Optimization of organizational structure of an enterprise: how it happens

Approaches to optimization

Optimization of business processes in the sphere of organizational structure of an enterprise is a process of improvement of the structure of an enterprise, its cooperation with the market and interior cooperation in a way which helps to achieve objectives more effectively within the frames of set strategies.

Necessity of structural changes in an enterprise can be caused by the following conditions:

  1. Changes in situation on the market;
  2. Resetting of objectives and strategies of an enterprise;
  3. Achieving of certain stages of development of an enterprise when the existing system tightens the following growth of an enterprise.

Actually, most structures of enterprises cannot be called optimal: tools for working on the market are not enough, interior cooperation is contradictory and the management is ineffective. This can be caused by the lack of management experience and knowledge of managers on practical effectiveness of methods of cooperation with the market or a quick changing of economical situation. Non-optimal structure is often able to bring profits and to provide the existence of an enterprise that is why it is kept unchanged until the crisis comes.

Business process optimization is able to:

  • Correct methods of working on the market (or to implement new ones),
  • Eliminate contradictions and doubling in interior cooperation,
  • Solve problems caused by imperfections of the structure.

Optimization of business processes in the sphere of structural organization can have a significant effect on the work of an enterprise:

  • Reducing of non-production expenses and extinction of thievery in the enterprise;
  • Regrouping of personnel, getting rid of the ballast;
  • Improving of the methods of cooperation with old customers;
  • Increasing of effectiveness of working with new customers;
  • Releasing of higher management from the routine and appearing of the opportunity to fulfill strategic tasks;
  • More effective distribution of the budget, accelerating of financial turnover.

Ideal effectiveness is impossible. When business process optimization is launched, the effectiveness lowers first. Only after the process of implementation of new techniques is finished and new approaches start functioning, the effectiveness increases significantly and an enterprise is able to assess profitability of these improvements.

Organizational structure of an enterprise covers and has its impact on all levels of business. That is why it is important to keep this system optimal and to provide assessment of its effectiveness from time to time in order to prevent recessionary processes.

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