Maintaining Organizational Structure

When Entrepreneurs start their businesses, they are often used to doing  mostly everything themselves. As they slowly grow the organization, they build a structure with people in key functional positions and clearly defined supervisor-subordinate relationships.

Due to their founding the company and established relationships with initially-hired employees,  Entrepreneurs sometimes bypass the established organizational structure and direct employees at lower levels. This also encourages these employees in turn to bypass their supervisors and deal directly with the Entrepreneur or CEO.

While emergencies and critical decisions require a breakdown in the organizational hierarchy, organizational structure and the established supervisor-subordinate relationships need to be maintained to facilitate people to “Do the Right Things” and build companies for long-term growth .

This does not imply that Entrepreneurs should not maintain relationships at all levels in the organization. Instead, Entrepreneurs should cultivate an environment where the key management team and supervisors are the decision makers within their sphere of responsibility instead of relying on or promoting all significant decisions to be made by the Entrepreneur or CEO.

Ravi Patel

www.patelCFOservices.com

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