Do You Have the Right Organizational Structure?

Source: Accounting Today

August Aquila, director of practice management consulting for The Growth Partnership, (aaquila@thegrowthpartnership,com) explains three different forms of governance and compares them to governance in societies. 

• Dictatorships—entrepreneurs rule by tyranny
• Democracies—decisions made by the masses through majority rule
• Republics—elected executives make decisions

Dictators populate the firm with people who allow themselves to be controlled. Among other problems, this system frustrates proper succession.

In a democracy there is no protection for the interests of the minority.

Republics avoid the problems of the other two. Large firms are generally governed like republics. Small firms should do the same.

From Accounting Today, November 7, 2005 For the complete article, click on the following link: http://www.webcpa.com/article.cfm?articleid=16155&;pg=acctoday.