The organization of a business (business organization) is an administrative function comprising the organization, structuring and integration of organizational units and resources (material, financial, human and technological) of a company as well as the establishment of their powers and relations between them.
The organization is the second administrative function after planning and before the direction and control. This allows for better allocation and more efficient use of company resources needed to carry out the activities and tasks necessary to turn to develop and implement strategies and achieve the objectives in planning; but also allows better coordination between the different organizational units of the company, and better control of staff performance and results.
The organization of a company starts by dividing this into divisions, departments or areas that group activities and tasks with a certain homogeneity, and the establishment of hierarchical relationships that will between them.
There are several types of divisions that can take a company, the main those mentioned below:
Division by functions
In the division by function divides the company into divisions, departments or areas that group activities and tasks necessary to perform a particular basic function of the company.
The main advantages of this type of division are allowing to take full advantage of the technical skills of the members of the company since the groups according to their specialization and economies of scale because it uses the resources of the company comprehensively.
This type of division is the most used by companies (especially SMEs) at their highest levels, due to its simplicity and easy control it allows.
In the product division divides the company into divisions, departments or areas that group activities and tasks necessary to produce or market a product or service of the company.
The main advantages of this type of division is to facilitate coordination among members of the company as it allows these to focus first and foremost on the product, and allows flexibility in production units since these vary in size without interfere with the general structure of the company.
This type of division is often used by large companies with a wide variety of products or types of products but few distinct from each other.
Division by geographical location
In the division by geography divides the company into divisions, departments or areas that group activities and tasks necessary to operate in a given geographical area.
The main advantages of this type of division are that improves the efficiency of the activities and tasks required to meet a given market, understand and adapt better to the conditions and needs of this, and establish clear responsibilities as each division operates like an independent company.
This type of division is often used by large companies that serve large geographically dispersed markets.
Division by customers
In the division by customers divides the company into divisions, departments or areas that group activities and tasks required to meet a certain type of customer.
The main advantages of this type of division are allowing members of the company to better know the needs, preferences and other characteristics of clients, and focus first and foremost to achieve your satisfaction.
This type of division is often used by businesses that cater to different types of customers with distinct needs and characteristics.
In the division process it divides the company into divisions, departments or areas that group activities and tasks necessary to perform the step of a process.
The main advantage of this type of division is that it allows greater efficiency in carrying out the process involving as it allows him to concentrate more efficient and the resources required to perform each of its stages use.
This type of division is often used by producers or industrial firms in the lower levels of their production areas or operations.
In the projects division is divided the company into divisions, departments or areas that group activities and tasks required for a particular project of the company.
The main advantage of this type of division is that it allows greater efficiency in the implementation of projects involving as it allows him to concentrate more efficient and the resources required to perform each of these use.
This type of division is often used by large companies that develop complex projects that require large amounts of resources and time for execution.
In practice it is difficult to find a company that has only one type of division. It is not uncommon for companies to have a major division at the highest level according to their predominant activities and tasks (for example, a company that produces several distinct types of products together is common to divide the products, and company operating in large, geographically dispersed markets is common to divide by geographic location), but with other divisions in his other levels. For example, a company at the highest level could have a division by functions, but within the production department have a product division and department within a particular product have a division process.
Once the company has divided and identified divisions, departments or areas that will have the next step in the organization of a company is to specify the jobs that have each of these units, functions and tasks performed each, their duties and responsibilities, and relationships they will have with the other positions in the company. For example, through manual functions positions or positions that have the marketing area and the roles that each of these will have specified.
And once you have specified the jobs and corresponding functions, the next step is to define the various work processes or procedures that have the company. For example, through a flow chart or a manual process that will process the production area to produce a given product or process that will carry out an activity or task specified.