15 Jul Creating Organisational Structure for Effective Communication, Co-ordination and Control

Creating Organisational Structure for Effective Communication, Co-ordination and Control

Simon Wallace | 15th July 2014

Human Resource Management includes assisting the board to create an organisational structure that allows effective communication, co-ordination and control. The effective arrangement of talent into the right structure encourages alignment, maximum output and the flexibility required to react to shifting market conditions, which in turn produces sustainable business growth.

Organisational structure evolves as the business grows from flat with few at start up to a hierarchy with many as the organisation scales. However, locating and effectively arranging talent to reap the benefits of great structure is a major challenge to all tasked with creating it!

Creating the right structure is only possible once you have determined: the strategic direction of the organisation; the results given by the Job Evaluation committee and the basic functions required for any organisation to operate effectively, namely Finance, Sales & Marketing, Operations and of course HR.

To populate your structure from this point is then quite straightforward:

1. Identify those key positions in the structure that make or break your result
2. Fill key positions with your best talent and the remaining positions with talent that already live your values
3. Issue and agree position contracts, targets and reward; making it clear to each that they must stick to their position, work and challenge the organisation’s systems to improve
4. Develop and equip all employees to properly do their job; give priority to your key staff and employ training, mentoring and coaching so that they consistently deliver high performance
5. Establish, communicate and implement a performance management system for control

These steps along with the need to identify and develop your replacement and other leaders in the structure right from the start will allow you to construct a commercially successful organisation that operates without you being there!

That is creating an organisational structure for effective communication, co-ordination and control.

Is your organisational structure helping you reach your goals?

Are you always working in and not on your business?

About the Author

Simon Wallace is founder of The Whole Thing Group and passionate about performance improvement. Creative entrepreneur and trusted advisor to some great companies that are achieving great things.