An organizational structure is the system of tasks (job descriptions) and reporting relationships (who reports to whom) that get the work done. There can be many types of structures depending on the company's culture and business needs. Also, during the life of a company, structures may change to accommodate economic and customer needs.
Things You'll Need
- Written business plan
- Written organization chart
- Scheduled meetings with employees
Design the business plan (products, equipment, employees, marketing, finances) with detailed information about the company. Include a visual diagram (drawing) that shows the flow of the work and the processes for getting the work done. This is the basis for the organizational structure (see Reference 1).
Create a detailed organizational chart (reporting relationships) that provides a clear picture of how decisions are made. A hierarchical structure (top down) allocates the problem-solving and decision making functions to senior level managers. A horizontal structure (empowered team approach) shares the problem-solving and decision-making functions across teams and departments (see Reference 2).
Schedule meetings with employees to introduce the organizational structure. The business plan and organization chart define the structure and provide a visual of how it will look. Explain how the work is going to get done and the expected positive impacts on the company. Conduct an open forum so employees may ask questions (see Reference 3).
Check periodically to determine how well the structure is working and analyze conditions that may require a new structure. Plan for any organizational changes to minimize damage control.