Organisational Structure

 

 

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Why it is important to clearly define a structure  for your expanding business 

 

When you first set up a small business, your prime concern may have been making a profit and staying alive. As time passes and you find customers who like your products or services, you may need to take on an employee to help to absorb some of the workload. Your employee will probably end up being "Jack of all trades" and not really concentrating on their original role or specialty they were employed to do.  This situation works well for the small business, but once you start to employ more and more staff, things can get a bit tricky: 

  • Your employees may argue over the tasks they feel they were not taken on to do 

  • Queries don't get resolved because your time and availability are spread so thinly, and your employees haven't been asked to sort it out.  

  • Work gets neglected or ignored because there is no-one to check quality standards or help train new staff.

  • New employees don't last long because no-one can spare the time to show then the ropes and make then feel they belong.

  • Customers and suppliers have no real point of contact so you either loose business or orders fail to arrive.

The list of problems which can arise by hoping your business will organise itself can be enormous.  If some of these examples seem familiar, then you might consider creating a business organisational chart to help you to organise your business more clearly.

 

 
A clear organisational chart lessens the  likelihood of confusion by all concerned, it will also help you to plan for future expansion with greater success.

 

What is a business organisation chart?
An organisational chart clearly identifies a company's characteristics to enable both employees and bodies external to your company (customers, suppliers etc) to identify the make-up of your company. It identifies the number of people working in your company, what your company hopes to achieve and your its line of command.

By clearly outlining an organisational structure you will be identifying:

  • Who is responsible for what areas of business
  • Who to go to with problems or queries arise
  • Why the company exists and what it hopes to achieve 
  • Who is is responsible to who

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Last updated: January 07, 2002.