How Do We Design a Solid Organizational Chart?

How Do We Design a Solid Organizational Chart?
	Our small but growing services company is sketching out an organizational design to help us become more successful and deliver better value to customers. How do we figure out our organizational chart, levels of reporting, span of control and other aspects?—Organizing Our Chaos, services, Denver
	Organizational structure includes divisions of labor into functions or product lines, as well as the processes that combine people into work teams. You will need to consider three components all at once: Formal organizational chart unit structures that define workgroups by functions or lines of business. Workflows that lead to individuals throughout the organization being assembled into project teams based on their skills. (Not all organizations have this component, but it is generally considered to be essential.) Social networks, which can be altered by changes in structure. Span of control varies greatly by structure, values and corporate culture, but generally falls into two extremes. In the Fordist system, named for the principles of mass production engendered by automaker Henry Ford, people are viewed as replaceable cogs and not encouraged to think for themselves. The other extreme is use of empowered teams of employees who have authority to run their own work and improve processes, while managers help them achieve these goals by clarifying organizational needs and managing performance. Organization charts should provide an overview of business units and their positions within the company. They are designed to help people understand the relationship between positions or units and show roles and responsibilities. Your organizational chart should be clearly written so that even an outsider could readily understand it. It should include the following: Identifying information: division, department, section, unit. Name of unit, position and employee. Position title/classification, employee name and position number (new positions to be established should be reflected on the chart). Working titles and descriptive unit names may be used as well. Solid lines to indicate direct supervision. Broken lines to indicate a working relationship. Date and role of creator. Develop a structure that reflects the direction that your organization needs to go, rather than how it exists presently. Flat structures tend to foster communication and innovation--the president is clearly leading the company, but everyone else knows they have to do their part to succeed. Deeper structures tend to handle routine tasks more efficiently but may not be as creative.    SOURCE: Gerry Cain, TIP Research , Kansas City, Missouri, and Dr. David Zatz., Toolpack Consulting, Teaneck, New Jersey, March 1, 2006.