Organization of a Company: Definition, Elements, How a Company is Organized and MORE

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The Organization of a Company it is very important in the fulfillment of its objectives and, therefore, in its growth. You must have a plan in place from the outset that specifies how the company is going to be structured and managed, so that it is properly organized.

Such is its importance that today we will be explaining everything about this topic. We will tell you what the company organization is, key elements to carry it out, how it is organized, what departments a company must have and other important data that you must take into account. If you are interested in all this, keep reading!

What is the Organization of a Company?

Let’s start with the Definition of Organization of a Company. Know what we mean by organization so that you can understand everything else. Keep in mind that this is a concept that you use on a daily basis, only adapted to the environment of a company.

This administrative function comprises three key elements:

  • Structuring.
  • Organization.
  • Integration.

All these are what make up the organization of a company and are directly linked to the resources that move in it. We refer to technological, material, financial resources and the human factor, of course. All of these must be integrated, organized and structured in a proper way.

Additionally, this organization can refer to the division of a company into a series of departments. Each of these will have different specialties, although they all pursue the company’s own objective: to innovate, grow and maintain a competitive advantage.

These divisions, in addition, can be hierarchical. Each of them usually has a series of positions that vary in rank for better internal organization.

It may be that the company is not large enough to have such specialized departments, but is just starting out and just wants to organize the resources that make it up. In this case it is fine. The important thing is to bear in mind that before starting a company it must organize it to work properly.

In conclusion, the organization of a company refers to the structuring and integration of the elements that work in it so that it can start up and meet the objectives that it arises over time.

Key Elements to Carry Out the Organization of a Company

Now that you have an idea of ​​what it means, let’s talk about Key elements to carry out the organization of any company. These do not vary according to the nature of the company, but can be applied to anyone.

Levels in the Organization of a Company

First of all, we have the hierarchy of which we spoke to you before. This model is widely used by large companies since they are usually made up of several levels of operation. Small and medium-sized companies have fewer levels, from two to three, but they still have them.

This is done given the need to have a leader who is responsible for ensuring that all workers are performing the necessary activities for the company to function. In turn, this leader is led by a person and so on. This ranking is not mandatory, just common.

There are companies that have the philosophy of maintaining a horizontal relationship between members. Instead of the leader assuming responsibility for the people in his charge, he works in such a way that the responsibilities and decisions belong to everyone. This model follows the belief that the less hierarchy the better the work environment and productivity of the company.


Job positions

Second, it is important to determine the positions that each person will occupy. This should be consistent with your abilities, skills and abilities, so that the tasks you perform can have the desired results. A person in a job that does not correspond to him would be a bad resource employee of the company.

For this reason the resumes are requested; to see if the potential worker meets the requirements of the company. As a result, it is necessary to know the positions that will be assigned in the company and then choose the right people for that position.

Means

Another key point is the resources. These can be human, as are employees, but they can also be technical. You must know what resources are necessary and which ones are necessary, as well as how to use these resources to achieve the maximum possible productivity in the company.

Leadership type

Defining the type of leadership that the company will follow is also important when defining organizational dynamics. It can be participatory, autocratic or staff-line. Each business must define which is the most according to its needs.

Delegation

A concept of delegation should be promoted. One person cannot take care of everything, but you need to know which people can do a better job than others. Teamwork is essential in achieving the objectives of the company. Thus, the capacity, disposition and compatibility of people with the tasks to be carried out must be taken into account.

This concept is closely linked to that of the job and hierarchy.

Communication routes

In order to organize the company, it is also necessary to be clear about the channels that are going to be used in communication between departments, directions, jobs, and so on. It is vital that the company knows what is happening at each level of it.

Work environment

Finally, once all the previous points have been established, the work environment will be defined. You must decide if you want it to be a competitive, cooperative, respectful climate or how.

How is a Company Organized?

With respect to Organization of a CompanyIn the case of the industry, it has a very specific organization. This follows a series of levels that can go as follows:

  • General meeting of shareholders.
  • Directorate General:
    • Administration and Finance Department:
      • Costs
      • Budget.
      • Treasury.
      • Accounting.
      • Human Resources.
      • Systems control and computer control.
    • Planning Department:
      • Planning and strategy.
      • Investment projects.
      • Evaluation of operational control.
    • Production Department:
      • Environmental protection and environmental safety.
      • Materials management.
      • Production.
      • Maintenance.
      • Quality.
      • Research and technological development.
    • Marketing Department:
      • National and international sales.

Thus, departments manage other departments, which have specific functions. They are areas where the people who are in them are in charge of tasks related to their department. Thus, in the Accounting Department, the accounting books are made by accountants or actuaries.

Other Important Data at the Time of Carrying Out the Organization of a Company

Other data that must be taken into account in the organization of a company are the following:

  • You should know that all departments are correlated and they are affected with each other. Thus, the marketing and planning department is needed to work in the administration and finance department. For this reason, all levels must be focused on the same purpose, which must be clear to all workers.
  • The organization is left to the opinion of each company. As we indicated before, the number of departments is correlated with the size of the company. Small businesses cannot hold that many at once, but they have to be strategic in the divisions they make.
  • Some of the departments only require few people or just one, without the need for large contracts.

The Departments that a Company Must Have

Finally, we can end this article by talking Of The Departments That A Company Must Have. You have already seen the organizational structure that a company can have in the previous section, but below we will indicate those that should not be left aside as much as possible.

  • Human Resources. As its name implies, it takes care of the work factor. Specifically, this department is in charge of carrying out an adequate hiring process, so that the right people can be chosen for each position.
  • Finance. He is in charge of obtaining financing and keeping the accounts of the company.
  • Marketing. The objective of this department is to increase sales and the competitive advantage of the company through a series of analyzes and strategies. He works together with the Marketing Department and sometimes these two are integrated as one.
  • Commercial. It is responsible for establishing the objectives of companies, departments and workers.
  • Shopping. The task of this department is to purchase the raw material necessary for the production of goods and services.
  • Logistics and operations. It is one of the most important departments. This is in charge of taking the product to the customer efficiently and in the prescribed conditions. It plays a fundamental role today with technological innovations.
  • Directorate General. Establish the business plan, the objectives of the company, see that all departments work properly. In small businesses it refers to the owner.

Now you know all about the Organization of a Company! Remember that this correctly implemented allows a better definition of objectives and strategies, as well as better cooperation and performance. This is very important for the growth of any company.

Until next time!


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