Creating a Company’s Organizational Structure
- 2024-09-18
Selma Məmmədova- Blogs
Organizational structure plays a critical role in making a company’s operations more efficient and effective. The creation of departments, divisions, or units ensures clear classification of business functions and responsibilities.
Before building the structure, a company must develop a formal statute for its organizational model. This legal document defines the structure’s form, type, components, rights, duties, and responsibilities. Once signed by the company’s legal representative (director), the statute becomes legally valid, and based on it, the director issues an official order to create the structure in the ƏMAS system (Labor and Employment Subsystem).
Creation, modification, or dissolution of a company’s structure becomes legally binding only through a formal order issued by the legal representative.
A company’s organizational model may consist of a main structure and sub-units such as departments, sections, and divisions. Establishing these enables:
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timely feedback;
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tracking work progress;
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faster decision-making;
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increased employee motivation;
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assessment of training needs;
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performance management;
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effective and quick problem-solving;
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enhanced internal control.
Additionally, defining staff units within the structure helps:
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proper distribution of responsibilities;
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measuring quantity and quality of work;
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increasing overall efficiency;
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maintaining optimal workload levels;
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improving employee understanding of their roles.
An established organizational structure shapes the company’s culture, strongly influencing employee behavior. A company with a clear structure and culture gains moral weight and is better understood by employees, business partners, and even competitors. Employees who clearly understand their duties perform with greater enthusiasm, leading to improved performance and stronger moral values across the company.
Ultimately, an organizational structure forms the foundation of the company’s roadmap. In the business world, companies with a solid structure have a clearer path, can guide their employees more effectively, and stay ahead of the competition.