But which to use?
For example, in this structure, a marketing manager may report both to the functional marketing director and the country director of the division he or she works in. The advantage is that the organization focuses on divisional performance whilst also sharing functional specialist skills and resources.
The often serious downfall is its complexity — effectively with two hierarchies, and with the added complexity of tensions between the two. Network Structure — Often known as a lean structure, this type of organization has central, core functions that operate the strategic business.
This structure is very flexible and often can adapt to the market almost immediately. The disadvantage is inevitable loss of control, dependence on third parties and the complexity of managing outsource and sub-contract suppliers.
Making Organization Design Decisions Given the many choices of structure, how do you go about making organization design decision for your business? Different organization structures have different benefits in different situations. What matters is the overall organization design is aligned with the business strategy and the market environment in which the business operates.
It must then have the right business controls, the right flexibility, the right incentives, the right people, and the right resources. Here are just some of the many things that you can consider when thinking about the structure of your organization. Strategy — The organization design must support your strategy.
If your organization intends to be innovative then a hierarchical structure will not work. If however, your strategy is based on low cost, high volume delivery then a rigid structure with tight controls may be the best design.
Size — The design must take into account the size of your organization.
A small organization could be paralyzed by too much specialization. In larger organizations, on the other hand, there may be economies of scale that can be gained by maintaining functionally specialist departments and teams. A large organization has more complex decision making needs and some decision making responsibilities are likely to be devolved or decentralized.
Environment — If the market environment you work in customers, suppliers, regulators, etc. Controls — What level of control is right in your business? Some activities need special controls such as patient services in hospitals, money handling in banks, and maintenance in air transport whilst others are more efficient when there is a high degree of flexibility.
Incentives — Incentives and rewards must be aligned with the business's strategy and purpose.IEEE has a dual complementary regional and technical structure - with organizational units based on geography and technical focus. Writing your business plan.
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Matrix Structure – In a matrix structure, people typically have two or more lines of report. For example, a matrix organization may combine both functional and divisional lines of responsibility. For example, in this structure, a marketing manager may report both to the functional marketing director and the country director of the division he or she works in.
Sample business plan company description. We Write Business Plans! Looking for Seven regional sales managers will be contracted as commissioned resellers and reporting to the Director of Business Development.
Organizational Structure. Management Team. The OBRA e-z management team consists of the President and . A business plan is a written description of your business's future, a document that tells what you plan to do and how you plan to do it.
If you jot down a paragraph on the back of an envelope. How to Start a Home-Based Senior Care Business: *Develop a winning business plan *Market your unique services to families *Create a fee structure care manager (Home-Based Business Series) Paperback – January 6,