Introduction
Various organizations have different ways of assigning, controlling, and coordinating responsibilities, roles, and power. Besides, the way the information flows from one level of management to the other in these organizations is different. Edwards, Try, Ketchen, and Short (2014) assert that establishing a structure, which effectively coordinates the activities of the organization raises such organization’s possibility of success. Ideally, this explains why numerous contemporary organizations are now abandoning the traditional organizational structures, namely, functional structure, matrix structure, simple structure, and multidivisional structure for a network of teams or boss-free management system. In fact, Greenfield (2016) maintains that the traditional office structure is disintegrating as most of the organizations are abandoning the top-down hierarchies. As a matter of fact, the businesses are now moving to organizational structure, which is allowing the workforces make participate in decision-making as well as evade the rigidity of traditional organizational structures. Greenfield (2016) calls this management structure Holacracy.
According to Edwards et al. (2014), once a structure is established, it supports certain strategic moves and constrains others. In essence, this is true because the new organizational structure that the contemporary organizations such as Medium and Zappos have adopted, that is, Holacracy, is complicating the work environment. Fox (2016), claims that it has been a difficult stretch for this boss-free management system. In fact, he blames the application of Holacracy for Zappos’s fall off the best corporations to work for list. Holacracy has improved accountability, efficiency, agility, and innovation in the companies that have adopted it. Nonetheless, this management system has been heavily criticized.
There are different factors that the entrepreneurs ought to consider when starting a business. They are required first to decide on the form of business to start. The main forms of business include partnership, sole proprietorship, corporation, and Limited Liability Company Edwards et al. (2014) assert that each of the three forms of business encompasses a different approach to dealing with losses and profits. There are different issues, which can have a key impact on the decision of the entrepreneur on the right form of business to start. Among the issues mentioned by Kohler (2015) include the marketing plans and business goals, the entrepreneur’s deductions and earnings, and the availability of an investor or a partner, among others.
References
Edwards, J.; Try, D.; Ketchen, D.; Short, J. (2014). Mastering strategic management (1st Canadian Ed.). BC Campus. Retrieved from http://open.bccampus.ca/find-open-textbooks/?uuid=91cdcf18-273d-44cc-8432-865d09005fda&contributor=&keyword=&subject
Greenfield, R. (2016, March 3). The Office Hierarchy Is Officially Dead. Bloomberg Businessweek. Retrieved from http://www.bloomberg.com/news/articles/2016-03-03/the-office-hierarchy-is-officially-dead
Kohler, M. J. (2015, April 9). How to Choose the Right Business Structure. Entrepreneur. Retrieved from http://www.entrepreneur.com/article/244190
Fox, J. (2016, March 7). Not Everyone Wants to Be the Boss. Bloomberg View. Retrieved from http://www.bloombergview.com/articles/2016-03-07/holacracy-s-failing-not-everyone-wants-to-be-the-boss
