Lesson 1, Topic 1
In Progress

2.9. Categories of employment are established correctly in accordance with the organisation structure and organisational needs.

ryanrori January 12, 2021

[responsivevoice_button rate=”0.9″ voice=”UK English Female” buttontext=”Listen to Post”]

A new business or determined entrepreneur lacks the structure and development to succeed at first. Typically in a small business start-up the team lacks a set standard in structure that will actually work for them. The standards are yet to be set in place and in turn end up hurting company growth, progress and even revenue. However, most new start-ups all go through this phase because there isn’t a set standard in design for every company. So that being said most companies have different types of organizational structure. Sometimes it takes weeks, months, and even years to get a structural plan in place that works best for a company.

A new business owner will call all the shots and make all the decisions, so it’s somewhat impossible to think about proper organizational structure until a company has reached a certain point in revenue, employees, and business. Before any business can proceed from a start up, it must have the one boss calling all the shots, and in most cases would be the CEO or co-founders. All the decisions and support come straight from the top in one centralized region of the company. The founder or co-founders take all the serious matters and address them appropriately until the company can grow enough to have people put into place to achieve this for them. When they can a proper hierarchy can put set in place.

In a retail start-up situation, it would be the group of people in charge of the books, and getting the business of the ground would address solutions on a personal basis. Most big companies like Dell, McDonalds, or even Wal-Mart surely had to start in the phase at one point in time.

Developing your organisational structure is best done by drawing an organogram that can help you visualize your staffing structure.

An organogram is a visual presentation of the people, positions and responsibilities in the business that also indicate who reports to whom.  You will need to decide who will make up your management team and out of those individuals, taking into account the shareholders, who will be executive directors and non-executive directors.

Once you have developed an organizational structure, you need to develop job specifications for each individual.  Your people should know, and so should you, what they will be responsible for.  It is crucial for your staff’s motivation and job satisfaction to be clear on their deliverables.

You should also be very clear about the qualifications and experience you require from certain staff.  Some will require high levels of qualification like finance, marketing and legal jobs.  For others, it may be enough for the employees to have the necessary work experience to do the job.

Creating an Effective Job Description

Adapted from content excerpted from the American Express® OPEN Small Business Network

Creating a clear job description before you begin the hiring process can help you choose the best candidate from a pool of applicants. It usually consists of two areas — a summary of the job’s responsibilities, and a list of the key duties that will be performed. It’s worth your time and effort to think the job description through completely. A confusing, hazy, or incorrect description can make it much harder for you to match a candidate and a job, because you’re not sure about exactly what the job entails.

An accurate job description is also essential for drafting classified ads, job postings or other recruitment efforts. It lets you be clear on exactly which talents you’re looking for, and focus your ad on those attributes to attract the most qualified candidates.

Use the tips below when you’re drafting a job description.

Avoid generalizations

Be as specific as possible when you describe the duties and responsibilities you will need this employee to perform. Think in terms of the benefits this employee will provide to your organization or to your customers/clients. For example, don’t describe a video store clerk simply as someone who will “rent videos to customers.” Instead, if you use something like “will assist customers in choosing movies they will like by sharing his or her knowledge of recent or classic films,” you will know you need someone who loves film and can convey their enthusiasm to your customers.


Once you’ve created a list of responsibilities and duties, put them in order of importance. Start with skills that are integral to the job to be performed. This way you will know what is necessary for the successful execution of the job, what simply is desired, and what may actually be irrelevant. Hiring is often a matter of trade-offs, so by prioritizing, you’re helping yourself determine what you can or can’t live with.

Use measurable criteria

Be explicit about the kind of performance you’re looking for from someone, and whenever possible look for ways to quantify those criteria with numbers or dates. Otherwise, you may find that you’ve hired someone who can perform the necessary tasks, but falls short in productivity or throughput. For example, will an account manager be working with one, four or ten accounts at a time? Will a bookkeeper be expected to update accounts receivable daily, weekly or monthly?

Ask for help

Spend time with others in your organization who will be managing or interacting with a new employee to find out what they think the chief duties of this person should be. Those who are on the front lines with someone often know more about what day-to-day skills are necessary to perform a job successfully. You’ll find this input invaluable.