Organizational

structure
Organizational Structure
An organizational structure is:

• An explanation of workflow and responsibilities

• A day-to-day guide governing employee tasks, interactions and
reporting
• A quick means for employees to understand where they need to go
for help or answers for specific issues
Organizational Structure
• Organization Structure (Design) is both an art and a science.
✓As an Art, requires one to be creative with their imagination,
conceptualize ideas, and understand culture and behaviors.
✓It is also considered a Science because specific knowledge along with
objective observations, measurement of data evidence, and
reasoning to establish general rules or conclusions drawn from facts
or examples must all apply- not forgetting testing hypotheses based
on a set of benchmarks.
Organizational Structure
• Organizational structures are used to portray the
relationships and chain of command between
individuals in a company, sometimes across positions,
departments, and regions.
Organizational Structure
• 3 factors that influence organizational structure

1. What is the long-term vision for your business?

2. What have you promised your customers?
3. Based on your marketplace presence (customer promise), what type
of culture do you need to deliver on that promise better than your
competitors?
Organizational Structure
• 1. What is the long-term vision for your business?
• What’s the purpose of your business, and what do you hope to accomplish
(achieve) in the future?
• Your organizational structure is a blueprint (scheme, plan) for how you will
realize the vision – day-by-day
Organizational Structure
• 2. What have you promised your customers?
• Who’s your customer, and what are you fundamentally promising them?
• How do customers interact with your business, and what do they expect in
those interactions?

• Your customer is the ultimate decision maker.

Everything needs to be filtered through that lens (object-glass).

• How you decide to organize your business must support the delivery of your
customer promise.
Organizational Structure
• 3. Based on your marketplace presence (customer promise), what
type of culture do you need to deliver on that promise better than
your competition?
• In other words, how do you need to be organized internally to be externally
successful?
• Consider how your company functions to achieve its goals.
• To do so, ask yourself these questions:
• What type of company culture best serves your customers?
• How can your employees and teams best work together to achieve those goals?
• How are decisions made now, and is there a better way?
• What level of authority is needed to make decisions?
Departamentalization
When companies grow, they need to implement new
organizational structures to ensure communication, maintain
control and allow for additional expansion.
Departmentalization is a structure that helps an organization
continue expanding while still allowing company leadership
to monitor employees and uphold company-wide standards.
Departamentalization
• Understanding how businesses create departments can
help you identify how your workplace operates.
• I will explore how departmentalization works, review
common department types and explain how
departmentalization benefits a workplace.
What is departamentalization?
• Departmentalization is an organizational structure that
separates people into groups, or departments, based on a
particular set of criteria.
• These departments have their own leadership and work
together to complete tasks. With large or complicated
projects, multiple departments may work together.
Departamentalization
The primary objectives of businesses that choose to
implement departmentalization:
• Maintaining control
• Simplifying operational processes
• Grouping specialized activities together
• Increasing overall efficiency
• Ensuring responsibility and accountability
Departamentalization
Some popular types of departmentalization
• Functional
• Product
• Process
• Customer
• Geografic
• Matrix
Types of departalization
Functional departamentalization
• In this kind of departmentalization, the company creates departments
based on the functions; they perform for the company. For example,
you will head together all the specialists related to finance under a
finance department and with marketing under that department.
• Functional departmentalization allows the organization to staff all
important positions with functional experts and facilitates
coordination and integration
Geographic departamentalization
• When a company organizes departments along geographic lines, it is
called geographic departmentalization. Multinational firms have their
offices all around the world, and they have created departments
based on the regions to handle company activities.
• Geographic departmentalization is the grouping of employees based on
their physical location. This type of departmentalization can be helpful
when an organization has geographically dispersed customers.
Process departamentalization
• When a company groups activities by the production processes, it is
known as Process Departmentalization. The departments will need
adequate material and manpower to conduct their operations and
tasks smoothly.
• Departmentalization by process or process departmentalization is
when the creation of departments is based on the production process
of a product. Based on the process, the activities are grouped.
Product departamantalization
• Product departmentalization becomes vital when manufacturing,
marketing, and handling of each product hold due significance for the
company. It gives full responsibility to every product and ensures
specialized production facilities.
Customer departamentalization
• When a company puts its focus on customer needs and wants, it
creates departments in accordance with different class or type of
clients and customers. This is known as customer
departmentalization.
• An organization is classified into various departments based on
multiple customers’ nature or customer groups. In brief, customer
departmentalization is done to serve each of the customers better &
thus, increasing profit with maximum customer satisfaction.
Matrix departamentalization
• Matrix departmentalization attempts to combine functional and task
force (project) departmentalization designs to improve the
synchronization of multiple components for a single to improve the
economics of scale, and to better serve the customer and company.
• This type of departmentalization integrates project and functional
departmentalization to improve economies of scale.
Matrix departamentalization
Business Plan
• A business plan is essential for the inception (start), growth
and overall success of a company. These plans provide a
business with a vision for the future and a clear strategy
for how to expand.
Business Plan
• There are several essential components of an effective
business plan, and understanding each of these
components can help to create a plan that leads the
company toward success.
Business Plan
Why are business plans important?
• Business plans are important for several reasons, with one
of the most prominent reasons being that they provide a
clear outline of action that companies can take to reach
their goals.
Business Plan
• These plans may give an organization clarity about how
viable their company is and what it needs to grow and
prosper. Business plans help establish specific steps that
companies must take to start their business and promote
their success.
Business Plan
Business plans are also important because they:
• Provide insight as to what resources the business needs to reach
its goals
• Establish a clear timeline of when a company can expect to achieve
goals
• Can help a company determine the steps to take to expand into a
new market
• Offer a straightforward way to track progress as a company grows
• Enable business owners to predict and plan for potential risks
• Allow investors to see the viability of a company
 Business Plan

Business plans don’t need to

be thousand-page documents.
The critical factor is that they
meet the needs of your
business.
Business Plan

10 essential components of a
business plan
• Effective business plans contain
several key components that
cover various aspects of a
company's goals. The most
important parts of a business plan
include:
1. Executive summary
• The executive summary is the first and one of the most
critical parts of a business plan. This summary provides an
overview of the business plan as a whole and highlights
what the business plan will cover. It's often best to write the
executive summary last so that you have a complete
understanding of your plan and can effectively summarize
it.
• The executive summary contains the organization's mission
statement and the products and services that the company
plans to offer or currently offers. It may also want to include
the reason for starting the business if the business plan is
for a new organization.
2. Business description
• The next part of the business plan is the business
description. This component contains a comprehensive
description of the company and its goals, products, services
and target customer base. Provide details of the industry
your company plans to serve, along with any trends and
major competitors in the industry. The description of the
company should take into account the experience of
individual teams in the industry and what distinguishes the
company from the competition.
3. Market analysis and strategy
• The purpose of the market analysis and strategy component
of a business plan is to research and identify a company's
primary target audience and where to find this audience.
Factors to cover in this section include:
• The geographic locations of company’s target markets
• The primary pain points experienced by your target
customers
• The most prominent needs of the target market and how
the products or services can meet these needs
• The demographics of the target audience
• Where the company’s target market spends most of their
time, such as particular social media platforms and physical
locations
• The goal of this section is to clearly define company’s target
audience so that it can make strategic estimations about
how the product or service might perform with this
audience.
4. Marketing and sales plan
• This section of the business plan details how you plan to market and
sell your products and services. This section includes:
• Anticipated marketing and promotional strategies
• Pricing plans for the company's products and services
• Sales strategies
• Reasons why your target audience buys from the company compared to
competitors
• Unique organization selling proposition
• How do you plan to present your products and services to your target
audience
5. Management and organization description
• This section of your business plan explores the details of
your business's management and organization strategy.
Introduce your company leaders and their qualifications
and responsibilities within your business. You can also
include human resources requirements and the legal
structure of your company.
6. Products and services description
• Use this section to further expand on the details of the
products and services your company offers that you
covered in the executive summary. Include all relevant
information about your products and services. This includes
how you plan to manufacture them, how long they can last,
what needs they may meet and how much you project it
might cost to create them.
7. Competitive analysis
• Add a detailed competitive analysis that clearly outlines a
comparison of your organization to your competitors.
Outline your competitors' weaknesses and strengths and
how you expect your company might compare to these.
Include any advantages or distinctions your competition has
in the marketplace. In addition, explore what makes your
business different from other companies in the industry,
along with any potential issues you may face when entering
the marketplace, if applicable.
8. Operating plan
• This part of your business plan describes how you plan to
operate your company. Include information regarding how
and where your company plans to operate, such as shipping
logistics or patents for intellectual property. The operating
plan also details operations related to personnel, like how
many employees you hope to hire in various departments.
9. Financial projection and needs
• The financial section of your business plan explains how you
anticipate bringing in revenue. If you need funding for your
business, this section also describes the sources and
amounts for that funding. Include your financial statements,
an analysis of these statements and a cash flow projection.
10. Exhibits and appendices
• The last section of your business plan provides any extra
information to further support the details outlined in your
plan. You can also include exhibits and appendices to
support the viability of your business plan and give
investors a clear understanding of the research that backs
your plan. Common information to put in this section
includes:
• Resumes of company management and other stakeholders
• Marketing research
• Permits
• Proposed or current marketing materials
• Relevant legal documentation
• Pictures of your product
• Financial documents
Management section in the Business Plan
• When developing a business plan, the 'management section'
describes your management team, staff, resources, and how your
business ownership is structured. This section should not only
describe who's on your management team but how each person's
skill set will contribute to your financial results
Ownership Structure
• This section outlines the legal structure of your business. It may only
be a single sentence if your business is a sole proprietorship. If your
business is a partnership or a corporation, it can be longer. You want
to be sure you explain who holds what percentage of ownership in
the company.
Ownership of Bank Handlowy (Citibank Polska)
Internal Management Team
• The internal management section should describe the business
management categories relevant to your business, identify who will
have responsibility for each category, and then include a short profile
highlighting each person's skills.
Dates of the Exam
• 30 January 2023 – zero term (bonus): if you pass it's great

• 6 February 2023 – First term (first chance)

• 20 February 2023 – Second term (second chance)

• The time to start and finish the exam is between 10:10 and 12:05
• The time to complete the test is 30 minutes