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how does a business change from informal into a formal organizational structure?

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Hey guys.

I am currently doing my business IA on the topic Human Resource Management. My RQ being, (1.)"should business X change into a more formal organizational structure to solve low staff morale?". The main solution that I am trying to suggest is whether this business should take on line managers for HR since the business I am analysing about is an informal one and the owner multi-manages all aspect of the the company including finance, HR and production, esp HR. In a sense, the owner of this company acts as HR recruiter, manager and supervisor and oddly, the business does not have line managers since they've only opened 2 outlets. This business is a fast-food chain restaurant and there are no line managers to supervise the restaurants. supervision is mainly through CCTV by owner ( not in-situ) and communication is mostly via telephone. I have been wondering for some time if maybe the question ought to be more of along the lines of (2.) "should company X take on line managers for HR in order to solve low staff morale?" but I reckon if I used that question the answer to this question would be pretty obvious that the business is in a dire need for managers since all businesses should have and i wont be getting any points for construction of research question. That's why I worded out the question such as in no (1.) since I take that taking on human resource managers would entail having a more formalized structure with the addition of a layer of organization personell in the hierachy( mostly management). But is my line of reason correct though? Does taking on management personell into the organization is what it takes to formalize an informal organizational structure of the company? An if not, then what does it take to do it?

PLease Help. Thanks. If the above explanation is confusing you just say so and I'll try to clear it out.

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