Avoiding Confusion to Realize Profit: Organizational Charts

Blogon June 7th, 20112 Comments

One thing that can cause a big problem in a company is confusion. If confusion is allowed 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.



Small businesses can often make the mistake of thinking they have no need for an organizational chart. Having a clearly defined reporting structure is actually quite important and you will need to consider many things when creating a chart.

An organizational chart outlines pictorially the chain of command for all employees. It lists the positions of all employees at your company, and lists them in order from top to bottom. Even if you operate a very small business with only a few employees, an organizational chart can still be helpful. 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.



Consider this, if each employee was completing work designated to them by their position and brought concerns to the appropriate position or level of management how much more effective would your office be? Emphasizing structure in small businesses can help the business move forward and plan out how staff and departments to grow.

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? There are many different types of software available to help you create these charts.

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.



2 Responses to “Avoiding Confusion to Realize Profit: Organizational Charts”

  1. Gordon Allen says:

    Many useful points are made in this blog. Being clear on responsibilities is also a key to avoiding employment related litigation. “”Flexible” certainty is usually comforting to both employer and employee.

  2. Gitika Chawla says:

    This is a great article. There are very interesting points addressed in this article which are vital to the successful operation of a small organization. Contrary to the traditional outlook, that small organizations should have fewer layers of management since fewer management levels means fewer managers to pay, which will help the organization cut its cost down. However, the benefits of having an organizational structure in a small organization might far outweigh the costs that come with having increased management layers.

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