November 22, 2019
This section will provide individuals seeking a Forex Brokerage thorough information regarding roles of formalization, centralization, levels in the flat and hierarchy structures, and departmentalization in employee attitudes and behaviors, as well as Describe how the elements of organizational structure can be centralized to reach effectiveness and efficiency, Furthermore, it will provide an Understanding of structures for organizations.
Diagram:
Each department shown in the diagram is a company asset and capability, these departments are complied to CEO decisions, these departments are stakeholders to each other, the model above demonstrates an organizational flat structure, the flat structure has been favoured to specific points leading an organization to better coordination, efficiency, centralization and effectiveness in a Forex Brokerage day to day procedures. Furthermore, a Forex Brokerage assembling a flat structure will have a competitive advantage of expanding each department into multi-levels without any future complications such as decentralization, the Structure above is displayed to further develop awareness to any intending individual seeking a Forex Brokerage.
Department Responsibilities:
Responsible for driving overall growth of the Forex Brokerage. The CEO relies on Stakeholders (Marketing, Sales, Support, Finance, Compliance) in to achieve a decision with least impact that might conflict the Brokerage, a CEO circle of managers and department heads to focus on specific parts of the company.
Responsible for the overall maintenance of the firm’s servers, network, telephones and individual PCs. Additionally, the IT department must backup all sensitive data as well as have an emergency plan in place for unforeseen outages. This final point is crucial for a Forex Brokerage since stability in online-trading is a must.
The content of the website, advertisements, promotions, emails newsletters, SEO (Search Engine Optimization), Social Media Presence, planning seminars/expos, and data gathering are all responsibilities of the marketing department. An effective marketing department will adapt to new mediums of promotion, and trend changes regarding the marketing industry.
Responsibility to attract and convert new clients, but also maintaining relationships with existing customers to ensure a satisfactory experience, a large portion of a broker’s revenue is generated from traders who are pleased with their broker. Business development as well as IB (Introducing Broker) relationships also placed under this category. Due to the world-wide appeal of Forex Market, the sales department should have triple shift of staff (8 hours per shift or according to the agreement between the employer and employee (around the clock shifts)).
Responsibility of this department is to provide real-time support to customers. This includes answering inquires as well as performing specific account related request such as deposits, withdrawals, and closing accounts. To stay competitive, a support staff should also have triple shift of staff (8 hours per shift or according to the agreement between the employer and employee (around the clock shifts)).
Naturally all monetary decisions fall under the umbrella of the finance department. The execution model of the Forex Brokerage, for example, an STP set up, will make it easier or more difficult to predict revenue. Many departments will work closely with the finance department so it is important that the staff is well versed in all facets of the business.
All legal aspects of a Forex Brokerage are handled by the compliance department. This includes accounting, settling disputes such as trade audits as well as lawsuits. Since large amounts of money are transacted by a Forex brokerage, it is essential to have a compliance department.
The human resources department has the same responsibilities as any other department in any business. They are responsible for finding qualified candidates for a Forex Brokerage and should work closely with all department heads in job description creation to ensure that it clearly represents the desired skills for a Forex Brokerage team member that may be outside of the human resource department’s area of expertise. Human Resource (HR) is also responsible for creating an employee handbook and managing internal personnel issues such as vacations, conflicts, etc. Office management should be responsible for supplies and infrastructure vendors and fall under the preview of Human Resources.
CONCLUSION:
As seen above, each department was categorized and structured depending upon the forex market needs, a Forex Brokerage deals with a market that is 24/5 to which each department has been placed with careful consideration and thorough analysis based on experience, the I.T (technology department has not been included as this structure assumes the technology used is outsources and depended on second party providers as it is a time consuming and costly investment to develop in-house technology that suite’s a brokerage needs.
