Formalization and optimization of informal companies:

Case of a grocery company in Chiapas, Mexico

Abstract

Organizational informality is a common problem that affects the effectiveness, efficiency and competitiveness of many companies. A case study of a Chiapas food and beverage company illustrates how the lack of a defined organizational structure can negatively impact business development and growth. The main objective is to analyze the organizational structure and its current characteristics for the design of an organizational structure that allows formalization that improves the functioning of the company. The methodology used was deductive, with a qualitative approach, at a descriptive level, using semi-structured interviews and direct observation. The findings reveal problems such as undefined hierarchical and authority levels, incorrect assignment of activities, duplicity of commands and multinational roles. These features of an informal structure generate confusion and operational inefficiency. Implementing a formal organizational structure will allow for better assignment of roles and responsibilities, optimizing operations throughout the organization. This, in turn, will contribute to improving the productivity, efficiency and competitiveness of the company, facilitating its growth and sustainable development in the market. Subsequently, to address these challenges, it will be crucial to develop an organizational design that clearly defines hierarchical levels and jobs. This design must consider internal and external factors of the company, and generate strategies according to its activity.