Organization chart

Business owner
(You)

Assistant(Staffing Marketing and HR(Staffing Operations(You)

Accountant(You)
Agency) sales(You) Agency)

Customer
Accountant Bookkeeper(service Technician
service(Staffing
(Service provider)
Agency)
provider)

Organization chart is a diagram that shows the structure of an organization and the relationships
and the relative ranks of its parts and positions or jobs. For a small business it is a visual
representation of the structure of a business. It outlines the role of each employee and clarifies
who reports to whom within the organization. An effective organization chart has the following
features;
Delegation- is the downward transfer of authority from a superior to a subordinate. In terms of a
sole trader, in this case James Chidza can employ some professionals to assign some of works
such as human resource manager as well as sells manager. This will help him to concentration of
time on more important activities in an organization. Good delegation can save money and
motivate. Poor delegation can frustrate.
Authority - this is the right to give orders, make decisions and enforce obedience. It is sometimes
delegated from someone. The sole trader has the greater authority but he may authorize others to
do some responsibilities. This helps everyone to know their roles and responsibilities within an
organization.
Span of control - the number of subordinates for whom a manager is directly responsible; can be
wide or narrow depending on a number of factors including experience of manager, nature of
business, skills of subordinates etc. using the diagram above the span of control is five. The span
of control should neither be too wide nor too narrow. A wide span of control result in insufficient
supervision while narrow span of control result in wastage of resources.
Chain of command - refers to an organization’s hierarchy of reporting relationships from the
bottom to the top of the of the organization, who must answer to whom. The chain of command
not only establishes accountability, it lays out an organization’s line of authority and decision-
making power. On the diagram above, for example, both assistant manager and human resource
manager report directly to the chief executive officer, who is the owner of the business.