Your companys organizational strategy is centred around the development and communication of your Organization Chart. The Organization Chart takes the form of a graphical representation of the positions in your company. The top Position in the company (i.e. CEO or General Manager) is placed at the top of the Organization Chart. The various layers of management and supporting Positions are then arranged under the relevant management Positions right down to the lowest levels of the Organization.
Your Organization Chart not only defines the Positions in your business but the Employees assigned to those Positions. The Organization Chart clearly communicates the management and reporting structure of your business, specifically who an Employee assigned to a Position reports to directly.
It is extremely useful when developing your Organization Chart to take the time to design how you want your company to be structured when it is finished being developed. This approach will have the effect of setting a path for the development of your company. Once defined you and your Employees take the actions required to make it a reality.
Develop the Positions in your Organization Chart to be representative of specific work roles in your company. You should not develop your Organization Chart based on the employees you currently have in the company, rather you should develop the Positions based on logical groupings of work. One of the benefits of developing an Organization Chart is that it enables your company to become less dependent on specific employees and more dependent on the structure that you have developed.
An Effective Organization Chart:
* Communicates to your staff where you plan to take the business.
* Makes it easy to show new employees where they fit into the business.
* Gives you the opportunity to evaluate your current employees and how they fit into the future of your business.
* Shows existing employees what options they have for career advancement.
* Leaves no question as to who an Employee assigned to a Position should be reporting to.
Depending on where you are in the development of your company you will probably be filling many of the positions yourself. By choosing a position and actually defining and documenting the systems the position is responsible for you can readily employ someone to fill the position. This allows you to begin the development of other positions in the company.
You will get to a point where all of the positions in the Organization Chart are developed and you will have employees assigned to these positions. This allows you to begin taking a more strategic role in the development of your business or to take a step back and enjoy the freedom that a well defined business allows you. This is a great place to reach and is a huge step in your businesss development and your own personal development.