effectively managing people in a company. HR management aids in the alignment of employee performance with the organisations strategic goals. Furthermore, an effective HR management team can give businesses a competitive advantage. Good article thank you.

    ReplyDelete
  9. Buddhika JayarathnaDecember 15, 2021 at 6:56 PM

    Person-organization (PO) fit is defined as the compatibility between people and organizations that happens when at least one organization meets the needs of the other; they share core traits; or both. Examples of social need fulfillment, value congruence between individuals and organizations, personality matching between individuals and other members of the organization, and shared individual and organizational goals are included in this concept. Person-culture fit is another term for PO fit (Charles, 1991)

    ReplyDelete
  10. Naradha SenanayakeDecember 15, 2021 at 8:36 PM

    Startup companies may develop to medium or large scale as time goes by, and if there is no formal organizational management structure at that time, it may cause disputes between employees and the same will affect organizational performance at the end.Thank you for sharing.

    ReplyDelete
  11. E127918December 16, 2021 at 1:04 PM

    Your information is very interesting. Thank you for sharing. Because other resources like as money, machinery, materials, procedures, and markets cannot be purchased and utilized without human resources. These aspects are generated and utilized through people, as the human factor is responsible for the success or failure of any business, as people are the most important input and output. Even if an organization starts with no funds, it may become financially sustainable with the help of innovative, talented, industrious, and honest people, and I believe that there is no greater or more successful organization without people.

    ReplyDelete
  12. Sachini MahaulpathaDecember 18, 2021 at 4:21 AM

    It is important to have a proper organisational structure in an organisation to organise people. This is due to the fact that, when it comes to the approval process, if there is no proper structure within the organisation, it might sometimes lead to compliance breaches as well, if the approvals have not been taken from the right parties. A very good topic and an interesting read.

    ReplyDelete

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