Set aims and objectives of the structure
Find out the goals of your business structure by seeking answers about the reason and function of the company. Think about organizational structure from a strategic and tactical point of view to get a better idea. Determine the present structure or the framework you wish to create. You can do this by making a flow chart. The structure can be flat, tall, functional or product. There are a lot of levels of management in a tall structure but some levels of management exist in a flat structure. Another type is a functional structure in which there are finance, marketing and sales departments but you can move to a product division that has one product team for every product. Global companies might follow a multinational or transnational structure.
Pros and cons
See the positives and negatives of all organizational forms. Know the legal ramifications of all the structures in the business. Make use of strategic objectives to aid in the formation of the structure. The aim should be to have a smooth and efficient operational system. This way the organization will have an effective structure that will work towards achieving the mission statement.
Increase the productivity of the employees
A chain of command is vital as it empowers employees to be more productive. An effective organizational structure should ensure good levels of communication. Offer a clear set of processes to make better procedures to carry out the day to day work. Communicate and explain the structure to every single employee of the company. The administration or management can ensure a very effective method of communication; therefore try to employ highly trained individuals.