Need for organisation structure role clarity in growing organization

When the organization is small, it does not require any formal organization structure, role clarity as most of the transaction would be done by the promoter cum business head with this known people through RELATIONSHIP. But when the organization grows regarding sales turnover, customer's addition, new product lines or variety increasing, the business also becomes complicated. The Organization requires a formal structure with relationship to get the things done without much complication or trouble.

when we say formal structural relationship, it involves 

• The positional designation, 
• Role accountability, 
• Performance metrics to measure accountability and responsibility 
• Reporting relationship 
• Organization-wide formal communication process about the structure 

Need for this structural in a growing organization

1. When the organization grows the relationship, and informal management becomes challenging to manage
2. Increase in communication complexity leads to confusion among the team
3. There is a chance for poor accountability  among the team in case if they are not governed by performance metrics, and there is no reviews and reporting method
4. When we have a structured  organizational relationship with performance metrics and the review forums helps to build performance culture .
5. It is a known fact that what we measure with accountability will bring focus and control.

Let us discuss organization structure designing

Most of the time we see a trend when we are asking for organization structure people are showing some visual positioning of man people and saying on a structure is already there. It is not just who is reporting to whom or who are all going to report to porting to one person.

In my opinion, visualized organization structure is a final step in the designing organization structure. Before that, a lot of strategic and tactical thought process has to go into the designing the organization structure.

As we discussed in manpower planning whenever there is an increase in the volume of product lines or customer base or whenever you are going for expansion, then it calls for revisiting the organization structure roles and responsibility.

For example, if there is a  position as General Manager  with business development as his accountability, then we need to articulate his  positional accountability with one or two performance metrics 

It could be a sales turnover increase our new customer development and so on one.

Most of the time we are mixing up accountability and responsibility . Accountability is result and responsibility is related to the process.

For example, the person is accountable for increasing the sales turnover is responsible for maintaining a relationship with the customer once in a week or sending the queries or finalizing the quote and so on are responsibilities to achieve the sales turnover. This responsibility becomes the person's daily/weekly management activities. Also, we need to be clear on the reporting relationship for each position, in turn, the person occupying the position.

The above inputs of all positions will be the inputs for designing the visual organization structure. The business head plays a major role in defining the organization structure with strategic and tactic perspective.