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With the necessary functions needed to run the business and the roles of key individuals in the organisation defined, you can develop and refine the structure by producing an organisation chart. This chart is a tool that helps to define the inter-relationships between all departments, divisions, teams and people. It defines reporting structures and lines of authority and responsibility, providing a picture of how the organisation functions.

Failing to define workplace roles and lines of authority can create tension, miscommunication and inefficiency within your business. People may be unsure as to what jobs are their own and who they are required to report to creating inefficiencies that can cost time and money.

Usually business organisational structures are planned as a hierarchy with the most senior position in the business (usually the owner) at the top and those with the least authority within the business on the bottom. 

Organisational hierarchies have become flatter in the past decade to promote better communication and more employee responsibility within the workplace. This means that a lower ranked employee is able to communicate directly with those above him without necessarily having to go through middle management where ideas or complaints may be disregarded.