The most imperative strategic requirement for EcoTripp’s organizational structure, over time, was paying close attention to internal organizational changes. When deciding on an appropriate organizational structure, businesses must consider both internal organization changes and external market changes, alongside any re-organization in the future. The choice to use a functional structure was critical in overseeing an increase in the overall well-being of EcoTripp.
The significance of functional structure was to provide exceptional services and products to consumers. With the organization growing from five to fifty employees, tendencies existed to be more efficient in performing their tasks.
Therefore, tasks were divided to match employees’ knowledge and skillsets, leading to specialization. A functional structure in EcoTripp’s strategy resulted in a more centralized decision-making structure where the decision-making process was rendered to the management.
With EcoTripp’s primary start-up culture proving successful and enabling the organization to reach the next growth phase, it was paramount the organization had to develop functional departments. The creation of sales, finance, HR, marketing, products, and operations departments was significant due to their necessity to help with the organization’s operational needs and was also necessary for establishing a hierarchy within the firm.
Through interactions and specialization, the organization’s management would share the firm’s visions and objectives with the employees and guide them in executing their respective duties. Moreover, with the number of employees, organizing the business geographically would be impractical, and thus, the company chose to organize its operations horizontally.