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This article perfectly describes the importance of diversity and inclusion in the work place

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Management skills

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Management skills | 10 Management skills every manager should have.

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Fayol's principles of management, things to consider when managing employees.

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What Are Fayol's 14 Principles of Management?

It was the reality of Fayol's day-to-day managing, seeing what worked and what didn't, that informed his 14 Principles of Management. By focusing on administrative over technical skills, the Principles are some of the earliest examples of treating management as a profession. They are:

1. Division of Work. Assign each employee a task that they can become proficient at. Productivity increases as employees become more skilled, assured and efficient. Today, experts still warn against multi-tasking.

2. Authority. Managers must possess the authority to give orders, and recognize that with authority comes responsibility. As well as rank, Fayol argues that a manager's intelligence, experience and values should command respect.

3. Discipline. Everyone should follow the rules. To help, you can make agreements between the organization and employees clear for all to see. [2]

4. Unity of Command. Fayol wrote that "an employee should receive orders from one supervisor only." Otherwise, authority, discipline, order, and stability are threatened.

5. Unity of Direction. Teams with the same objective should be working under the direction of one manager, using one plan. That, Fayol wrote, "is the condition essential to unity of action, coordination of strength and focusing of effort."

6. Collective Interest Over Individual Interest. Individuals should pursue team interests over personal ones - including managers.

7. Remuneration. Employee satisfaction depends on fair remuneration for everyone - financial and non-financial. Fayol said pay should be fair and reward "well-directed effort."

8. Centralization. Balancing centralized decision making (from the top) with letting employees make decisions. Or as Fayol wrote, "A place for everyone and everyone in his place."

9. Scalar Chain. Employees should know where they stand in the organization's hierarchy and who to speak to within a chain of command. Fayol suggested the now-familiar organization chart as a way for employees to see this structure clearly. [3]

10. Order. Fayol wrote that, "The right man in the right place" forms an effective social order. He applied the same maxim to materials: right one, right place. Academics note that this principle pre-empted the Just in Time (JIT) strategy for efficient production. [4]

11. Equity. Managers should be fair to all employees through a "combination of kindliness and justice." Only then will the team "carry out its duties with... devotion and loyalty."

12. Stability of Tenure of Personnel. Organizations should minimize staff turnover and role changes to maximize efficiency. If people are secure and good at their jobs, they are happier and more productive.

13. Initiative. Employees should be encouraged to develop and carry out plans for improvement. As Fayol wrote, "At all levels of the organizational ladder, zeal and energy on the part of employees are augmented by initiative."

14. Esprit de Corps. Organizations should strive to promote team spirit, unity, and morale.

What are Fayol's Five Functions of Management?

While Fayol's 14 Principles look at the detail of day-to-day management, his Five Functions of Management provide the big picture of how managers should spend their time. They are:

1. Planning: the need "to assess the future and make provision for it." That includes a flexible action plan that considers a firm's resources, work in progress, and future market trends.

2. Organizing: laying out lines of authority and responsibility for employees. This covers recruitment and training, coordinating activities, and making employees' duties clear.

3. Commanding: getting the most from people. So, managers must know their employees' skills, delegate to tap into these skill sets, and set a good example.

4. Coordinating: in a well-coordinated organization, departments know their responsibilities, the needs of other teams, and their obligations to them.

5. Controlling: continually checking that rules, plans and processes are working as well as they should be.

Is Fayolism Still Relevant Today?

You only have to look at the language he used to see that Fayol was writing over 100 years ago. For example, he refers to employees as "men."

But, as Daniel Wren writes, "Without the contributions of these pioneers, such as Fayol, we would probably be teaching industrial engineering, sociology, economics, or perhaps ergonomics to those who aspire to manage. To be doing so would push us back to the 19th century when technical know-how reigned supreme as a path to managerial responsibility." [5]

And if you look closer, you'll discover that many of Fayol's points are fresh and relevant. Such as:

His Principles advocate teamwork and working together for the mutual benefit of the business.

The Five Functions reveal the need for organizations to plan and be agile in the face of changing market conditions.

Fayol was one of the first people to recognize that management is a continuous process.

Before human resources management, Fayol wrote about motivating people by inspiring initiative, commanding respect through values, and ensuring that people have the time and training they need to be happy and productive at work.

The manager who is respected for their values leads by example, makes time to get to know their employees, and gives them the training they need, sounds a lot like a modern manager. Some of these ideas may seem a bit obvious, but at the time they were groundbreaking. And the fact that they've stuck shows just how well Fayol's Principles work.

Criticism of Fayol's Principles of Management

That's not to say that everyone is a fan of Fayol's Administrative Theory. Some detractors claim that:

It's unscientific. Fayol's critics question whether you can ground a theory in the observations of one person. But Fayol stressed that he was laying a foundation for others to build on.

This is just what Luther Gulick and Lyndall Urwick did in 1937 when they used Fayol's ideas to form their POSDCORB model for working efficiently. And research shows that more modern critics of Fayol - such as Mintzberg, Kotter and Hales - in fact use many of his ideas.

It's too prescriptive. If some of Fayol's Principles look dated, there's a reason for that. Many critics argue that one set of Principles can't govern all managers. In fact, Fayol wrote that his list was "incomplete," and that the Principles were flexible and adaptable.

Today, academics have shown how Fayol's work can be updated to complement modern management theorists, such as Porter. [2]

It's cold and inhuman. Critics of historical management theories point to an emphasis on efficiency over the social and psychological needs of workers. But managing with kindness, instilling a sense of initiative, and building morale reveal a level of consideration for workers that was enlightened at the time.

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Henri Fayol's Principles of Management - Understanding Historical Administrative Theory

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Henri Fayol's pioneering 14 Principles of Management set out the idea that managers need to excel in administrative theory over technical skills.

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What is CSR and why is it important?

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What is Corporate Social Responsibility (CSR)? | IBM

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CSR is the idea that businesses should operate according to principles and policies that make a positive impact on society and the environment.

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An in depth look at globalizing a company

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As technology and transportation have advanced, business has become increasingly global. In addition to new challenges and international tensions, purposeful expansion has brought new jobs, customer audiences, and economic opportunity.

What Is Globalization?

Globalization is the increase in the flow of goods, services, capital, people, and ideas across international boundaries, according to the online course Global Business.

"We live in an age of globalization," says Harvard Business School Professor Forest Reinhardt, who teaches Global Business. "That is, national economies are ever more tightly connected with one another than ever before."

Whether you're looking to learn more about your international company or thinking of expanding your business into other countries, you need a strong foundation in the basics of globalization in business. Here's a primer on what it means to be an international business, factors to consider when approaching the global business landscape, and how to build your knowledge.

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What Does It Mean to Be an International Business?

An international business is any company that operates and produces or sells goods between two or more countries. There are three ways a business can be considered international:

1. It produces goods domestically and sells domestically and internationally.

2. It produces goods in a different country but sells domestically.

3. It produces goods in a different country and sells domestically and internationally.

If your business falls into one of these categories, there are two types of international business models to consider: transnational and multinational.

Transnational corporations have offices in multiple countries, each responsible for a different facet of the organization. For instance, marketing may be based in London, research and development in Bogota, and software development in New York.

An example of a successful transnational corporation is Nestlé, which splits business operations for each of its brands by region. There are over 100 Nestlé offices worldwide with distinct responsibilities. For instance, the Nestlé Research Center is located in Switzerland, which acts as the hub that oversees each brand-specific research and development center, of which there are 23. All Nestlé offices operate under the company's headquarters in Switzerland.

Multinational corporations also have offices in multiple countries, but unlike transnational corporations, each is a microcosm of the larger organization. This means each office has, for example, its own leadership, marketing, sales, research and development, technology, and human resources teams. An example of a multinational corporation is PepsiCo, which has 32 offices across 24 countries.

If you're considering which international business model to implement for your growing company, know that each has its pros and cons. Transnational corporations typically have the benefit of everyone on a specific team being located in the same office, although this may change with the rise of remote work. Being in the same office can decrease miscommunication and reinforce the idea that each office is an integral part of the larger company. Multinational companies may not beget this same mindset, but they benefit from having someone from every team present in each office. This can enable them to collaborate and tailor efforts to the audience in their specific location without juggling time differences and language barriers to collaborate with other teams.

There's no one-size-fits-all approach to globalization; only you can decide what works best for your business.

Why Study Global Business? 5 Benefits to Consider

Facets of Global Business to Consider

Globalization doesn't just refer to the location of a firm's offices and customers-it also encompasses the nuances and economic factors of conducting business internationally and existing in a global economy. Even if your company operates domestically, globalization can influence the way you do business. Here are a few factors to consider when thinking about how global business impacts your organization:

Politics and laws: International politics can color relationships between nations and regulate what products are allowed in and out of their borders. Keeping up with current events can help you prepare for the business impacts of shifts in policy and foreign affairs.

The environment: There's no global issue more pressing than climate change. Unfortunately,globalization can contribute significantly to its negative effects due to increased transportation of materials and products, business travel, and the number of factories. If you're engaging in global business, keep sustainability in mind to avoid contributing to climate change.

Macroeconomics: Principles of macroeconomics can allow you to compare countries' financial health on a one-to-one basis and draw connections between trends. Some metrics to know include:

Human rights: Because laws dictating human rights-including labor laws-differ from country to country, operating as a global business requires research and critical thought to ensure you're not exploiting people for labor, even if it's technically legal. Ethics are required for making decisions that may cost your business money at the expense of protecting human rights.

Cultural differences and language barriers: Operating a global business requires knowing and respecting other cultures. Without understanding the areas you do business in, you could unintentionally offend someone and harm your working relationships. In the case of language barriers, this may require you to hire translators and multilingual employees to bridge the gap.

Learning More About Globalization

If you're interested in furthering your knowledge of the global business landscape, one easy way to do so is by reading international news. Try incorporating foreign cities' local news into your daily intake to gain perspective on the state of their economies.

Additionally, consider taking an online course like Global Business. You'll learn how to assess macroeconomic situations; gauge the short- and long-term effects of inflation, trade, and investment; and use insightful frameworks to plan the best global strategy for your organization.
Are you interested in exploring the nuances of the international business world? Learn more about our four-week online course Global Business Business in Society If you aren't sure which course is the right fit, download our free course flowchart to determine which best aligns with your goals.

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What Is Globalization in Business? | HBS Online

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Globalization is the increase in the flow of goods, services, capital, people, and ideas across international boundaries. Learn more about global business.

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Good spot for organizational templates

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Building better employees

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Managers are increasingly opting for a leadership style that empowers employees. Rather than just delegating tasks, they encourage their teams to be more independent in the workplace.

Some benefits of this leadership style include increased growth, creativity, trust and overall satisfaction amongst employees. But how exactly can managers reap these benefits and empower their employees to take charge of their professional realm?

Below, the members of Forbes Business Council share 15 ways to create a culture of autonomy that will benefit teams and leadership alike.

Members of Forbes Business Council share how managers can build a culture that prioritizes autonomy.
Photos courtesy of the individual members.

1. Mentor Employees Through Their Mistakes
With this type of leadership style, managers have to expect that mistakes will be made. We have to empower employees to own their mistakes and guide them to design a resolution strategy. Mentoring our employees through their mistakes will give them space to grow, and will help to create a culture of growth and resilience. - Ali Novitsky, Life Coaching for Women Physicians
2. Take A Tasks- And Objective-Based Approach
A tasks- and objective-based approach usually is more effective in creating an empowering and independent work environment. Managers can delineate achievable tasks to their team members and evaluate individual performance based on the key performance indicators outlined at the beginning of the tasks. Rewarding successful team members can help create confidence in your team. - Syed Gilani, Safr Technologies Inc

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
3. Listen To Your Employees
Governance pertains to the way businesses do business. The same altruistic wind that is driving new consumer behavior and corporate decision making is driving employees to demand change from the inside. Business leaders need to listen and take action to empower their employees. Some have gone so far as to have employee representation on the board itself. - Richard Steel, Parsec Ventures
4. Build Strong Relationships Based On Mutual Trust
Empowering employees means building strong professional relationships based on mutual trust. We have to remember that these days people have a lot of employment choices. They not only want to be successful, they want to be at a place that's fun. You want to make sure people are engaged and a part of the mission. Pick the right people and give them the right opportunities. - Jody Glidden, Introhive
5. Delegate Problems, Not Tasks
I tend to work with pretty senior professionals so I don't delegate tasks, I delegate problems-as in, "Go figure out what's going on and come back with a plan of how you're going to fix it and what you need to do that." Give them autonomy, respect and resources, then stand back. I've been amazed at how energized and creative people can be when you give them ownership. - Norma Watenpaugh, PhoenixCG
6. Understand Their Personal Values
It's important to know what each employee's personal values are and how growth in the company can help each particular employee achieve what they want in life. Integrating the personal desires of employees with the vision of the company is key in creating independence and autonomy. - Nona Djavid, Part Time Million Dollar Business
7. Let Employees Take Charge Of Tasks
Managers should give the team members a dedicated task and let them take charge of it. An example could be at the office meeting, where a member of the team can present an aspect of the agenda. This will allow each team member to take an active role in leading and become a self-starter in other areas. As a manager, you will trust your team to do more things without micromanaging the project. - Anissa Jones, Total Health Chiropractic and Wellness Center
8. Leverage The Situational Leadership Training
Leverage the Situational Leadership training-direct (S1), coach (S2) and support (S3) before delegating (S4) so everyone speaks the same professional development language. New leaders will emerge and step into leadership roles organically, then create their own work and only return for feedback. They then will use this training and do the same with their team members-enjoy the ripple effect. - Fadi George, Kalungi, Inc.
9. Involve Employees In The Decision Process
Give employees decision-making responsibilities over areas they control, as well as the opportunity to make recommendations for larger, enterprise-level decisions. If employees are involved in the decision process, they tend to be more vested in the organization. Of course, it's also important in any size organization to have controls in place to prevent critical errors. - Edward Tuorinsky, DTS
10. Encourage Problem Solving
Empower them by making them better problem solvers. When they come to you with a problem, don't let them state it and leave. Have them come up with their three best solutions. In the beginning, they might find this difficult but as you hold them accountable for the habit, they will become very good at it. This will dramatically increase their confidence and sense of ownership in the company. - Nneka Unachukwu, EntreMD
11. Treat Them Like Business Owners
Treat team members like business owners. Empower them to stretch and grow by fostering a supportive environment that nurtures innovation by rewarding successes but not punishing efforts that turn out off-the-mark. Also, take a broader interest in them beyond just their role in the organization as people and in their careers generally. This develops longer-term loyalty and deeper empowerment. - Dean Fealk, DLA Piper
12. Lighten Up
Be the manager who sends her team "this meeting could have been an email" candles. Lighten up and spread some joy at work. C-suite execs should approve meeting policies that include 30-minute meetings or less, action items only and one per week per team max. Institute the walk and talk option. - Beth Jannery, Titan Strategic Communication
13. Create The Right Conditions
Create all the conditions to help them be extraordinary. This can cover everything from ensuring they have the right skill sets to do the job and having the right equipment to be productive to having access to internal resources (team, financial, etc.) to support them along the way. Also, build a culture that embraces risk-taking and curiosity to fuel people's desire to enjoy greater empowerment. - Andreea Vanacker, SPARKX5
14. Trust Your Employees
The managers who are taking this approach are making wiser decisions for their teams. Allowing autonomy in work settings supports team members in finding the optimum productivity outputs to improve the company's overall health. Trusting that your company hired those to fit in the culture giving them autonomy will enhance their output while improving company culture. Autonomy will be welcomed. - Paul L. Gunn, KUOG Corporation
15. Get Employee Buy-In
Decentralization of leadership is the right leadership in the workplace of today. Make employees feel responsible for what they do. Let them understand and truly appreciate the value of the work they do and how their role impacts the overall business. Get their buy-in and let them feel the value of what they are doing. - Saurabh Goenka, MindMap Digital

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Council Post: 15 Ways To Empower Your Employees

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Implementing policies that allow employees to gain more independence brings more autonomy into the workplace.

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Improving leadership skills

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Goals and challenges throughout a business growing cycle

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From Startup to Success: Business Growth Stages

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Businesses must push through growth stages to reach true and lasting success.

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Multidomestic strategy

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Companies must find ways to differentiate themselves from their competitors. It's a simple fact and a journey that we're all on. One approach that has gained popularity in recent years is adopting a multidomestic strategy. This involves tailoring products and services to meet the specific needs and preferences of each local market in which the company operates. We're going to explore the key components of a multidomestic strategy, the advantages of adopting it, as well as the challenges and limitations it presents. We will also discuss how companies can successfully implement a multidomestic strategy.

Defining multidomestic strategy

A multidomestic strategy is a decentralized approach to international expansion whereby a company operates in multiple countries and caters to each market's unique needs and preferences. This strategy is in contrast to a global strategy, which involves offering a standardized product or service worldwide. Companies that pursue a multidomestic strategy design and market products and services specific to each country or region to maximize localization.

Tech companies employing a multidomestic strategy design and market offerings specific to each country or region to maximize localization. This approach potentially propels a company's global presence, making it competitive in each local market, leaving no room for a one-size-fits-all methodology.

Key components of a multidomestic strategy

Firstly, a company must establish a strong local presence by building relationships with suppliers, distributors, and customers within each market. This requires a deep understanding of the local culture, language, and business practices. For instance, consider Salesforce's local partner ecosystem that helps it stay attuned to local business needs.

Secondly, a company must invest heavily in research and development to understand the cultural, economic, and regulatory differences in each country or region. This requires a significant investment of time and resources, but it is essential for developing products and services that meet the unique needs of each market. Salesforce's extensive R&D is a classic example of a tech firm striving to understand regional variations and remain a step ahead of the competition.

Thirdly, a company must adapt its marketing, brand, and product offerings to cater to local preferences, tastes, and trends. This requires a deep understanding of the local culture and consumer behavior. Google's localized search algorithms catering to regional languages and nuances serves as a perfect example.

How multidomestic strategy differs from global strategy

While a global strategy is focused on offering standardized products or services worldwide, a multidomestic strategy focuses on tailoring products and services to meet the unique needs and preferences of each local market. Global strategies generally prioritize economies of scale and a cost-efficient approach. In contrast, a multidomestic strategy emphasizes local differentiation and innovation.

Another key difference between a multidomestic strategy and a global strategy is the level of centralization. In a global strategy, decision-making is typically centralized at the corporate level, with little input from local managers. In contrast, a multidomestic strategy involves a high degree of decentralization, with local managers given a significant degree of autonomy to make decisions that are best suited to their local market.

Advantages of adopting a multidomestic strategy

Adopting a multidomestic strategy can bring several advantages to companies looking to expand globally.

1. By customizing products and services to meet local needs, a company can establish a stronger market position, build brand awareness, and improve customer loyalty.

2. Companies can overcome cultural and regulatory barriers by understanding local conditions and adapting their business and operational models accordingly.

3. Companies can encourage innovation and adaptability by giving local teams the freedom to experiment and come up with new ideas.

Catering to Local Preferences and Needs

Customizing products and services to meet local preferences and needs can lead to increased customer satisfaction and loyalty. For instance, McDonald's has adapted its menu offerings in India to cater to local tastes by introducing McAloo Tikki Burger, a vegetarian burger, and other vegetarian alternatives. By doing so, McDonald's has successfully penetrated the Indian market, which is predominantly vegetarian.

Companies can also gain a better understanding of the local market and its consumers. This understanding can help companies to tailor their marketing and advertising efforts to better resonate with local consumers, which can lead to increased brand awareness and sales.

Reducing cultural and regulatory barriers

By understanding and adapting to local cultural and regulatory conditions, companies can overcome barriers that could hinder business operations. For example, Starbucks has successfully expanded to China by adopting a localization strategy that includes offering unique menu items and partnering with local companies like Alibaba to embrace mobile ordering and delivery.

Enhancing competitive position in local markets

Customizing products and services to local markets can create a competitive advantage for companies. This differentiation can lead to increased market share and brand awareness, as well as higher profit margins. For example, Nestle offers different chocolate flavors around the world, such as Green Tea KitKat in Japan, to cater to local preferences and distinguish themselves from their competitors.

Encouraging innovation and adaptability

By empowering local teams, companies can encourage innovation and adaptability in response to local market conditions. This approach can lead to better product development, improved customer satisfaction, and a stronger competitive position. For example, Coca-Cola uses a decentralized organizational model to enable local teams to test new marketing campaigns targeted to specific regions.

Challenges and limitations of a multidomestic strategy

While a multidomestic strategy offers several advantages, it is not without its challenges and limitations.

1. It can create increased operational complexity due to the need for local adaptation.

2. A company could face inconsistency in brand image and customer experience across different markets. This inconsistency could lead to brand dilution and reduced customer loyalty.

3. It could require higher costs and resource requirements to manage different operations and supply chains associated with offering local products or services.

Increased operational complexity

Managing different operations, supply chains, and regulatory requirements across different markets can create operational complexity and increase costs. For example, McDonald's faces different food safety regulations in different markets, which could increase the cost of ensuring compliance. Additionally, cultural differences in different markets can create challenges in managing employees and ensuring consistent quality across different locations. These challenges can increase operational complexity and require additional resources to manage.

Potential for inconsistency in brand image

Offering different products and services in different markets can create potential inconsistencies in brand image and customer experience. This inconsistency could lead to a dilution of the brand and reduced customer loyalty. For example, Subway's brand image could be diluted if it offered different sandwiches in different markets. Additionally, differences in marketing strategies and messaging across different markets could create confusion among customers and lead to a lack of clarity about the brand's values and offerings.

Higher costs and resource requirements

Running multiple operations in different markets requires higher costs and resource requirements. For example, Lenovo, a multinational tech company, has established headquarters in different markets, including the US, China, and Singapore, to manage operations and supply chains. In addition to the costs associated with establishing and maintaining multiple headquarters, a multidomestic strategy can require additional resources to manage different supply chains and logistics associated with offering local products or services. These costs can add up quickly and create financial challenges for companies pursuing a multidomestic strategy.

As with any strategy, a multidomestic strategy is all about balance. It can bring considerable advantages to tech companies looking to expand globally. There's challenges and limitations, but they can be overcome through careful planning, execution, and a balance of local autonomy with corporate control. As tech companies navigate their growth paths in an increasingly interconnected world, a multidomestic strategy may well prove the critical difference between localized success and global triumph.

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Explore multidomestic strategy for tech firms-its advantages, challenges, and successful applications in giants like Google, Salesforce, and Amazon.

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A functional organizational structure is a safe way to ensure that employees are focused and decision-making processes are streamlined. Due to a strict focus on efficiency and a clear chain of command, functional structures are especially popular among larger companies.

Every time an organizational structure has benefits, however, it also has downsides. In this article, we'll cover what a functional organizational structure is and what characterizes this type of structure. Finally, we'll explore the pros and cons of the model.

Let's get into it!

What is a functional organizational structure?

A functional structure is defined as a system where employees are grouped in different departments based on expertise, each having a functional head. Unlike a hierarchical chart, employees are organized by function rather than by authority.

These departments are referred to as "silos". This term comes from the metaphor of grain silos that are tall, slim, and isolated to each store different types of grain. Similarly, employees in a functional organizational structure are isolated from other departments.

Which characteristics does a functional structure organization have?

There are three main areas where a functional organizational structure is distinctive in its design. These are:

In a functional organization, every department is specialized in a particular field, such as sales, marketing, engineering, or finance.

Employees within the department report to the department head who reports to the executives.

As employees work in silos, they are entirely focused on their own work and do not work cross-functionally.

Pros and cons of a functional organizational structure

The characteristics of a functional organizational structure can be both good and bad, depending on the needs of the organization. Here are some of the pros and cons of the structure:

Pros

Clear decision-making process

Because each employee isn't individually managed, functional organizational designs allow for more flexibility and autonomy within each department, while still keeping an effective chain of command through the head of each department.

Grouped based on expertise

By strictly working within their field, employees can focus entirely on their own domain of expertise. This can increase efficiency and lead to higher satisfaction since employees don't have to work in fields they aren't interested in.

Easier measurement and development

Because employees are grouped by fields of expertise, it becomes easier to evaluate their performance, as employees can be measured against each other. New skill development also becomes easier since training can be focused on a particular skill set within that field.

Cons

Within a functional org structure, there is a risk of professional as well as personal isolation. As employees are grouped by expertise, cross-functional collaboration is not encouraged. This can lead to social issues if teams do not socialize with others.

Innovation often happens when different perspectives meet to come up with a solution. Functional structures can prevent this creativity from unfolding, as the model discourages employees from cross-functional collaboration.

The chain of command in functional organizational structures goes through the department head further up to the executives. Though the decision-making process in functional structures is clear and well-defined, it is slow when compared to flatter structures.

Who is the functional structure optimal for?

Functional organizational structures are suitable for larger companies that want to keep their employees focused on their specific areas of expertise.

These structures do not prioritize fostering innovation through cross-functional collaboration. Instead, they focus on efficient workflows and a streamlined decision-making process.

Example of a functionally structured organization

A large company that operates with a structure that has functional elements is Unilever, the owner of brands such as Knorr, Dove, and Ben & Jerry's. In late 2022, Unilever announced changes to its organizational structure to make it "simpler, more category-focused".

It moved away from its matrix structure and organized into five departments focused on Beauty & Well-Being, Personal Care, Nutrition, Home Care, and Ice Cream. Each department, or Business Group as Unilever calls it, is responsible for its own operations.

This structure has elements of a divisional organizational structure, but also of a functional structure, since the departments each have a specialized focus and operate in isolation from each other.

Learn more about organizational design

Want to learn more about organizational structures? At The Org, we have the world's largest network of publicly available org charts and a ton of resources that will teach you more about management, organizational design, and how you can make your own org chart.

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Functional Organizational Structure | The Org

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In this article, we'll cover what a functional organizational structure is and what characterizes this type of structure. Finally, we'll explore the pros and cons of the model.

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Who is HR and what is their responsibility?

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7 Human Resource Management Basics Every HR Professional Should Know

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Good Human Resource Management (HRM) is essential for success for businesses of all sizes. Learn about 7 HRM basics you need to know!

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Answering the top 10 interview questions

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Top 10 Interview Questions And Answers | Job Interview Tips For Freshers | Simplilearn

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top 14 Skills for Interview Success (With Examples) - Glassdoor Career Guides

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Top skills to mention in an interview

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Top 14 Skills for Interview Success (With Examples) - Glassdoor Career Guides

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Learn more about skills for interview success, how to answer skills-related interview questions, the top skills to mention in an interview, and examples.

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Building a great resume

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So, let's dive right in!

How to Make a Resume (The Right Way!)

Before you even start working on your resume, you need to decide how you're going to build it.

And no - you shouldn't use a basic text editor. While this IS the most popular method for creating a resume, it's very far from the best.

With a basic text editor resume, you'll need to spend hours playing with the formatting. You make a minor change and BAM! Your entire resume layout gets messed up.

Instead of using a text editor, we recommend choosing a resume builder, such as Novorésumé. Our resume builder is fast, easy, and to put the icing on the cake, a Novorésumé looks much better and can fit more information than your average, cookie-cutter resume...

To get the most out of this guide, you can head over to the resume builder and start building your resume on-the-go as you read this guide.

How to Pick the Right Resume Format?

There are three types of resume formats: reverse chronological, functional or skills-based, and a combination of the two. The choice depends on the type of job you are applying for and your level of experience.

The 3 resume formats are:

1) Reverse chronological resume format - This is the most popular resume format and is ideal for people with plenty of work experience that is relevant to the position they're interested in.

2) Functional/skills-based resume format - If you lack relevant work experience because you are a student/recent graduate, or you are looking to make a career change, the skills-based format is a better choice.

3) Combination resume format - The combination resume is a great choice for job-seekers with a very diverse skill-set. It's useful if you're applying for a role that requires expertise in 3-4 different fields, and you want to show all that in your resume. Say, for example, you're applying for a senior management role, and the requirements are expertise in Management, Sales, and Software Development.

So, which one do you go for?

In 90%+ cases, you'd want to stick to the reverse-chronological resume format. This is the most common one, and most HR managers are used to this. Hence, in this guide, we're going to focus on this specific format.

If you're a recent graduate, or possess a diverse set of skills & work experience, you might want to pick one of the other 2 formats. Check out our guide to resume formats to learn how to write either.

What is the Best Resume Layout?

The first thing a job recruiter notices about any resume is the layout.

Does it look organized or cluttered? Is it too short or too long? Is it boring and easy to ignore, or does it scream out "Read me!"?

Here are some of the best practices when it comes to your resume layout:

One more thing you need to consider in terms of resume layout is whether you're going for a traditional-looking free resume template or something a bit more modern:

If you're pursuing a career in a more traditional industry - legal, banking, finance, etc. - you might want to stick to the first.

If you're applying to a tech company, though, where imagination and innovation are valued, you can go for something more creative.

Resume Content - What to Mention on Your Resume

Now that we've got the basics out of the way, let's dive into the essentials of how to write a resume.

The most popular sections for a resume are:

Contact Information

Professional Resume Summary or Objective

Work Experience (and Achievements)

Education

Skills

Optional Sections - Languages, Publications, Hobbies, etc.

Below, we'll explore each resume section from top to bottom. We'll explain what to write and how to write it so that you stand out and get the job you deserve.

The most critical section in your resume is the "contact information." Even if you get everything else right, you're not going to go far if the HR manager can't get in touch with you because you misspelled your email.

Make sure to double-check, and even triple-check your contact information section and make sure everything is correct and up-to-date.

Must-have Information
‎
Optional Information
‎

All clear? Good! Now, let's examine what a successful example of the contact section looks like:

Resume Summary or Objective

It's not a secret for anyone that first impressions matter, whether they're in your personal life, or your career.

If you leave a bad first impression, chances are, it's there to stay. After all, it's very hard to change someone's opinion of you.

The same applies to your job search - the HR manager spends around 6 seconds scanning each resume. Yep, your carefully-worded, hand-crafted resume only gets 6 seconds of attention. Unless, of course, you manage to leave an amazing first impression.

The way you accomplish this is through either a good resume summary or objective. Both are placed at the top of your resume, right around the contact information section:

So, here's what you need to know about the two:

What's a Resume Summary & When to Use it

A resume summary is a 2-3 sentence summary of your career. You should use a resume summary in basically any situation, unless you're a recent university graduate or switching careers (in that case, you use a resume objective. More on that later!).

In your resume summary, you need to mention:

1. Your job and years of experience. E.g.: Customer support representative with 5+ years of experience in the IT industry.

2. 1 or 2 top achievements (or core responsibilities). E.g.: Specialized in technical support, customer care, and user retention.

3. Desired goal (generally, passion for working at a specific company). E.g.: Looking for new opportunities as a support lead for a SaaS company.

What's a Resume Objective & When to Use it

A resume objective is, in a nutshell, the goal of your resume. It communicates your motivation for getting into a new field. As with a resume summary, a resume objective should be around 2-3 sentences.

As we've mentioned before, a resume objective is the go-to for anyone that either has no work experience or is going through a career change.

Work Experience

The most important part of your resume is your work experience.

This is where you really sell yourself, displaying your past accomplishments and responsibilities.

If you manage to master this section alone, you'll know 80%+ of all there is to know about how to make a resume.

There are a lot of best practices for writing your work experience. Before we dive into all the nits and grits, though, let's start with the basics...

How to List Work Experience in a Resume

The standard format for your work experience is as follows:

Job Title/Position - Your job title goes on top of each work experience entry. When the HR manager scans your resume, you want them to know, at a glance, that you have relevant work experience for the job.

Company Name / Location / Description - Then, you mention the name of the relevant employer, as well as the location of the office you work/have worked in. In some cases, you may also want to briefly describe the company, if the organization is not a famous household name.

Achievements and Responsibilities - This is the core of each work experience entry. Depending on your field, you want to list either your achievements or responsibilities. We'll get more into the how's and why's of this in a bit.

Dates Employed - The timeframe of your employment in each company. Not sure about the exact dates you worked somewhere? Don't worry - you don't have to be accurate by the day, as long as it's close. The standard format expected by recruiters and employers is mm/yyyy (this is especially important when your job application will be parsed by an Applicant Tracking System).

Here's a real-life example:

As you can see, the work experience listings should be mentioned in reverse-chronological order - starting with the most recent job, going all the way back into the past.

Now that you know how to list your experience, we're going to talk about how to write about your experience in such a way that you stand out from the competition.
Are you a student with no work experience? We've got you covered. Check out our guide to writing an internship resume here.

List Achievements When Possible

One of the most common resume mistakes is listing only responsibilities in your work experience section.

Here's the thing - in most cases, the hiring manager knows what, exactly, your responsibilities were. Let's say you're a sales manager, for example. Your responsibilities would be:

Reach out to potential clients over the phone or email.

Maintain relationships with existing company clients and upsell relevant products.

Tracking and reporting on leads in CRM.

Coincidently, this is exactly the same list of responsibilities for every sales manager. 90% of all other resumes probably mention just about the same thing.

So, to stand out, you want to focus on mentioning achievements in your resume instead. Or in simple terms, how exactly you helped the company grow, reach quarterly quotas, and so on.

Keep in mind, though, that in some fields, there aren't that many achievements you can mention. Let's say you work in a warehouse. Your day-to-day responsibilities probably involve:

Loading, unloading and setting up equipment on a daily basis.

Package finished product and get it ready for shipping.

Assist in opening and closing the warehouse.

In such fields, it's pretty hard to distinguish yourself, so it's totally OK to stick to responsibilities instead.

Tailor Your Resume to the Job

Did you know that over 70% of resumes submitted to job boards are never read?

Yep, Applicant Tracking Systems (ATS) keep your resume from being read by HR. An ATS (for resume) is software that helps companies filter through hundreds of resumes they receive per day.

So you're probably wondering, "What gives?! What's the point of perfecting your resume, if a robot can just say "No" and single-handedly destroy all the effort you put in?"

Well, don't worry - getting past the Application Tracking System is not hard, as long as you know how to do it.

The key here is to tailor your resume to each job you apply. To do this, you need to mention the right keywords from the job ad in your resume.

So, let's cover a simple example on how to do this. Let's say that after reading the following job ad for the position of a digital marketer, you discover that the most critical requirements for the job are:

5+ years of experience in online marketing

Social media marketing experience, with good knowledge of Facebook advertising

B.A. in Marketing or Business Administration

Experience managing 20,000 USD monthly advertising budget on Facebook

Now, to tailor your resume to these requirements, simply mention each in your resume, considering you have the relevant achievements and qualifications!

How much work experience do you include in your resume?

If you've got over a decade's worth of work experience, you're probably confused about how much of it you mention in your resume. After all, If you had to list everything you've ever done, you'd end up writing a mini-novella.

Or, on the other hand, if you're a newcomer to the job market, you probably don't have ANY experience and are wondering what could you even mention.

Here's how much information you'd mention in your resume depending on your level of experience:

Job hunters with no experience - If you don't have any experience, it might be a bit hard to fill in your work experience section. You can either keep it empty and focus on all the other sections, or fill it up with work experience in student organizations, non-profits, etc.

Entry-level candidates - List all the work you've done up to now.

Mid-level professionals - ONLY mention work experience relevant to the position you're applying for.

Senior professionals - List up to 15 years of relevant work experience MAX. If your recent experience is as a CEO, no one cares about how you started your career as a cashier in your teenage years.

How to List Education on Your Resume

The next section we're going to cover is your Education. Let's start with the basics - how to format the education section & what to mention there. Then, we'll move on to tips & tricks that'll help you stand out...

Program Name. E.g.: "B.A. in Business Administration"

University Name. E.g.: "New York State University"

Years Attended. E.g.: "08/2008 - 06/2012"

(Optional) GPA. E.g.: "3.9 GPA"

(Optional) Honors. E.g.: Cum Laude, Magna Cum Laude, Summa Cum Laude.

(Optional) Academic achievements. Any interesting papers you've written, courses you've excelled in, etc.

(Optional) Minor. "Minor in Psychology"

Here's an example:

Emphasize Your Know-How with the Skills Section

Another must-have section in your resume is the "Skills" section. Here, you want to mention all your know-how that makes you the perfect candidate for the job.

There are 2 types of skills you can include when writing your resume:

Hard Skills (Measurable abilities). This can be anything from coding in Python to knowing how to cook Thai cuisine.

Soft Skills (Personal skills). These are a mix of social skills, communication skills, personal traits, career attributes, and so on. Leadership, critical thinking, management, and communication, just to name a few.

A good resume should cover both.

How to List Skills in Your Resume

When mentioning skills in your resume, there are 3 essential steps to follow:

Step #1 - List Hard Skills with Experience Levels. For each hard skill you list, you want to mention your proficiency level:

As a rule of thumb, you can divide them by:

Beginner - You have some experience with the skill, whether it's from some entry-level practice or classroom education.

Intermediate - You've used the skill in a work environment with a good level of understanding.

Advanced - You're the go-to person for the skill in your office. You can coach other employees, and understand the skill on a high level.

Expert - You've applied this skill in more than a handful of different projects & organizations. You're the go-to person for advice about the skill, not just in your office, but even amongst some of the best professionals in your field.

Make sure to NEVER lie about your skill levels. Otherwise, it's going to be pretty awkward both for you and your employer.

Imagine your first task at work as an Illustrator - to create a graphic vector to go nicely with an article. If you end up delivering a hastily drawn stick figure colored with a paint bucket tool in Microsoft Paint, you'll be out of the job before your probation period ends.

Step #2 - Tailor Your Skills to the Job. You might have some super rare, awesome skills, but they're not always going to be useful. For example, it's awesome that you know accounting, but would you really need it at your new job as a line cook? Exactly!

Take a look at the job ad and list 2-3 essential skills required for the job.

Qualifications
Systems:

As you can see, the must-have skills here are Photoshop, InDesign, Illustrator, Keynote and Pages. A good-to-have is WordPress. You can also mention Word, Excel, Powerpoint, and Outlook, but it's pretty much assumed that you know how to use them, as they're required for most office jobs.

If you're qualified, make sure to mention all relevant skills with respective proficiency levels in your "Skills" section.

Step #3 - Include Some Universal Skills - "Universal Skills" are the type of skills useful for almost any job out there. These are both soft skills (leadership, teamwork, critical thinking, etc.) and hard skills (Excel, Powerpoint, Photoshop, writing, etc.). Whatever job you're applying to, chances are, these skills will in one way or another come in handy, so feel free to include them, even if they're not specifically required for the position.

Not sure which skills to mention for your field? It might be one of these 100+ essential skills to put on any resume!

Other Important Resume Sections

The sections we've covered so far are must-haves for any resume. They're the bread-and-butter for any job application, and if you get them right, you'll land any job you apply to.

The following sections, though, can really give you a boost here and there.
Languages
Are you bi-lingual? Or better, multi-lingual? You should ALWAYS mention that on your resume!

Even if the position doesn't require you to know the specific language, it can still come in handy at some point. At the end of the day, it's always better to know more languages than less.

To list languages in your resume, simply write them down and assign them the appropriate level:

Native

Fluent

Proficient (Enough knowledge to pass by in a professional environment)

Intermediate

Basic

As a given, you should never lie about your language skills. You never know, your interviewer might turn out to be fluent in the language, or even be a native speaker!

Hobbies & Interests

Want to add some spice to your resume? The hobbies and interests section, while not a game-changer, can help show who YOU are as an individual. Who knows, maybe you and your interviewee have some hobbies in common?

If you end up with some extra space in your resume, don't hesitate to show off your personality with a hobbies/interests section.

Volunteering Experience

If you're the type of person to use your free time helping others, while expecting nothing in return, chances are that you're the type of employee who's in it for more than just the money. It leaves the impression that you're a devoted, loyal employee.

Several studies show that you can boost your chances of getting hired simply by listing your volunteering experience. This holds especially true if you're a student with next to no work experience.

Certifications & Awards

Do you have any awards that make you stand out in your field? How about certifications from industry experts?

Whichever the case is, as long as it's relevant for the position you're applying for, feel free to add it to your resume.

Let's say, for example, you're a Microsoft Cloud Engineer. Assuming you specialize in Microsoft Technologies, you'd definitely want to include all essential certifications, such as the Azure Solutions Architect Expert one.

Publications

Are you a freelance writer? Maybe a distinguished academic?

If you have any published works (online, or in an academic journal), you might want to include them in your resume. Make sure to include a URL, so the HR knows where to check your work!

Projects

Working on side projects can really show off your passion for your field. Whether they're university class projects or part-time entrepreneurial endeavors, they're both equally relevant.

Let's say, for example, you worked on a mock software product as part of a competition in university. You went through every step of product creation, from ideation to creating a marketing strategy.

You can mention the project in your resume and stand a better chance at landing that business internship!

Or on the other hand, maybe you manage an Etsy store, selling hand-made arts & crafts to customers online. Mention all of it!

Hiring managers love employees who do cool work in their free time.

Perfecting Your Resume - FREE Checklist

Already done with your resume? Interested in seeing how it holds up? Go through our checklist for perfecting your resume and see where you stand!

If you ☑'d all the points? Congrats! You've mastered all there is to know about how to write a resume, and you're good-to-go to move on with your job search! If you missed some points, though, just go through your resume one more time and perfect it as much as possible.
Wondering how to write a CV instead of a resume? Check out our step-by-step guide on how to write a CV (31+ examples included)!

4+ Effective Resume Examples

Knowing how to write a resume is one thing, actually creating a resume that stands out is something else entirely. Without inspiration, even top career experts might stumble on a roadblock or two.

Check out the following effective resume examples to get a better sense of what a good resume looks like...

Want to see more examples? Check out our compilation of 80+ resume examples for different fields.

Next Steps After Your Resume

Now that we've covered everything you need to know about how to create a resume, let's talk cover letters & interviews.

After all, your resume is only the first step in your job search. To really land that job you deserve, you also need to craft a killer cover letter, and ace that upcoming interview.

How to Write a Convincing Cover Letter

Every job application consists of 2 parts - the resume and the cover letter. Now that we've covered the first, let's briefly explain the latter.

Most job-seekers flinch when they hear that they have to write a cover letter. What do you even mention in a cover letter, anyway? If you were good at writing cover letters, you'd be applying for a writing job!

In reality, though, writing a cover letter is pretty simple, if you know its purpose.

You should think of a cover letter as a direct message to the hiring manager. You get to briefly explain why you're such an awesome fit for the position. When we put it that way, it doesn't sound as hard, does it?
Here's a format you could follow:

Introduce yourself (and leave an impression) - As a start, give a brief run-down on your work experience and mention why you're interested in working for the company you're applying for. You can also mention 1-2 of your top professional achievements to leave a good first impression.

Explain how you'd excel at the job - Identify the top 3 requirements in the job ad. Then, dedicate one paragraph to explaining how you fulfil each requirement. So for example, if the requirement is "Facebook Advertising Experience," mention how you have done Facebook ads in the past and how you've excelled at it.

Wrap it up and say thanks - Thank the reader for reading your cover letter and propose the next steps. For example, "If you'd like to know more about my experience with Project XYZ, I'd love to chat!"

All clear? Just in case, you can also check out a real-life example below:

Does writing a cover letter still seem a bit complicated? Well, it is - to really explain everything you need to know about cover letters, we'd have to write a completely new guide on the topic. Which we did - thank us later! If you want to learn more about writing a cover letter, check out our full guide. Or if you need some extra inspiration, check out these 5+ cover letter examples.

How to Ace Your Next Interview

You've perfected both your resume & cover letter. Now, it's time for the next (and final) step - the dreaded job interview.

Whether you're an extrovert or an introvert, you probably hate the interviewing process. After all, sitting there while someone's prodding into your past experiences and judging the hell out of you isn't the most fun experience.

Did you know, though, that most interviewers ask the same questions? Yep - all you have to do is learn how to answer some of the most common interview questions, and you'll be an interview away from landing your dream job!

Want to learn more? Check out our complete guide to Job Interview Questions and Answers.

...And let's wrap it all up!

If you've followed all of our advice until now, congrats! You're probably an expert on how to make a resume.

To wrap it all up, let's brush up on some of the most important lessons we've learned so far...

Use the right resume builder. You don't want to mess around with formatting for hours before even starting to work on your resume!

Focus on achievements. Mention your achievements instead of responsibilities, so that you stand out from all the other applicants.

Include the must-have sections. That is, resume summary, work experience, education, and skills.

Tailor for the job. Everything listed on your resume should be relevant for the job you're applying for.

Perfect your cover letter. It's as important as your resume, so make sure you pay as much attention to it!

At Novorésumé, we're committed to helping you get the job you deserve, every step of the way! Follow our career blog to stay up to date with industry-leading advice. Or, check out some of our top guides:

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