Week 5 discussion response | Business & Finance homework help

Please respond to 2 peers

My Post:  

The organizational structure, which provides counsel to all employees, lays out the official reporting linkages that regulate the company’s workflow. A thorough diagram of a company’s structure makes it simple to hire more staff and gives a flexible and ready method of growth. No a single correct organizational structure fits every business. A centralized organizational structure is typical in small enterprises, with the owner making all the decisions. It can work effectively if there are only a few staff. When the company expands, and more people are hired, a new structure may be required. Choosing and implementing the proper organizational structure for your company can help you maximize profits. It would help if you first created a strategic strategy before deciding on the best organizational structure for your company.

According to investing gurus Charles Schwab, developing a strategic plan is a continuous activity that may require you to modify your organizational structure to change business conditions. You can poll your staff to see whether their operational and career development needs are satisfied to see if your organizational structure is correct. If your profits are stagnant or dropping, your client or employee happiness has declined, or your expansion objectives have changed, your structure may be inappropriate.

Peer 1:  

The reason there is no single organizational structure ideal for every business is that not every business is the same and there isn’t going to be one that fits them all. Each business is different and has different goals so one organizational structure isn’t going to fit them all. I think the importance isn’t about creating a single organizational structure that is ideal for all businesses, but instead a business should look to see which organizational structure fits their business. Businesses should look at their business and figure out which one works best for them. Is it the functional structure? This type of business is organized into departments and each department has managers who report to the department heads and then the department heads report to the CEO. Another important question to ask is why is organizational structure important? Why when creating a business whether it is small or large should they care about which organizational structure they should choose. Organizational structure is important because it provides employees with guidance by laying out official reporting relationships that govern the workflow of the company. Creating an outline of the company’s structure makes it easier to add new positions to the company, as well, as an efficient way for the company to grow when they need to. 

Ingram, D. (2019, March 12). Why is organizational structure important? Small Business – Chron.com. Retrieved April 19, 2022, from https://smallbusiness.chron.com/organizational-structure-important-3793.html

Peer 2:

 Organizational structure is the method used by businesses to govern the work flow to achieve their company goals.  The reason that there is not a universal organizational structure method is because no two businesses are the same.  Each business is unique to themselves.  Using an organizational method for a large manufacturing company will not work for a small CPA firm.  Having an organizational structure in place is very important to the success of a company.  It helps to improve efficiency, departments work like well-oiled machines increasing their productivity. Without a formal organizational structure employees will find themselves running into difficulties without knowing whom to report to.  

There are three common types of organizational structures that each bring their own set of advantages; by function, by product, and by geography.  Organization by function is where the departments are based on the role or function they have.  Organization by product is where related products are grouped together to form departments.  These company’s could manufacture many different product lines, consumer appliances and aviation parts for example.  Organization by geography organizes itself based on the geographic location, either by cities, states, countries, or continents.  


Ingram, D. I. (2019, March 12). Why Is Organizational Structure Important? Small Business – Chron.Com. https://smallbusiness.chron.com/turbotax-taxes-13771756.html (Links to an external site.)

Dlabay, L. R., & Scott, J. C. (2008). International Business (4th ed.). Cengage Learning. 

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