7 Essentials of a Sound Organisation Structure


7 Essentials of a Sound Organisation Structure

1. Determining the Objectives

In determining the objectives, the questions generally posed are: What is our business? What should it be? What will it be? Answers to these questions will determine what the objectives of the business are.


In terms of achievement of these objectives both for the enterprise as a whole and for each of its components, formulation of policies, programmes, plans and schedules become necessary.

2. Determining Key Activities:

The determining of the key activities to be carried on for achievement of the objectives, under guidance of the formulated policies is the second one.

3. Dividing and Grouping Related Activities:


All related activities have to be divided and grouped and rendered into a simple, meaningful, understandable, exhaustive organisational structure.

It needs to be emphasized here that the simplest organisation structure that will do the job is the best one. It will not create any problems. The simplest the structure the least that can go wrong.

4. Assignment of Essential Work:

Now important and essential work is to be assigned clearly and specifically to the various units and positions.


5. Determining Requirements and Qualifications of Personnel:

The exact requirement of personnel needed to man the positions and their qualifications have to be determined.

6. Staffing the Organisation:

Persons with requisite qualifications need to be recruited.


7. Establishing Methods and Procedures:

Methods and procedures that will help to achieve the objectives of the organisation will have to be established.

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