Organizational Structure of a Venture HealthPoint

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The most suitable organizational structure for the proposed venture is Divisional organizational structure. Most of the large companies are shifting from traditional functional structures to product divisional structure such as IBM has reorganized its organizational structure and established a structure by-product in which each product division has its own marketing, finance, and operations department (Chalkface Website). However, the most suitable organizational structure for a restaurant business is a functional structure.
There is a logical relationship between the departmentalization, division of work, hierarchy and coordination and managers are responsible to make decisions and manage the work based on these four building blocks of an organization (Stoner, Freeman, amp. Gilbert). In the proposed organization all of these building blocks will be clearly defined to improve the efficiency and transparency of the company.
Division of Labor: Division of labor or job specialization is important to improve the productivity of the tasks. Each person responsible for a specific task will be recruited based on his experience and specialization in the particular field for example, in the operations department the cooks will be expert in cooking only and the frontline customer service staff will be experienced in their job area.
Departmentalization: The jobs will be assigned based on the departments of the organization. There will be five departments including food and beverage department, marketing, customer service, accounting, and human resource departments. In each department there will be only one manager, therefore, the span of the department will be according to the feasibility for the departmental manager. In future, if the company expands and span of department increases then more positions like an assistant, officer can be introduced, however, at this stage a small team of people headed by the departmental manager.