One of the factors every business needs to get right is its organizational structure. It’s something that’ll shape everything you do, from how your teams operate to how likely you are to deliver for your clients. 

So if you’re yet to really think about your organizational structure, what it should be and how it should function, don’t put it off for a second longer. We’re going to discuss today some of the most important things to consider when creating a business structure. From there, you should be able to create one that stands the test of time.

The Point of an Organizational Structure

The organizational structure of your business represents how employees work, who they report to and where the chain of command lies. It can also show where and how decisions are made. And they should be created with the specific needs of that particular business and the industry in which it operates in mind. In short, they show how the company operates. And they can help newcomers understand that and their role within the wider company.

Chain of Command

Approval and delegation are the two important aspects of the chain of command. When creating an organization structure, you need a clear representation of how approval for projects and spending are improved, and how work is delegated down the ladder too. The chain of command also shows the span of control and where decisions are made. It can be visualized as the various rungs of a ladder, with tasks and approval-seeking moving up and down in.

The Level of Centralization

Centralization is all about where final decisions are made. Some businesses are, for a variety of reasons, more centralized than others. Although a greater emphasis on decentralization is certainly the trend at the present moment. In a more decentralized organization structure, people at lower levels within the business will be encouraged and trusted to make decisions without having to seek approval all the time at a higher level. This delivers greater worker autonomy.

Organic or Mechanistic Structures

There are two polar opposites to consider when it comes to understanding organizational structures. At one end, we have mechanistic structures that are more top down and bureaucratic, these favor less autonomy. Organic structures have multiple nodes of decision making and a less top-down; in these structures, more autonomy is granted to individual workers as decision-makers in their own right.

Security as the Backbone of Your Structure

In order for a modern business structure to function, security has to be its backbone. Security threats are greater than ever, and that’s why it makes sense to use a managed IT service that can focus on security while you focus on the things that matter to the growth of the business. No structure can succeed and support the business if it’s not also secure and able to block the threats that it faces from external malicious actors.

As you can see, there are many different factors to consider when deciding on the organizational structure that’s going to work best for you. Be sure to take all of these things into account and assess your needs carefully before implementing your new structure.