What is a Small Business Organizational Chart?

A small business organizational chart will visually present the structure of a particular small company. This simple chart distinguishes the roles of every employee, indicates who should report to whom, and expectations in the setting. A small business' organization structure communicates the overall goal of your business.

The small business organizational chart can bring advantages other than clarifying the employee structure. This org chart can improve the business operation, present company success, and facilitate the company's future plans.

How to Make a Small Business Organizational Chart?

According to the Census Bureau's Annual Survey of Entrepreneurs, In 2016, the U.S. had 5.6 million employer firms, and 99.7 percent of which have less than 500 workers. A small business is often classified as having less than 500 workers. With this number of employees in a small company, creating an org chart will be essential. By having a small business org chart, understanding the organization structure will be easier. Creating one for yourself is now convenient, we are bringing to you some easy-to-follow tips for making an organizational chart.

1. Know Your Organizational Structure

Before going about making your small business organizational chart, you need to be familiar with the management's organizational structure. Gather the names of every employee, their designated position, and to whom they report directly to. This step may take a lot of time. You may need to talk to all employees to get your information accurately. Be sure to make a list of the information you have obtained to avoid leaving out details. Also, always put into consideration your company structure, culture, and the environment you are working before you begin constructing your basic org chart.

2. Select a Chart Format

Org charts actually utilize a certain structure. Chart types like functional, divisional, matrix, and changing are the typical structures used in constructing a small business org chart. The functional structure is favored by org chart makers because it mirrors a traditional business structure. Keep in mind that the chart type you choose should reflect your company's culture. Other than the structure, you have to put into consideration the chart layout. Is it going to be horizontal or in vertical? Utilize the perfect layout that will optimize viewing.

3. Begin Structuring Your Chart

Begin placing the names of the employees into boxes or circles. The complete name and position of the employee should be found inside the box or circle. Place on the topmost of your document the highest position and so on. Connect employees to their immediate head through an arrow. Do this until you have placed all employees on the chart. To avoid making your chart appear cluttered, make use of only one shape throughout your chart. Also, make sure the shapes you've used are of similar size.

4. Continually Update the Chart

Org charts should always be up-to-date. Make the necessary revisions to your org chart when changes in the staffing occur. Having an outdated org chart can hinder areas in the management that it should be supporting.

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