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Katelyn Ensley
011417311
D078: Task 1
12/12/2023
Kensl12@wgu.edu
A1. Choosing the right organizational structure for a new business is essential to success. For this new consulting business, I would choose the functional organizational structure. The main features of the functional structure are:
Departmentalization: each functional area of the organization is divided into departments based on specialized functions such as marketing, finance, human resources, etc. Each department has its own manager.
Hierarchy: functional structures have a clear and well-defined chain of command so there’s no confusion regarding authority and responsibility. Employees know to report to
their functional managers.
Specialization: since each department is focused on a specific function, employees become highly skilled in their function. Employees becoming experts in their respective functions increases operational efficiency.
Decision-Making: decisions are usually less complicated because they are centralized and made by the owner/CEO.
Resources: resources are used in the most beneficial way because they’re allocated based on functional priorities. This reduces waste, unnecessary spending, etc.
Standardization: typically has formal rules and procedures so there’s little room for unpredictability. Workers know what to do and when to do it.
Communication: communication is usually effective, but it can sometimes be difficult between the different functions. This type of structure applies to the consulting business in many ways. Delegating tasks efficiently is extremely important because there’s only three part-time employees. Creating functional departments such as social development, economic development, and environmental development will allow each employee to focus on their specific functions. Operational effectiveness is increased: resources are used most efficiently, there’s little to no confusion regarding roles or responsibility, and decisions are made by the owner. Everyone works towards the same organizational goals while performing separate but equally important tasks. A2. The Functional Structure and the Four Factors:
This structure supports the use of functions by allowing the most important tasks to be carried out by each one of the three employees, so the limited human resources are used effectively and efficiently. The employees can expand their knowledge in their area of expertise, need for more training can be easily identified by monitoring each function,
it encourages collaboration between functions and performance can be easily evaluated.
Using the three main areas defined in the mission statement of the consulting business as separate functions is the best way to ensure the goal of creating a more sustainable business community.
The functional structure supports the chain of command because it establishes clear, well-defined reporting relationship. Each function would typically have a manager to report to, but since each function only has one employee, they will report to the owner. As the business grows, another level can be added without much change to the chain of command.
The functional structure supports centralized decision-making for the consulting business because important decisions need to be made by top management, who then communicate the decisions down through the chain of command. This ensures efficiency
in making decisions, avoids confusion, and allows faster implementation. Having decisions made this way ensures the business goes in the direction its supposed to. Strategy is consistent and it aligns the company with the mission and vision of the owner.
A high level of formality is important for this new consulting business. It’s crucial, especially for startups, to establish a good professional image because it builds confidence in potential stakeholders and clients. Formal rules and policies lessen unpredictability because it establishes consistency in the way the business operates. These things foster trust in the company, which is essential for a consulting business whose clients rely on them for advice and solutions to their problems. Formality will also
make it easier as the business grows to add more employees.
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