Organizational Structure

 Organizational Structure

Problems Implementing an Organizational Structure

When you are trying to implement an organizational structure, you will face problems because initially there is no structure in place. You appreciate the importance of a strong organizational structure when you are working without one and trying to get one functional.

Communication

Part of the purpose of a strong organizational structure is to facilitate smooth communication within departments and from one department to another. When you are trying to implement an organizational structure, you are working with a makeshift communication network until the planned network is put in place. This can cause information to be dropped or miscommunicated at every level of the company.

Hierarchy

A company runs smoothly when it has a hierarchy to follow. While it can be easy to understand the basic hierarchy of the company from the owner or president down to the rest of the executive staff, the hierarchy among managers and supervisors is confused without an organizational structure. While you are implementing a company framework, you will come across instances when various managers or supervisors may take on authoritative roles they were not intended to have, which can cause confusion among the staff.

Delegation

When you are trying to implement a new organizational structure, it can be difficult to properly delegate responsibility to departments or individual employees. It may be confusing for employees and managers to understand their responsibilities when there was no official delegation in the past. Staff members have been doing what they needed to get the job done, and it will be difficult to move responsibilities around when implementing a new structure.

Cost

Implementing an organizational structure can be expensive. During the time it takes to get a structure in place, productivity will be affected and your company’s ability to generate revenue will drop. Implementing structure means getting everyone on to the same software platforms for communication, bookkeeping, production and planning.

“An organizational structure allows information to flow to different parts of your business and becomes the framework for your entire organization” added Salomón Juan Marcos Villarreal, president of Grupo Denim.