Management Organisational Structure, Part 2

A business’s organisational structure is the foundation of its management system, defining the principles for distributing functions, resources, and responsibilities, ensuring the company’s efficiency and its ability to adapt to changes in the external environment.

The main business units are:

  • Management
  • Human Resources
  • Administration
  • Financial Management
  • Accounting
  • Product Production
  • Marketing
  • Advertising
  • Sales
  • Customer Service

Knowing the divisions that make up any business (including dental), we understand that regardless of the size of the business (small, medium, or large), the functions of these divisions must be performed.

No matter how many people work in your business today, if any function is not being fulfilled at any given moment in the life of the business, your business is ineffective!

A business organisation, as a system, is exactly the same as the human body!

Business Organization Levels:

DIRECTORATE – the top level:

  • Directorate (DIR)

OPERATIONAL MANAGEMENT / ADMINISTRATION – the body level:

  • Human Resources Management (HR)
  • Business Administration (ADM)
  • Financial Management (FIN)
  • Accounting (ACC)
  • Production, Intellectual Property (PRO’1)

SPECIALISTS – the arms and legs of the business:

  • Production, Material Property (PRO’2)
  • Marketing (MAR)
  • Advertising and PR (PR)

CUSTOMER SERVICE – providing products and related services to the client:

  • Sales (SAL)
  • Customer Service (SRV’1)
  • Loyalty Programs (SRV’2)

Management Organisational Structure:

DIRECTORATE

DIR


OPERATIONAL MANAGEMENT / ADMINISTRATION

HR

FIN

PRO’1

ADM

ACC


SPECIALISTS

MAR

PRO’2

PR


CUSTOMER SERVICE

SRV’1

SAL

SRV’2

The next level of detail is «Responsibility» by department. We dive deeper into the business structure.

DivisionNameResponsibility
DIRDirectorate• Complete order in all departments
• Stable (at least the desired) company profit year after year
• Complete order in the disposal of earned profits
HRHuman Resources Management• Recruitment and onboarding
• Legal support
• Talent pool
ADMAdministrationEffective business support on the following issues:
• Security
• Infrastructure
• Comfort and convenience
• Interaction with external social and public services
FINFinancial Management• Systematic financial control
• Systematic operational financial management
• Financial planning and control (minimum 1 year)
ACCAccounting• Accuracy and timeliness of periodic reporting
• Tax optimisation
• High-quality and timely handling of daily transactions
PRO’1Product Line Development (PL)• PL planning
• Resource support for PL development
• Direct development of the PL
PRO’2PL Production• Resource support for production
• Production control
• Product delivery aspects of the company to customers
MARMarketing (market management)• Market analytics
• Marketing Planning (MP)
• MP implementation control
PRAdvertising and PR• Advertising media market monitoring
• Advertising budget control
• Advertising production and placement
SALSales• Sales planning
• Sales support
• Sales development
SRV’1Customer service (CS)• Tracking CS trends
• Determining the best techniques among trending ones
• Implementation and effectiveness analysis
SRV’2Loyalty programs• Budgeting
• Planning
• Project-based plan implementation

A very important point: there should be one person responsible for each functional unit. However, one person in a company can be responsible for several functional units, and sometimes for all of them!

Everything depends on the maturity level of the business organisation and the number of employees within the company.

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