How to Set Up an Organizational Structure

Setting up an organizational structure involves such things as reporting structures and work processes. One of the most important tools of an organizational structure is the organizational chart. This chart provides a picture of the various departments, who makes the decisions in the departments, and who reports to whom. Attention must also be paid to how the work is done in these departments as well as the required relationship between departments.

Things You'll Need

• Copies of sample organizational charts
• Copy of job descriptions
• Copy of written work processes

Instructions

1. Determine the reporting structure from top down beginning with the highest executive level in the company. Identify the employees for all of the departments including the managers and supervisors on an organizational chart (diagram showing the reporting relationships).The type (horizontal, matrix, hierarchical) of organizational structure is determined by company goals and needs.

2. Identify the work-flow process within and between departments. Examine how the work gets done starting with the beginning step all the way to the end result. Analyze any problem areas and determine solutions. Mapping (drawing a picture) of how the work flows is a good way to identify possible glitches or roadblocks.

3. Select an organizational structure team to analyze the proposed reporting structure and the work-flow process. The team should consist of employees and managers from various departments who have the ultimate responsibility for the work getting done. Inviting the input of a team helps to ensure acceptance of the structure.

4. Submit the organizational chart for approval to the appropriate decision makers (usually executive officers). Conduct a practice run of the work-flow process to mitigate any problems or issues that may arise before go-live (the real process) begins. Debrief the practice run for the positives and the lessons learned (possible issues).

Tips & Warnings

• Involve everyone that the structure affects.

• Solicit input from several supervisors and managers.

• Involve employees when possible.

• Don't introduce the organizational structure without careful consideration.

References

• Types of Organizational Structure
• Workflow Mapping