Company Structure and Leadership

The leadership style and the organization structure that a company selects determine whether the firm achieves its objectives. This means that it is essential for companies to select leaders and organization structures that may help them to achieve their objectives. Since Elegant Furniture Designs is a startup, the company will utilize the functional organization structure, which is simple to understand and use. The firm will also promote team work and democratic leadership in addition to using management by objective to enable it to achieve its mission and objectives.

Company Business Structure

The organization, which will manufacture rocking chairs, will have a functional organization structure as indicated earlier. This is a structure in which an organization is designed around major functions (Gasper, 2016). As indicated earlier, the furniture will consist of only four departments because it is a startup; these divisions include finance, operations, sales and marketing and research and development. All these departments will be under the office of the top manager who will be in charge of organizing and arranging all functions in the company.

Management by Objectives Model

According to Coens and Jenkins (2002), management by objective is a theory that was developed by Peter Drucker, and it aims at matching the objectives of workers with those of the organization. Using this theory, the management sets challenging objectives for workers and they ensure that these goals are attainable. When employees achieve their objectives, they feel motivated to work harder and they become committed because the organization recognizes their achievements. The main objective of the furniture is to be the leader of producing outdoor furniture industry and being the best partner that a prospective company would have in the furniture production industry.

According to Management by Objective (MBO), the organization is required to set goals for all its workers so that at the end of the financial year, the achievements of employees will have enabled the company to attain its main goal (Coens & Jenkins, 2002). The organization will utilize the MBO model by creating specific goals for each department. The heads of the divisions will then be responsible for ensuring that the workers in their departments achieve the unit’s goals. The goals of each department are indicated in the table below.

Department Goals
Operations To produce high quality outdoor chairs just in time. The department will aim at eliminating waste and delays in production.
Sales and Marketing This division will aim at capturing the largest market share in the industry in terms of sales made to consumers. This division will also aim at serving consumers efficiently and in a timely manner.
Finance This department will aim at minimizing the cost that the organization incurs in running day to day business activities. This department will also aim at increasing profitability in the company.
Research and development This department will aim at finding out new designs of chairs and efficient methods of producing them to ensure that the organization’s products are in line with consumer needs.


Leadership in the Company

The organization will utilize the democratic leadership style. This is whereby the top manager and the heads of department lead employees by giving them a chance to participate in making decisions (Gasper, 2016). The leaders are humble and they use their power to influence positive action without intimidating employees. This will be required of every head of department who will be hired by the furniture company. The leaders must be able to work with workers demonstrating how to do things instead of just giving orders. The company will also utilize charismatic leadership by selecting heads of departments who may be able to influence workers to work towards attaining the goals of the company.

Team Concept in the Company

The organization will conduct team work at two levels. First, the departments must be able to work as a team to enable the organization to achieve its mission and objectives. Secondly, employees within each department must be able to work as a group to enable their division to achieve its objectives. The company will conduct training to prepare workers to be able to work as a team; this will promote cooperation and coordination in the organization. The top manager will promote unity by conducting meetings for the whole organization. During these meetings, workers from all departments shall meet and be briefed on the goals of the company. The employees will then discuss issues concerning each department to ensure that everyone understands their role and how they should help one another.

Elegant furniture will utilize the functional organization structure that requires activities to be grouped based on major functions in the company. The functions will include sales and marketing, research and development, finance and operations. The firm will also utilize management by objective theory that was developed by Drucker. The company will develop goals for each department in a way that ensures that each division’s goals aim at achieving the overall objectives of the company. The leaders in the company will use democratic style to lead; the leaders will include workers in making decisions and they will promote team at the organization and departmental levels. This will help Elegant Furniture Designs to achieve its mission and objectives.



Coens, T., & Jenkins, M. (2002). Abolishing performance appraisals: Why they backfire and what to do instead. San Francisco: Berrett-Koehler Publishers.

Gaspar, J. E. (2016). Introduction to business. Ohio: Academic Media Solutions.