Start from the work the company has to do, not from the people: what tasks must happen every day for the product to reach the customer? Group them into departments, give each department one person in charge and clear reporting lines, then place people in the roles that suit them.
Step by step
- 1
List all the work
Sales, delivery, customer service, purchasing, accounting, human resources, marketing and everything else.
- 2
Group it into departments
Each set of related work becomes a department or unit, even if that unit is one person today.
- 3
Set the reporting lines
Every employee has one direct manager, and every manager is responsible for only as many people as they can genuinely follow.
- 4
Write the job descriptions
The tasks, responsibilities, performance indicators and authority of each role.
- 5
Link it to the salary scale
Each level in the structure has a salary range, so promotions and raises are fair and easy to understand.
Do not tailor the structure to the people you have now. Design it for what the company will need in two years, then fill it gradually.
Job description template
Purpose, duties, KPIs, authority, qualifications and sign-off, with a short guide in every field.
Download the template free- how to make an org chart for a small business
- organizational structure example