Internal problems are common for most of startup businesses. Primary of these are the organizational problems, which include leadership issues and group structure issues. This is especially true for companies that are started and staffed by peers or friends. The organizational structures of many start-up companies are less formal. The main advantage of this setup is the high flexibility in terms of dealing with the everyday challenges. Start-up businesses organizations do not yet have well-established protocols or policies. Leadership conflicts may arise if there is no proper delegation of tasks or if the tasks are delegated to the wrong persons. Many of the employees’ roles have the tendency to overlap and become redundant if not properly delegated. Consequently, this leads to operational inefficiency and squandering of resources.
A few new entrepreneur and business managers are not very comfortable when assigning certain types of duties. This is because either they are afraid that their authority might be compromised or they do not have sufficient confidence on the competencies of their staff. This is not a good attitude which may only lead to work backlogs, making it very counterproductive. It may also alienate some of the staff. Delegating tasks, including managerial and leadership tasks, does not necessarily mean surrendering authority but a positive means of showing trust. It is crucial that business owners and managers must be capable of identifying and training potential leaders.
Nobody is irreplaceable, no matter how competent or skillful they may be. All business entities must always give employees the chance to move upward or laterally within the organization in terms of duties and obligations. Managerial and technical jobs always require highly competent people. Nonetheless, this does not automatically imply that the people who occupy managerial or technical positions should not be replaced.
In a real world scenario, a company must have regular training programs for the different company positions. This is necessary to anticipate possible vacancies. These vacancies may occur due to promotion, resignation, retrenchment, disability, or death. All the needed trainings must be provided to the successors or replacements of curtain positions. In this manner, the position can easily be filled when vacancy occurs. The company will have a smoother transition between vacancies.
The structure of an organization is among the most crucial issue that may cause problems. The organizational structure of a company is directly related to the issues of leadership and delegation. Distributing the various tasks and the hierarchy are part of the organizational structure.
The flexibility of most new business organizations eventually give way to highly structured and regimented arrangement. This happens because of the natural learning curve of organizations in terms of dealing with operational challenges and market demand. As a business becomes more experienced, it tends to develop more efficient means of production, marketing, distribution, and internal management.
The streamlining of the organizational structure should be among the primary priorities of a growing business organization. The unnecessary redundancies and operational inefficiencies should be removed. It is very important that all the unnecessary task duplications must be removed. Accomplishing a well- streamlined company structure will aid in significantly improving the profitability of the business. However, this does not necessarily mean that the organization should be inflexible or highly centralized. Efficiency also entails that capacity for some level of autonomy when it comes to dealing with specific challenges that might be particular to certain areas. The organizational structure determines the efficiency in terms of communication and response time to problems.