Table of Contents
Efficient company organization promotes high profits. It strongly influences all firm’s departments. Low organizational atmosphere affects HR sphere, sales, marketing and finance in various ways. Thus, financial problems demand reducing different expenses, HR sphere suffers from insufficient unprofessional employees, sales department losses additional opportunities, and marketing sphere does not promote products appropriately. The paper analyses how organizational structure of a company affects its financial, HR sales and marketing departments in their operations.
Finance and Organization
The problems in the sphere of finance will compel owners of business to think over what departments are important. Some will be eliminated while some will be absorbed by other departments. Even in small business, the first reductions affect the divisions that are concentrated on the future. If cuts are made blindly, bodies that are mostly concentrated on future growth can be the first to be eliminated. If there is natural competition between departments such as sales in comparison with production, these gaps will extend. Financial problems will demand that leadership reduce production workplaces, having dismissed some employees. Those, who remain, will find that their duties have increased. Even if business improves, the company cannot hurry to restore its staff and will continue to have the personnel doing doubled work (Bondigas, n.d.).
Supervision of the appearing financial problems helps track how they can occur in the constructions of the plan given for the organization. In such case, there is a bigger chance to solve these problems systematically. If the organization is unaware, changes will be harsher.
HR and Organizational Structure
The aspiring executives often start business as the sole proprietorship or partnership, in which owners are the only staff of the companies. Successful companies are inclined to employ workers over time to take more main work, tasks, and functions of management. When the company grows, it can create Department of Human Resources that is responsible for management of employees and their welfare (Gomez-Mejia, Balkin, & Cardy, 2004).
Departments of human resources employ the staff and define what workers are employed. Recruiting process, as a rule, includes tasks, such as consideration of the summary, participation in fairs of vacancies, and carrying out several interviews. It is a duty of recruiters to guarantee that the company engaged employees with appropriate skills and knowledge for the organization to be successful (Gomez-Mejia, Balkin, & Cardy, 2004).
HR’s frequent duties include adjusting distribution of a salary for the employees and advantages to answer any questions that employees have about remuneration, grants, and advantages. For example, if the employee is sick and does not understand how medical insurance works, he can contact human resources for help. In the same way, if the employee does not receive as much payment as he/she expects, he/she can ask HR to explain everything. If workers do not receive timely and friendly service from Department of HR, it can cause irritation that negatively affect morals of staff or work (Gomez-Mejia, Balkin, & Cardy, 2004).
Finally, hiring of employees enters a set of risks, such as the wounds connected with work, disputes, and disobedience. Employees of HR are responsible for processing of workers’ compensation, labor protection, settlement of disputes, and discipline. The way with which the Department of HR solves these problems can have serious financial consequences for the organization. For example, if the employee complains about the safety issues leading to his/her wounding, he/she can make the claim to his/her employer.
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In modern economy, the company has to develop constantly new opportunities and technologies. Part of this development ensures that employees have skills and knowledge advanced in their areas. The equipment of workers with skills they need is done by means of continuous training, education, and responsibility of managers and staff.
The traps described above cannot be avoided without leading people well. Actually, as one will see, data testifies that the organizations can create stable and consecutive competitive advantage only by means of development of its people or “the human resources”. Each person who works in the organization plays an important role in the management of people. It is especially important for those who seek to create, consult, and head future organizations.
Obviously, instruments of marketing, finance, operations and other disciplines will be necessary. Actually, the principles of these areas can even be used to operate people better.
Besides, even using traditional means will demand bigger understanding of their influence and attitudes towards people. Judee Lyyuent, one of today’s “hot” managers and finance director, told that even the financial analysis has to promote the correct behavior of people (Wright, Dunford, & Snell, 2001).
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Sales and Organizational Structure
In case of the product or service, one should effectively sell it. If one is not able to put efficiently what he/she sells, he/she cannot increase the sales. Inefficient organizational structure can harm the most obvious opportunities, but also can create problems that lead to serious financial consequences. The understanding of influence of bad structure of the company will help to take steps and guarantee the management of internal operations to help bring the business to the new level (Ashe-Edmunds, n.d.).
The organizational structure treats purpose of administrative and other functions. Many small business enterprises start with flat organizational structure where some key people are subordinate and work directly with the owner. When the companies grow, they are prone to create hierarchical structures that include heads, departments, managers, and subordinates. They then make tables of the organization that show the point of view of employees (Ashe-Edmunds, n.d.).
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The poor organizational structure can lead to misunderstanding because people cannot be sure who has information or where to send important messages. For example, the sales manager in the small company can engage the new client, signing a form to help new clients to start ordering easy, or getting permission from the owner to use a form. If the accountant does not approve the new form, one cannot know how to qualify new customers to credit accounts or quantify them properly. It can lead to the delayed orders and long expectation for payment from clients. It can also bring not receiving of products compelling the customers to stop working with the company and find other supplier (Wright, Dunford, & Snell, 2001).
Marketing and Organizational Structure
Various executives and business practitioners in the sphere of marketing admitted that it is important for marketing aims to have efficient organization. Marketing department focuses on the brand functions and all the products. Generally, the marketing director heads it. Each company chooses its own marketing strategy and organizational area. Specifically, the director is assigned to certain category of products in order to ensure the high marketing functioning. There is an example of Procter&Gamble where each product has its own manager. Thus, pricing, distribution strategies, budgets, targets, and other relevant aspects of marketing depend on the organizational structure. Brand managers approve, supervise, and direct advertising that is developed for particular product. In addition, brand managers are responsible for overseeing annual budgets on advertising (Vargo & Lusch, 2004). In case the organizational structure is poor, company and its products risk being not promoted that can lead to loses in profits.
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Thus, to maximize the ability of growth for the business, one has to create a plan for the future, opportunities, and not only wait for the new business. HR, finance, sales and marketing depend on the organizational structure. Without organizational structure that does not place attempts of top managers or employees together on a regular basis, it will be difficult to create an effective long-term strategy.