Small business organizational structure

There are four main types of business structures in the U. Each structure has different tax, income and liability implications for businesses owners and their companies. Sole Proprietorship Sole proprietorship is the simplest organizational structure available for businesses. Businesses structured as a sole proprietorship allows the owner s to have total control over company operations.

Small business organizational structure

Functional

Yabresse Organizational change occurs when a company makes a transition from its current state to some desired future state. Managing organizational change is Small business organizational structure process of planning and implementing change in organizations in such a way as to minimize employee resistance and cost to the organization, while also maximizing the effectiveness of the change effort.

Today's business environment requires companies to undergo changes almost constantly if they are to remain competitive. Factors such as globalization of markets and rapidly evolving technology force businesses to respond in order to survive.

Such changes may be relatively minor—as in the case of installing a new software program—or quite major—as in the case of refocusing an overall marketing strategy.

Bateman and Carl P. Zeithaml in their book Management: Insidepressures come from top managers and lower-level employees who push for change. Outside pressures come from changes in the legal, competitive, technological, and economic environments. In some cases, however, companies are encouraged to change for other, more positive reasons.

Recognition of a performance gap often provides the impetus for change, as companies strive to improve their performance to expected levels. This sort of gap is also where many entrepreneurs find opportunities to begin new businesses.

Unfortunately, as Rick Mauer noted in an article for HR Focus, statistics show that many organizational change efforts fail. For example, 50 percent of quality improvement programs fail to meet their goals, and 30 percent of process reengineering efforts are unsuccessful.

The most common reason that change efforts fail is that they encounter resistance from employees.

Small business organizational structure

Change appears threatening to many people, which makes it difficult to gain their support and commitment to implementing changes. Consequently, the ability to manage change effectively is a highly sought-after skill in managers.

Companies need people who can contribute positively to their inevitable change efforts. All four areas are related, and companies often must institute changes in the other areas when they attempt to change one area.

The first area, strategy changes, can take place on a large scale—for example, when a company shifts its resources to enter a new line of business—or on a small scale—for example, when a company makes productivity improvements in order to reduce costs.

There are three basic stages for a company making a strategic change: Technological changes are often introduced as components of larger strategic changes, although they sometimes take place on their own.

An important aspect of changing technology is determining who in the organization will be threatened by the change. To be successful, a technology change must be incorporated into the company's overall systems, and a management structure must be created to support it.

Structural changes can also occur due to strategic changes—as in the case where a company decides to acquire another business and must integrate it—as well as due to operational changes or changes in managerial style. For example, a company that wished to implement more participative decision making might need to change its hierarchical structure.

People changes can become necessary due to other changes, or sometimes companies simply seek to change workers' attitudes and behaviors in order to increase their effectiveness. The science of organization development was created to deal with changing people on the job through techniques such as education and training, team building, and career planning.

Resistance to change is a normal reaction from people who have become accustomed to a certain way of doing things. Of course, certain situations or tactics can increase resistance. But if people perceive no performance gap or if they consider the gap un-important, they will not have this motivation.

Moreover, they will resist changes that others try to introduce, " Bateman and Zeithaml explained. The authors outlined a number of common reasons that people tend to resist change.Large or small, every organization should operate with a defined organizational structure. A well thought out and strategic business configuration clarifies reporting relationships and supports good c.

Jun 30,  · Organizations are set up in specific ways to accomplish different goals, and the structure of an organization can help or hinder its progress toward accomplishing these goals. Basic org chart template for a business. Suitable for getting started with your first org chart.

Easily editable online via Creately. The U.S. Small Business Administration (SBA) is a United States government agency that provides support to entrepreneurs and small r-bridal.com mission of the Small Business Administration is "to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters".

Your business might be small, but the way you structure it is a big deal. Organizational charts aren’t just for big companies.

Defining the structure, roles, and processes in a small business can make it more efficient, clear up communication issues, empower employees to make decisions, and keep the team accountable.

Your organizational structure may help determine how your small business expands and innovates. Here are some of the most common—and a few new ways to look at office organization.

Discover more in the Best of OPEN Forum series.

Small business organizational structure
Business org chart template | Editable Organizational Chart Template on Creately