Business Basics is all about business. A business, also known as an enterprise or a firm, is an organisation involved in the trade of goods, services, or both to consumers. Businesses are prevalent in capitalist economies, where most of them are privately owned and provide goods and services to customers in exchange for other goods, services, or money. Businesses may also be not-for-profit or state-owned. www.executivementors.com.au

1. Designing Your Organisational
Structure
• Small organizations often start out with a fairly
flat structure.
• In large companies, there can be several layers of
supervisors, managers, directors, and vice
presidents.
• The bigger the company becomes, the more you
will have to delegate.
• Introducing staff in senior or management roles
allows you to establish paths of communication
and authority.
Bringing the Idea to Life

2. Designing Your Organisational
Structure
Two-Person Structure
Leveraging Structure

3. Designing Your Organisational
Structure
The Next Phase
Leveraging Structure

4. Designing Your Organisational
Structure
Adding Layers of Management
Leveraging Structure

5. Designing Your Organisational
Structure
Geographic Structure
Looking at the Options

6. Designing Your Organisational
Structure
Divisional Structure
Looking at the Options

7. Designing Your Organisational
Structure
Matrix Structure
Looking at the Options

8. Designing Your Organisational
Structure
• Being overly rigid about structure can be a
deterrent to getting things done.
• Being flexible is required to succeed in today’s
marketplace.
Who is in Charge?

9. Designing Your Organisational
Structure
Differences for Corporations
•A corporation is owned by the shareholders.
•The corporation is led and managed by a Chief
Executive Officer (CEO), who in turn is governed
by a board of directors.
Who is in Charge?

10. Designing Your Organisational
Structure
Choosing Board Members
•It’s up to the chairman of the board to determine
whether the selection process and nominations are
in the best interest of the organization.
•In non-profit or not-for-profit societies and
agencies, the CEO is often referred to as the
Executive Director.
Who is in Charge?

11. Designing Your Organisational
Structure
Board responsibilities include:
•Monitoring the actions of the CEO
•Ensuring that the company meets the bylaws of
the organization
•Making sure that the company remains financially
sound and is audited according to the law
•Ensuring that the company meets regulatory
obligations
Who is in Charge?

12. Designing Your Organisational
Structure
The Role of Shareholders
•It is more common for groups of people and
corporations to hold stock in different
companies.
•The duty of responsibility of the board of
directors is becoming more regulated.
Who is in Charge?

13. Designing Your Organisational
Structure
The Big Picture
Who is in Charge?

14. Designing Your Organisational
Structure
Words of Wisdom
•Organisations that are committed to their
hierarchies may treat executives with perks and
incentives.
•These things are no longer appropriate.
(Robert Townsend, Up the Organization)
Who is in Charge?

15. Designing Your Organisational
Structure
Current Thinking
•Current thinking encourages Organisational
behavior that influences (vs. older practices of
controlling employee behavior).
•The application of systems theory is one way
that openness and feedback are incorporated
within an organization.
Who is in Charge?

16. Designing Your Organisational
Structure
In a learning organization, owners/managers:
•Display a commitment to lifelong learning and
development
•Demonstrate leadership qualities as opposed to
management-only practices
•Embrace a commitment to engaging their
workforce purposefully
Who is in Charge?

17. Designing Your Organisational
Structure
• What is your current business structure?
• What is the percentage of growth that you want
in the next 24 months?
• On a scale of 1-10, what is the likelihood that you
will achieve those targets with your current
business structure?
• What changes can you make to your structure to
improve the likelihood of reaching your goals?
Structural Considerations