organizational chart for small business structure
No of the size of your business, whether you’re just getting started or have a successful track record, developing and maintaining an organizational chart is an essential step in small business planning.
There are many reporting relationships to picture, particularly if your small organization has multiple managers.
Making an organizational chart can seem difficult, but using this method can help you create one that accurately represents various corporate structures.
What is an organizational chart?
An organizational chart, also called an org chart, is a diagram that shows how a company is structured.
It sets the chain of command in an organization, describes the reporting relationships between various departments and individuals, and clarifies the function of every employee.
Small business owners or the chief executive officer are listed at the top of the structure that is most frequently used. The vice president or additional members of the C-suite are listed after them. Employees are placed behind them, then department managers and team leaders.
An organizational chart is useful for navigating a business and can be included in onboarding materials to introduce new hires to the hierarchy.
By incorporating your trademark to the organizational chart, you can personalize it. For use in your designs, the Venngage My Brand Kit tool imports your brand identification from your website.
What kinds of organizational can a small business structure use?
For a small business, there are basically two sorts of organizational charts:
- organizational structure is simple
- organizational systems that are hierarchical
organizational structure is simple
A flat organizational structure, often known as a horizontal org chart, has little to no middle management in between lower-level staff and top management.
In the first few years of operation, this style of organizational chart is typical for small enterprises and startups.
This structure allows for swift and independent decision-making because it eliminates multiple tiers of management. Employees share equally in the decision-making authority for the company, and they are responsible for their choices.
Organizational Structure in Hierarchy
A pyramid-shaped diagram is a top-down or hierarchical organization. Most businesses use this typical reporting structure.
The top is occupied by one or more people, the middle is occupied by managers, and the bottom is occupied by salaried workers.
Each employee on the organizational chart reports directly to a supervisor, who is divided up into various departments. Government agencies and huge organizations are the most frequent users of this.
With the real-time collaboration function of Venngage, you can design the ideal organizational structure for your company. You can add team members and distribute comments and feedback simultaneously with a Venngage business account.
What function do organizational charts serve in a small business?
For small businesses, an organizational chart has a variety of benefits. Below, we list the main advantages of designing organizational charts.
An organizational chart enhances team communication
New job titles might be perplexing when a small organization begins to expand. In this case, it is essential that the organizational structure is recorded when smaller firms are merged with larger ones that have numerous teams and divisions.
Knowing your location in the organizational structure can help you identify your immediate supervisor and who to contact if problems develop.
It is simpler to identify the project manager or executive and the personnel who are involved in a project when using a matrix organizational structure. As a result, efficiency is increased throughout the entire company.
Organizational charts make it simple for new hires to get started.
It can be difficult for a new employee to get around the office. The onboarding procedure will be facilitated and the employee will be introduced to the chain of command by showing your organizational structure, like in the template below.
How to create a small business organizational chart
- Choose the organizational structure that your business will use.
Establishing the organizational structure an org chart will adhere to is the first step in creating one.
The hierarchical organizational chart or the flat organizational structure should be chosen depending on whatever best serves your company’s goals.
- Select an org charting program.
For some people, creating an org chart could be difficult. But there are lots of tools available online, both free and paid. The organizational chart creator from Venngage is among the greatest options.
We provide a large selection of expert smart org chart templates that are simple to customize with a few mouse clicks. Over 4 million high-quality free stock pictures as well as 40,000+ icons are available in our visuals library.
Make your org chart for your small business today
Streamlining communication and driving efficiency has never been easier than with the help of organizational charts. It is an effective management tool that can help improve team performance for planning purposes. Org charts also act as a visual personnel directory.
To help you organize your teams and ultimately lead them to success, use the organizational chart examples that we’ve shared in this post. These Venngage templates will help your company’s overall performance in the long run.