Business Structures of Small and Large Businesses (Essay Sample)

Organizational Structure
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Organizational Structure
The two companies chosen for this study include the Tornado, a small restaurant in California, and ready-made garment manufacture in Texas. The two organizations independently deal with very different products hence have employed very different organizational structures. Organizational structures can be defined as how the flow of activities in an organization is directed to achieve set goals and objectives.
Ready-made garment manufactures
Describe the existing organizational structure
The organizational structure employed by the ready-made garment manufacturers is the functional organization structure. Functional organization structure is mainly characterized by its grouping nature. In a functional organization structure, employees are usually grouped according to the daily roles associated with the business operation (Dedahanov et al., 2017). The model is usually vital in the business due to the nature of the business, as their daily roles in the business are usually defined. Hence, the structures are very efficient in easy supervision and allocating work (Joseph & Gaba, 2020).
Why has the structure been chosen and, what are the efficiency and the effectiveness of the design?
The main reason for choosing the method is its comprehensive nature and excellent output in the business. The functional organization structure allows the employees to be grouped in and handle specific tasks best, leading to excellent work output. The employees only handle what they can handle to produce a perfect result. Additionally, a functional organizational structure creates a clear operation path, motivating the employees to perform their duties perfectly (Dedahanov et al., 2017).
Organization chart
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Is there a thought of changing the current structure?
The structures s very effective and more comprehensive in managing and organizing the activities in the business. There is no possibility of changing the business's organizational structure, as the structure perfectly satisfies the organizational need as described in the management policy of the business. Additionally, the organizational structure perfectly matches the nature of the business, which is more technical.
Tornado restaurant
Describe the existing organizational structure
The organizational structure used by Tornado restaurant is the hierarchical organization structure. Hierarchical organizational structure is an organization structure where all the employees and entities are usually subordinate to one entity. The hierarchical organization structure is usually characterized by one more superior individual and makes critical decisions affecting a business (Dedahanov et al., 2017).
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Why has the structure been chosen?
One of the reasons the restaurant uses the hierarchical organization structure is that it's the clear lines of operation and management within a business. In a hierarchical organizational structure, every employee is well informed about the business organization's authority and where to report to in case of a problem (Joseph & Gaba, 2020). Each person in the business clearly understands