The legal “framework” for the smooth operation of the system includes:

• Organizational chart: Shows positions, reporting relationships, and official communication channels.

• Job description (JD): Clearly defines the duties, authority, and responsibilities of each individual/position.

• Regulations & Procedures: Regulations regarding recruitment, contract management, interdepartmental coordination, and document processing procedures.

Common organizational models

Depending on the size and objectives, businesses will choose one of the following models:

• Hierarchical model: Based on a top-down hierarchy.

• Functional model: Groups of employees with similar skills into the same department.

• Matrix model: Employees report to multiple managers (functional managers and project managers).

• Product/geographic model: Each unit operates almost as an independent business. Establishing a clear system helps businesses streamline processes, reduce overlapping tasks, and improve their responsiveness to market demands.