The organizational structure of an enterprise

To understand the concept of what the organisational structure of a company is is all about defining what functions each of the people who work perform. What it does, to whom it reports, to whom it depends, on whom it rules,…

The functional organization of each person in a company refers to the organizational characteristics of the company.

The shape of this structure will depend on the size of the company. The larger the size, the more specialisation. In addition to a more hierarchical system.

Above all, when a company is very large, there is a greater need to define the functions performed by each member of the structure. And the larger the company, the less centralization of tasks. That is, greater specialization.

In a small company it is likely that a single person performs the tasks that several different departments in a large company do. As I have already commented, the greater the specialization, the better.

In this sense, knowing who belongs to each department and in what hierarchical situation it is, will be fundamental in order to carry out the organization chart of the company.

The organigram is the visual scheme that graphically represents the functions of each employee. We will quickly see which department it belongs to, the hierarchical organization, etc. It allows us to get an idea of the formal structure of a company or entity.

Employees and their positions are represented in rectangles, images (their own photographs), or other icons.

There are different types of organization chart, which according to their classification show us in their content the scheme of the staff. If their distribution is vertical, they will show the hierarchy from top to bottom, in horizontal from left to right, etc.

We must organize employees as in a family tree. The “parents” will represent in the organizational hierarchy of the company, a superior position and will command over their “children”. The “siblings” of the same department will have very similar functions within the same department.

To make an organizational structure of a company we must divide it into departments, define the person responsible for each one and then add the people who are part of each section. Visually the organization and where we place each name will depend on the hierarchy that occupies each member.

It is advisable to use figures or colours to differentiate departments and even hierarchies. And, if the company is very large, we can also add photographs of each employee to identify them. As well as additional information of position, contact, etc.

The big difference we will find in the organisational structure of a company as its size increases is the specialisation and diversification of tasks and departments.

The departments that normally exist in all companies are:

• Sales.
• Production.
• Human Resources.
• Marketing.
• Logistics.
• Administration.
• Address.
• Finance.

If the company is very small it is likely that the same department will take on several tasks from the previous point. On the other hand, if a company is very large, it is likely that there are, for example, two sales departments, each of which has an area of business.

Each department executes a task and needs specific tools to perform the task correctly business management .

If several departments need to be connected, with information that is always available and accessible, they should opt for a Online CRM. This type of tool is useful for commercial equipment, warehousing and logistics.

And you, do you know the organizational structure of your company?