How to Successfully Implement Organizational Structure Into an Organization

In a start-up or very small business, the organizational chart often looks like a horizontal line with the business owner above it -- everyone in the company reports directly to him. As the business grows and becomes more complex, additional layers are added. Organization structure is implemented over time, with proposed changes to the structure described in the company’s business plan. The thought that goes into designing an optimal organizational structure is part of the annual planning process.

Develop Job Descriptions

Have each employee document what she currently does and what she is responsible for. Her job description should include the skills required to be successful at that position, who the position currently reports to, and who within the organization that position regularly interfaces with. The job descriptions help the business owner account for all the tasks and functions required to operate the company and determine whether workloads are reasonable. As the company grows, he may see that one manager is responsible for too many operational functions and has too many employees reporting to her. He could split that position into two separate positions and hire a manager for the new position.

Analyze Current Staff

Consider the company’s projected growth and expansion plans. Determine what skills will be required for each position in the company, particularly management positions. Decide whether your current staff members have the capacity to grow with the company and assume greater responsibilities. Determine whether current employees have the capabilities of supervising other employees and growing into managerial roles. Develop a career plan for each team member showing that skills they need to develop in order to advance within the company. This may include additional training or education.

Define Positions to Be Added

Gaps between your current employees’ capabilities and the skill sets required in the future will be filled with new hires. Create job descriptions for the positions that will be created in the upcoming year and beyond. Pay particular attention to the experience, education and skills each position requires. After carefully crafting the descriptions for these new positions, the business owner should be able to describe the ideal candidate for each one.

Create Organizational Charts

If the business plan covers the next three years, for example, create a planned organization chart showing what the organization will look like at the end of each of the three years. Each position in the company is represented by a box in the chart. Current staff members’ names are in their boxes. Positions to be added will just have the title, such as accounting supervisor. Design reporting relationships for each position -- who reports to each manager. Depicting the organizational structure in chart form helps the business owner determine if the organization is balanced -- ensuring that no managers have an unreasonable number of staff members to supervise and each manager has the support personnel needed to complete the tasks assigned to him by the company owner.

Present the New Structure

With the updated organizational structure designed and depicted in chart form, the small-business owner presents the changes to his employees. The owner should be candid about why the changes in structure are necessary to accommodate growth and to allow the company to run more efficiently. If employees understand the logic behind the structure, they are more likely to support it.