An organization may be structured in different ways, according to its main objectives. Company structure determines how the business will operate and perform. Organizational structure can allow for the allocation of responsibilities for the company's functions in management and production. Operational standards and routines may be developed based upon the foundation that organizational structure provides. Designing an organizational structure also helps to determine which staff will participate in decision making, which can be helpful in shaping the actions of the company or business. The type of organizational structure that a company may use is determined by the type of business and the environment that it is in. Task allocation, supervision and coordination and goal achievement are all aspects to consider when designing an organization structure for a company. While some organizations may use hierarchical structures, smaller businesses may opt to use a more informal system. For example, a small company may only have an owner who also functions as the operations manager. As the business grows, managers may be added to supervise staff in specific areas of the company. To determine staffing needs, companies may use job functions to identify the types of skills necessary for each position. Time estimates and materials required for each job should be defined, along with the level of skill required. For example, if products sold are acquired from another company, a manager or other individual would be responsible to obtain those products. If, however, the products are produced by the company, it would be necessary to employ production people who know how to make the products being sold. The experience level and caliber of the staff required vary according to the company's exact production or service needs.
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