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Company Organizational Structure: Key Success Factor

Human resources and company organizational structure are being a factor in company success. Without the presence of competent human resources, a company can’t operate well. And also, without a good company structure, the bureaucracy in the company can be said to be bad. But do you know the meaning of organizational structure? In general, an organizational structure can be defined as an arrangement of work units in an organization. This article will discuss the company’s organizational structure that is a key success factor.

What is Company Organizational Structure?

company organizational structure
Source: Rawpixel.com

Company organizational structure or company structure is an arrangement of work units in a company. Each of these work units is occupied by competent human resources. Of course, each of these work units has its own responsibilities. Company organizational structures have several functions and benefits. To begin, the presence of company’s organizational structure makes the company bureaucracy run well.

Furthermore, company organizational structure gives convenience for a company in delegating responsibilities to all work units. As a result, all company staff with their work units get fair responsibilities. Company’s organizational structure can decrease the company’s internal conflict. Last but not least, a company structure can help a company to achieve its goals and targets. So, we can say that a good company structure could be a key success factor.

Also read: Stakeholder Is: Definition, Types, Function, and Analysis

Examples of Company Organizational Structure

structure
Source: Rawpixel.com

The company structure is an essential element for a company. Several general work units can be seen in many companies. These work units are director, financial manager, personnel manager, marketing manager, production manager, and staff. Each of these work units has its own responsibilities.

Director has the responsibility to maintain the company’s operations. Below the director, there are several managers. First, the financial manager that has responsibility for the company’s financial affairs and financial reports. Second, the personnel manager has responsibilities in company administration, such as recruitment to evaluate worker performance.

Third, production manager. The production manager has responsibility for the company’s production activity. Therefore, the production manager always ensures that the company’s production activities run smoothly. Fourth, the marketing manager has responsibility for company marketing activity. This marketing activity can increase the sales of the company’s products. Last but not least, the company’s employees play a role in supporting the company’s operations.

However, keep in mind that the size of a company affects its organizational structure. Speaking of the examples of company organizational structures, there are several examples of these structures. It starts from the structure of a small company to the structure of a service company. These are the explanations of the company’s organizational structure example.

Small company organizational structure

company organizational structure
Sources: HashMicro

There are a few work units in a small company’s organizational structure, such as directors, financial managers, personnel managers, business managers, marketing managers, and employees. Each manager must report their work to the director. Employees in this organizational structure support the company’s operational activities. This organizational structure is intended for companies that are newly operational and do not have enough human resources.

Trade company organizational structure

company organizational structure
Source: Pinterest.com

In giving examples of a trade company’s organizational structure, we can take examples from the picture above. We can see that work units in this organizational structure are more numerous than the previous structure. This aims to give convenience in delegating the responsibilities and tasks to each work unit. There are additional work units in this structure, such as shareholder and other supporting departments such as customer service and planning departments.

Manufacturing company organizational structure

company organizational structure
Source: Pinterest.com

In explaining the manufacturing company’s organizational structure, we can take an example from the picture above. There are many departments below the shareholder and director, such as the production, investment, marketing, technical, and human resources departments. Each of these departments has its manager in charge.

Service company organizational structure

company organizational structure
Source: struktur.shareinspire.me

To explain the service company’s organizational structure, we can take an example from Angkasa Pura I, an Indonesia airport service company. In this structure, we can see that there is a general manager responsible for maintaining all company operational aspects. Below the general manager, several head divisions have the responsibility to maintain their division work performance. The head division will give the work performance report monthly and annually to the general manager.

Also read: 5 Tips for HR Manager to Avoid Bad Recruitment

Conclusion

Company’s Organizational structure is an essential component for the company’s operation. Without a good organizational structure, a company can’t operate well. Also, company bureaucracy can be said to be bad without this structure.

To give convenience for your company in maintaining staff’s work performance, HashMicro provides a HR Management System with top features. Contact us to get the best offer and free demo.

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