Business structure what is
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Business organizational structure
1. Organizational Structure Theory
2. Organizational development of Russian business
2. Small to Large: Companies of the 1990s.
3. Modern world practice of organizational development
List of used literature
The term "organizational development" in Russia appeared in the 1990s. Organizational development was often called any, even not very significant, change that occurs in the company. The position of the director of organizational development was more status than real. Underdeveloped organizational development of the company is caused by the following problems:
The Russian business environment is currently one of the most dynamic and rapidly developing. In the context of Russian products entering the international market and the need to compete with foreign companies on the domestic market, domestic businesses have to significantly increase their efficiency and develop in leaps and bounds. We often see headlines about business growth 10 times, 20 times, we see startups when there was nothing and suddenly altyn. And this is really real, these are not fairy tales. It's just that in a dynamically developing market, even one instrument that increases efficiency brings huge dividends from an investment in its implementation.
Business trends and systematization
Why was internet marketing the real breakthrough of the 10s? For us, it was something qualitatively new, a platform for product placement, which was not exploited in principle. At the same time, working and proven technologies already existed in the West. The business owners who implemented them skipped the logical stage of trial and error, increasing the flow of customers at times. They already knew it worked when they started using this tool. Therefore, any working business solution brings a significant increase in profits, as it is ready-made in the Russian market. If you already know that you can hammer in nails with a hammer, you don't need to design and design one by trial and error.
The situation is similar to Internet marketing today with management. If 10 years ago even large companies hired management from abroad, and top management with an MBA degree was corporate pride, now the owners have focused not on managers, but on building a management system, a business process management system.
Why a management system and not a qualified leader?
There is an answer to this question: when the system is implemented by personnel, even if they are competent and experienced, the owner does not have control points of the built system, he does not know it, and when the manager leaves, he will again be left with nothing. Unable to maintain the system created by the hired top manager, the company is storming, which leads to serious consequences for the entire business.
These problems arise from ignorance of the basics of management and a lack of understanding of what a systemic business is. A systemic business is a business in which there is a well-functioning work of all business processes of the company, which function independently of the business owner. Unfortunately, in Russia, consistency is perceived as a luxury available only to large businesses, and in SMEs, most owners consider systematization to be a fairy tale or utopia.
In fact, the business process management system and, as a consequence, the systematization of the business itself has specific components - management tools. And since it has specific components, there is also a way of their implementation, which achieves systematization.
Six Whales of the Business Process Management System
Below I will talk about six management tools for organizing a business. Their implementation allows the owner to manage from anywhere in the world. Business processes are becoming streamlined. Of course, these are not all existing tools, but these are the fundamental ones for systematizing a business.
This is the hierarchy of the company and its internal working mechanism, represented by a diagram as a tool. Its implementation usually solves the following problems:
- cross-reporting (when one employee reports to 5 managers)
- lack of responsibility for some areas of activity
- clear distribution of responsibilities and functions within the company
- lack of the final product of labor of each employee, department and direction
Managing a business, even a small one, requires not only certain skills and abilities, but also the presence of important qualities. In this article we will tell you what you need to know for effective management, what qualities you need to develop and use in yourself in order to become not just a leader, but a very good leader - a real leader.
Business management fundamentals imply an organization as a set of business processes. All separate processes help to solve a common problem. The orderly activity of the organization acts as an object of management.
Business Management Basics
The basis of business process management is to streamline the organizational structure, all its resources and risks. Each individual subject is considered as an impact on the final product of any business process.
This approach allows you to add all factors into planned or actual indicators to see the degree of efficiency of the enterprise. The foundations of organization and business management allow:
- Calculate and take into account how many basic resources (human and material) are required for the production of one product.
- Competently solve tactical / strategic tasks that appear in the course of enterprise development. These tasks include the implementation of organizational changes, the regulation of activities, the implementation of functional and cost analysis.
- Compliance of the system with modern requirements of effective management also provides the basis for small business management. For example, the application of ISO 9001, a quality system standard, prescribes the implementation of a process-based guidance.
Business Management Structure
Process management of small and large business
Business Process Management provides the following benefits:
- Standardization. All types of activities that lead to one result are allocated into one group and are subject to uniform strategic control standards. For example, interaction with customers for small businesses is allocated to the Sales of Products group, which is controlled by the Procedure for attracting customers and selling goods.
- Improvement. The organizational foundations of business management imply the use of a control loop for any business process and regular improvement of activities.
- Automation. Competent small business management often includes the use of special information systems. Usually they include tools for visual modeling of business processes, simulation modeling, execution of business processes, monitoring the effectiveness of execution.
Among all sections of the business plan:
- Cover Page
- Confidentiality Memorandum
- Executive Summary
- Investment Plan
- Marketing plan
- Production plan
- Organizational plan
- Financial plan
- Risk analysis
it is the organizational plan that describes the project staff, initiators, their shares in project management, qualifications and remuneration of project managers, as well as staff motivation.
If you are writing a business plan to receive investments for the development of an already operating enterprise, you will need to prove to potential partners that its organizational structure is as effective as possible. If you are just planning to open a company, production or retail outlet, you will need to describe in detail how you are going to ensure the operation of the new business.
All information related to the management of the enterprise should be presented in a section called "Organizational plan". Moreover, it is this point of the business plan that will prepare the ground for writing the financial section of the project.
Business Plan Organizational Plan Structure
First of all, in this section it is necessary to justify the choice of the form of activity. Indicate whether you are an individual - individual entrepreneur, or the founder of an organization - LLC or JSC. In the latter case, it is imperative to list the governing bodies and their powers, the composition of the founders and their rights and obligations. After that, it is necessary to describe the organizational structure of the enterprise.
Organizational structure is the composition, system of relationships and functions between the various departments of the enterprise, each of which is responsible for its own area of activity and is part of the hierarchical system of the organization.
There are several types of organizational structures, namely linear, functional, linear-functional, etc. However, whatever the type of structure, your task is to emphasize that it is as efficient as possible, namely:
- Allows to establish interaction between all departments and employees;
- Creates favorable conditions for the manufacture of high-quality products or services;
- Promotes the development of the enterprise , its goods and services.
As a rule, the authors of a business plan depict the organizational system as clearly as possible, using a diagram or organogram. To create the latter, you will need to download a special application, while a diagram can be created in a regular Microsoft Word document. If for some reason you cannot represent the system graphically, you can describe the structure of your enterprise in text.
Organizational structure of the business and its development
For those who work in large enterprises in administrative divisions, it is probably clear what an organizational structure is. Some companies even present them to their employees at welcome trainings. Let's try to figure out what it is.
First, let's define what the words "organizational structure of a business" mean. then the division of the enterprise into all kinds of departments, divisions, workshops in order to ensure an orderly process of managing an economic object.
The organizational structure of a business implies the presence of clear relationships between all departments of the company, as well as a designated definition of areas of responsibility.
What is it for
The business structure of the enterprise is designed to ensure the development of the organization as a whole. Its presence allows the responsible link to quickly make a decision, determine the area of responsibility and quickly transfer information to the required structural unit.
The organizational structure of a company's business is not something static; it can change quite often, adapting to changes in the economy. This is due to the fact that any ambitious leader strives to ensure that his company interacts with other organizations as productively as possible, and that employees perform their duties efficiently.
How the structure of an enterprise can be modified
A hierarchical structure is a collection of many departments, such as the sales department, production department, accounting department, whose main function is to provide activities with resources.