HOW TO DESIGN SCALABLE ORGANISATION STRUCTURE FOR SMES?

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Origin of Chaos
The long-term goal of any startup/small scale organization is to survive and grow in terms of its financial as well as organisational capabilities. The growth of an MSME fundamentally depends on its sustainability and scalability, that is, how an organisation can well adapt and thrive to its increasing demands. The process requires a “solid foundation” for an organization at its nascent stages to succeed, which includes, setting up a solid vision & mission and a resolute organisational structure, which is lacking in most of the Indian startup/MSME organization due to its conventional nature and approach.

The Chaos
When an organization is at its emerging stage, resources play a vital role in building and transforming the organization, often these resources are recruited with a vague job description and are very of often expected to take up multiple responsibilities, in certain case they are over burdened beyond their abilities, which leads chaotic and confusing work environment. The fuzzy set of roles and responsibilities usually leaves the resource in a schizophrenic state, which makes the role “Un-Workable”. Generally, this might forefront employees to walk-out from the organization (due to its bureaucratic nature). Poor/No organisational structure results in a set of contradictions amongst employer and employee, which indeed creates confusion, stress, and conflicts.

Resulting Challenges
In which case replacing the role with new resources becomes difficult due to lack of standardised job descriptions and multiple lines of reporting which are contradictory. This would slow down the decision-making process, affects the organisation’s productivity and efficiency of the business process. To overcome this, an Organization should deep-root its Organisational structure as a scalable one to sustain for a longer-term.

The Solution
To lay the foundation for this process, they should begin with developing an organisational architecture that compliments the business’s KRA (Key Result Areas) while simultaneously identify and define standardised roles and responsibilities for each position, develop the chain of command, establish the flow of information along with line of reporting. This needs to be accompanied by a bulletproof recruiting system that is able to identify organisational talent need accurately, recruit right talent, onboard new employees quickly and absorb the, seamlessly in to the organisation.

The Gains
A clear organisational structure defined at the initial stage would help in identifying the accountability, mapping key metrics, aligning towards the goals, identifying and projecting overheads. This would help in eliminating redundancies, optimising the business process, improving efficiencies, thereby the companies can skyrocket their finical and organisational capabilities.

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