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How To Develop An Organization Structure - Chron PDF

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12/7/2017 How to Develop an Organization Structure | Chron.

com

How to Develop an Organization Structure


by Tara Duggan
Developing an organizational structure involves defining the framework around which
your business operates. By defining how the organization works, you more effectively
choose leaders and make effective decisions. A clearly established structure helps
employees resolve disputes and work together to achieve strategic goals.

1. Determine what type of governance you need to make decisions. Identify the roles in your organization. Typically, an
initial steering committee writes the business plan, obtains funding and develops the first proposals. Identify a leader to
coordinate, inspire and support the work. Identify a board of directors to coordinate activities, make contacts, network with
other industry leaders and clear the way for the organization to meet its objectives. Small groups tend to require a less
formal structure. As the organization grows, the need to explicitly show the hierarchy in an organizational chart helps
everyone understand who makes decisions. Formal structures tend to help an organizations members act more quickly.

2. Establish rules by stating how formal and informal groups operate within the organization. For example, committees
typically use Roberts Rules of Order to conduct meetings. Rules make up an organizations culture. By documenting
operating procedures, you can minimize misunderstandings and confusion, especially if you work in a culturally diverse
environment. Groups formed to resolve a single issue may not need a formal structure but large complex organizations
typically need clear rules and authority.

3. Distribute work. Establish task forces and action committees to carry out activities. These people make specific changes
to policies and practices in order to achieve their goals. Define conditions when a temporary support committee, or
collection of volunteers, respond to organization's needs. Locate other organizations trying to solve the same problems and
learn from their experiences. As you learn more, share your expertise as well.

4. Evolve your organizational structure over time. As your organization grows, differentiate your functions into divisions that
allow its members to produce products and services. Add divisional leadership to manage the functions necessary to
streamline the specific needs of that particular division. For example, as your organization grows, establishing a training
function for each division ensures that members of each division receive organizational training and role-specific guidance.
Other divisions typically specialize in product marketing development, marketing and geographic sales. Avoid
communication issues by maintaining a matrix management strategy in which members become accountable for divisional
and functional success. Reduce communication problems by decentralizing authority. By distributing decision-making
throughout the organization, managers at lower levels make decisions faster and tend to be more motivated and
responsible.

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