Your Small Business Organizational Chart – What to Consider

What is an organizational chart, and why is it important to your business? You may be asking those questions. If you are, then consider this information, because the chart is actually quite important and you will need to consider many things when creating one.

Chances are, you have already seen or heard of an organizational chart in the past. It is a flow chart of sorts that lists the positions of all employees at your company, and lists them in order from top to bottom. An organizational chart will show the chain of command for all employees.

Why is it important? It is vital that all employees know to whom they answer directly. They also need to know who is their ultimate boss, so that they always know who to go to when there are concerns, requests or questions.

One thing that can cause a big problem in a company is confusion. If you allow confusion to persist, your employees will lose moral and it could greatly affect their work and eventually lead to them leaving. An organizational chart is an excellent way to avoid confusion among current employees and help new employees get an idea of the chain of command.

Even if you have a very small business with only a few employees, an organizational chart is still vital. Often, in extremely small businesses, the chain of command can become confused. By providing your employees with a specific chart, you will be able to keep these problems at bay.

When you begin the process of making your organizational chart, there are some things that you will need to consider very carefully. The main purpose of this chart is to show who each employee’s direct supervisor is.

If you do not already have an exact chain of command in place, then you will have to take some time considering just how it should go. What people need to answer directly to you? Are there people in your business who are responsible for other employees? Do you have supervisors or managers?

You will have to answer these questions before you begin the process of your organizational chart. You can also use the chart to spell out what exactly is each person’s job responsibility.

You may want to include a short list of bullet points with each job title to show the main responsibilities. This means that you will need to take some time considering just what each employee does. This can be a great way to keep all job responsibilities in order and avoid confusion.

An organizational chart can be a great way to keep confusion out of any business. It can be helpful for small businesses especially, where lines can easily be blurred.