Evolution of the Organizational Structure

When an organization has just been launched and only a small number of persons are involved there is generally ample opportunity for face-to-face communication among the members of the group and the need for a formal organizational structure is generally low provided that sufficient attention is paid to strategic planning and setting mutually agreed goals and objectives.  As organizations grow from very small (i.e., less than 20 employees) to relatively large (i.e., 80 or more employees), one notes significant changes in the management of workflow and structure becomes an important managerial challenge. At some point the range of activities and tasks that need to be performed within the organization expands to the point where the founders no longer have the time and skill to personally oversee all of them and a key challenge for the firm is the manner in which the founder delegate responsibilities and decision making authority to lower-level managers and new executives who join the founders as organizational leaders.  This report discusses some of the steps that should be taken for an orderly transition.

Written by agutterman

Founding Director of the Sustainable Entrepreneurship Project

One comment

  1. this is the transition when a CEO must find dependable managers that follow through. The key is to maintain the small business culture while while adhering to the new processes that are in place.


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