Sustainable development in businesses is now turning to be an important factor and is also a new idea for many business organizations. This essay will outline about my company ‘Zia Inc.’. The main objective of the business is to recycle the plastic bottles. The legal structure of the company will be described along the given outlines, we will be looking at the organizational structure of the company, centralized and decentralized operations. This essay will describe that Zia Inc. is as private limited company, has centralized operations and has a flat hierarchal structure.
Zia Inc. is a private limited company and is run by a sole proprietor, this company is a recycling company, which is recycling the used plastic bottles and thus encounters to be in the secondary sector of manufacturing goods. The company has thirty full-time employees, and is operating in Jebel Ali, Dubai. The company has been operating since two years and has two more organizations operating in U.A.E as well. The company’s main aim is to recycle and reuse the plastic bottles, which are thrown into the dustbins, and are useless. The company has two recycling machines and four skillful workers operate each machine. Two assistant managers supervise these four skillful workers. The company has three managers. One manager keeps control of the finance department, one manager is in charge of the supervision and human resources and the third manager is in charge of the product development.
The company is running in private sector, so the owner has choice of legal structure; this company can be sole trader, partnership, private limited company and public limited company. The company chose the legal structure to be a sole proprietorship, the company chose this legal structure, because home entrepreneur is running the company, and sole proprietor enjoys the advantage of a single owner who controls the firm and the whole profit goes to one person. Furthermore there are no legal and statutory settings up requirement, and no publishing of accounts is necessary following this legal structure. Partnership also has the benefit of not having a legal structure, but also has unlimited liability, this legal structure of sole proprietor was chosen, because the owner wanted the company to be controlled by one person, so that he has all control over his company, and this type of company is easy to set up and run, not much paper work required, and if things don’t work out the business is easy and inexpensive to terminate and shut down.
Every business is built up of more than one person and thus it needs an organizational structure; an organization chart exhibits the strategy in which the chain of commands works within the corporation. The structure of the organization can be flat or tall, the structure outlines the span of control of managers. The structure is chosen according to the workforce, the setting it operates in. In a flat structure managers must be effective delegates, more delegation means more accountability and more stress. On the other hand tall structure has less delegation and less stress and in the tall structure communication is hard, important information can be lost through layers, and with flat structure vertical Communication is more effective. Normally in tall hierarchy decisions takes long time to reach its required destination, because it has to pass through the whole layer.
Flat structure was chosen for Zia Inc., this is because in the company posses few and skillful staff which do not require a lot of supervision. On this basis flat structure was decided in which five staff workers were under supervision of assistant managers, and the assistant managers will be accountable to the human resource manager. The five machine staff workers are also answerable to assistant manager for the machines and products made, and the assistant managers will have to keep the product manager informed about the machines and the product. Neither the assistant managers nor any of the workers report to the finance manager. The finance manager is only answerable to the directing manager who gives an account of sales and purchases with profit and losses of the company. Finally this type of structure is less expensive because there are less layers of management.
The Span of control for Zia Inc. is wide span of control. As compared to narrow span of control there are less layers of management to pass the message through so the message reaches the employees faster, and it cost less than narrow span of control, because it doesn’t have to employ more managers. But in this case there will be less chance of promotion.
In terms of operations, The Zia Inc. choose to made all decisions Centrally (centralization), or else they had a choice to allow local managers to make decisions (decentralization). The benefits of centralization are that controls remain at the top to guarantee greater accountability, consistency, and uniformity, And on the other hand if decisions are decentralized, uniformity cannot be achieved, inconsistency, and relies on quality of managers as decision makers. Finally it is easier to implement common policies and practices for the business as a whole.
In brief, Zia Inc. is a small organization and operates in the private sector that is involved in a sustainable development mission of recycling used plastic bottles, the legal structure of the company is sole proprietorship and has flat organizational structure with a wide span of control. And finally it has centralized operations, which suits best to Zia Inc.