Organizing is one of the recognized and accepted principal functions of business management. It helps business entities systematize its existence and operations as a stable and working organization. Organizing primarily involves structuring, departmentation and design. But the scope of organizing extends to business processes, SOPs and technologies. So, when we talk about organizing our businesses, we must consider the scope of organizing in its entirety.
In this article, we’ll try to highlight some of the easy and effective ways through which SMEs can organize their businesses.
Define your Business Model
The business model is how a company plans to earn revenue and stay profitable through its operations. If the business operations are not in tune with the intended business model, the company will not be able to deliver the intended value to its customers which if not addressed on time will eventually result in the failure to achieve the targeted revenues. Therefore, the business model assumes the role of a principal guiding factor in determining the business operations and the value-chain activities of a company. This sense of direction and purpose in the conduct of business is crucial for a company to constitute a stable and supportive organization.
The business model is how a company plans to earn revenue and stay profitable through its operations
Organizational Structure and Organization Design
Organizational structure and organization design are two integral elements of the organizing function of management. Organizational structure refers to the hierarchical framework of the roles and positions in a company based on its departmentation strategy representing its authority-responsibility relationships and order of communication. Organization design is needed to get the organizational structure and the business strategies to work in tandem. The foundation of a strong organizational structure built on effective organization design is important for a company for better management and control over its activities and resources
Organizational structure refers to the hierarchical framework of the roles and positions in a company based on its departmentation strategy representing its authority-responsibility relationships and order of communication. Organization design is needed to get the organizational structure and the business strategies to work in tandem
Define your Business Processes
In simple words, business process refers to the functional or sub-functional series of activities. For example, in small organizations, the entire HR function can be treated as one single business process while in bigger organizations; the sub-functions of HR (recruitment, salary processing etc) are likely to be treated as separate business processes. It is very important to define these business processes because it maps how the operations or the operational activities involved in a business process will actually be carried out. This involves identifying the key operations involved and identifying the operational activities required to complete the operations and determining the flow of these activities. Defining the business processes will help organizations have a clear vision of they will be doing or will be required to do in different functional areas of business.
It is very important to define these business processes because it maps how the operations or the operational activities involved in a business process will actually be carried out
Standard Operating Procedures (SOPs) are documented step-by-step instructions to be followed in the execution of the routine operational tasks and activities. SOPs not only define the flow of work but also explicitly expresses the what, where, when and how of the operational tasks/activities. By defining the standards of performance and output at the operational level, SOPs helps businesses maintain quality, efficiency and effectiveness at the grass root levels.
Having SOPs helps a company ensure that its employees know what operating procedures they are required to follow and what are the accepted standards of performance and output
Organizational culture refers to the collective or shared values, beliefs and customs in an organization which shapes the behavior and conduct of its employees. Organizational culture has a direct bearing on employee motivation and morale, their productivity and performance, attrition and retention, teamwork etc. However, most often it is not feasible to paint an organizational culture in black and white. But it is very important for business enterprises to sow the seeds of a positive and professional work culture right from its infancy. With a desirable organizational culture, the management of a company can rely more confidently on the collective potential and professionalism of its employees which in turn reinforces the established order of an organization.
Organizing a business requires a planned effort. Entropy prevents things from falling into place on their own. Defining the business model, establishing organizational structure and design, building business processes, developing SOPs and creating and sustaining a healthy work culture are essential to building the foundation of a strong organization.
Organizational culture has a direct bearing on employee motivation and morale, their productivity and performance, attrition and retention, teamwork etc
To read more article related to this topics click here: 6 Effective Ways to Run your Business Successfully | YRC, How Can an SME Raise Funds from Public? | YRC, 05 Reasons why Developing the Right Culture in the Organization is Inevitable for Growth | YRC, How SOPs will Benefit Wholesale Brand Venturing into Retail | YRC.
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Chief Strategy Officer