Module 4 • Organising your business 2. Organisational structure
The organisational structure in a business is a formal arrangement of jobs. It indicates how different positions relate to one another and who is responsible for certain tasks. This arrangement tends to have the effect that more work is done by fewer people, with a higher level of satisfaction. The following might also be achieved: • Ensuring that all the important work, which is necessary to achieve objectives, is done. • To eliminate or minimise overlapping or duplication. • To match the skills and training of workers with the needs of the business.
Types of organisational structures 2.1 The bureaucratic organisational structure
In a bureaucracy, rules, regulations, and techniques of control are defined precisely. Bureaucracies are renowned for petty rules and regulations and the rigid application of these. It is highly unlikely that a small businessperson will adopt this type of organisational structure. It is mostly found in very large businesses and in government departments. However, the small business manager will have to deal with this type of organisational structure when dealing with government departments.
Activity 2
SA business growth ‘choked by rules and red tape’ Survey finds 37% of privately held business owners in South Africa cite red tape as their chief constraint, followed by a lack of a skilled workforce, at 36%
OVERREGULATION and red tape are the biggest constraints to business expansion in SA, according to a survey by accounting; audit and advisory firm Grant Thornton.
The survey found 37% of privately held business owners in SA cited red tape as their chief constraint, followed by a lack of a skilled workforce, at 36%.
The increasing complexity of regulations such as additional tax or governance requirements, labour issues, black economic empowerment, the time taken to register companies or change directors’ names was stunting the growth of business.
The second-biggest constraint to business globally was reduced demand for products — the effect of economic problems in the US and Europe. In SA, the second-biggest constraint to business was a shortage of skilled staff, said Mr. Nagar.
The Johannesburg Chamber of Commerce and Industry, said it had become “very intimidating” for young people to start a small business in SA because of the onerous regulatory environment. Dealing with crime and a lack of skills also added significantly to the cost of doing business in SA, he said.
When asked which service delivery elements affected businesses the most, 41% of businesses in SA rated utilities such as gas and electricity as having the greatest negative effect.
Other service delivery items included billing problems, taxation, poor roads, potholes and malfunctioning traffic lights.
Source: Business Day ANGUS MACMILLAN
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