Planning for Business Growth and Expansion Essay

there is a tremendous amount of information to be filmed when starting a business. Not only is there send offning for the business you are experiencing at the current moment, to maintain success an averer must plan forwards for growth and expansion. This planning should include the structure of the comp any as it grows as well as planning for any type of business product. I plan to discuss the detailed projects and plan regarding growth and expansion of a dot. com start up and the challenges that whitethorn be faced along the way. cable strains The business at hand is a dot. om start up that involves letting apartments to students. Phase One (see caseful page 6) has five employees. The original organisational structure of the association had three Salespersons, one score/ Billing person, and the birther. The owner handles all of the apartment maintenance, is an extra salesperson and performs any extra duties as involveed. Organizational structure jockstraps to define how blood tasks are formally divided, grouped, and coordinated, (Robbins, 2010).The Salespersons and the Accounting person are specialized into their plane sections but due to the weeny coat of the company there whitethorn be some overlap in duties. Phase Two (see example page 6) has developed very speedily and without planning. The company is currently at 30 employees and has grown 500% over the last six months. This growth has involve a more in depth look at each individual Job and has required more work specialization. Work specialization is the degree to which activities are subdivided into go Jobs, (Robbins, 2010).A monitorr has been brought in to strengthen the chain of command and fill in all the functioninges and employees to ensure each area is running smoothly. At this point, the small coat is still manageable but the chain of command is non a hard and fast rule with the wner still very twisting in the day to day aspects of the business. The owner still drives all of the finis regarding the business and is an example of a Centralized management style. Challenges of the business at this point mass be no formal Job descriptions, Jobs getting lost in the shuffle due to business growth and the owner and conductor trying to run the business at the same time.Phase Three (see example page 7) of the business becomes more involved in a variety of ways. Once a company grows to fifty employees, the absolute majority of labor laws begin to apply. The next forecast for growth is for two speed of light employees and is rojected for one year out. We begin to see a more de-centralized nest as operations of their divisions and are responsible for carrying out the objectives set by the owner. Human Resources is formed to manage the legal employee aspects of a company this size as well as recruiting, new hire orientations, payroll and any type of employee relations issues.The Sales Department has the largest growth due to the point that this depart ment brings in the most revenue. As this department continues to grow, support module allow for be leaseed to manage calendars, maintain files and any early(a) as needed duties. Where the sales staff may have been creating their own documents when the company was smaller, they may now rely on administrative help to perform their general maintenance of documentation. As the company grows, an Information engineering Department will be needed to create a net income for the business and ensure all employees have the technology they need.Sales representatives may require laptops as opposed to regular employees that can use a stand-alone personal computer. As growth continues, problems will occur which presents the need for a Help Desk department to correct computer roblems and help employees manage day to day technology challenges. As the company expands, so does the need for Maintenance. The Maintenance staff is responsible for cleaning and preparing an apartment to rent when an g ray-haired renter moves out. They are also responsible for responding to any problems with the rental units.In addition to the rental units, some maintenance employees will be delegate to cleaning and maintaining the corporate building that houses the employees. Looking to the future, it is important to plan leading to and create a formalized structure. The owner should create a committee statement and yearly goals to share ith the employee. Human Resources should have formal Job descriptions for each job title in the company. An appraisal process should be implemented and as the company grows, career paths should be created.There should be a formal employee orientation process with a well supposition out socialization process. The most important socialization stage is at the time of entry into the organization. This is the time to mold the employee into an employee in good stand, (Robbins, 2010). If an employee is not socialized properly and allowed to flourish in their positio n, they may be frustrated, resign, or cause problems within the department. Each department should have their own formal policies and goals that tie into the corporate goals of the company.It is important to formalize all policies and procedures in an effort to protect the company from law-suits and employee ethics charges. Formalized policies will chance upon it clear what the company stands for and how to enforce the rules and regulations. It will also be indispensable to create an employee management process for employees that are not performing up to standard. A written policy will enable managers to follow-through with employee writ of execution issues and not miss any steps that could create a financial obligation for the company. Phase Four (see example page 8) of the Growth and Expansion plan is for two into specific roles and models.The division of labor is highly specialized and grouped into individual departments. Each individual department reports into their departme nt manager creating a decentralized management process. Each manager then reports into the owner which is an example of a centralized management chain of command. The current set-up of each department utilizes a Bureaucratic organizational design style. Each department will have highly routine operating tasks achieved through specialization, (Robbins, 2010). All of the company policies and rocedures should have been developed and enforced.As the company continues to grow, each individual department will need to be assessed to evaluate if the current reporting structures is effective. speedy growth will require the additions of sub- categories such as assistant manager or supervisors that report to the individual department manager. Additional support Jobs may be needed and lor more specialized Jobs may be created as the business grows and changes. The company will need to learn to react to the ever-changing external environment of the business which could require changes to the orga nizational design process or structure of the ompany.Conclusion Starting a business can happen from inspiration or simply a great mentation as in the example for our study. There is much more to consider beyond the product itself. Organizational design and culture can make or break a company and be the determining figure as to whether your employees will stay and flourish or leave for a competitor.