Business Structure
Every organization needs a structure to operate and develop. It is the configuration of authority positions and relationships within the business. The Business Structure is vital for a company’s performance and efficiency. It must be correctly designed and adjusted to the environment of the business. In order for the company to achieve its purposes and respond to the constant changes in trends and demands, a more flexible structure is more suitable. * Hierarchy – a main characteristic of Business Structure
It shows the levels of an organization and how the people are related to each other. In some companies there are many levels of management and high contrasts in authority. These are vertical structures which enable more rules and strict, official communication between the levels. This is a more formal structure because the decisions are taken in the high levels; however, managers often do not have all the information and connection from the lower levels because they do not communicate.
Current Situation: * many vertical linkages, limited communication between departments * five managers with weak cooperation * insufficient task distribution and quality control * the structure does not satisfy the demand and company’s goals
The structure of S&C has few levels of management and implements for strict control. However the departments are not related to each other, do not have good communication and the tasks are wrongly distributed. All this leads to failure in achieving the company’s objectives. The structure needs to be changed to improve operations. There is a necessity of Purchasing department for example. This is not a job of anyone or only the banqueting manager. It is difficult for the five managers to have good overview of the whole working process - responsibilities of employees and tasks efficiency are hard to control. Simple processes like updating the team and the manager when ordering