Guidelines for Organizing

Several management principles can be used as guidelines when designing an organizational

structure. Although there are many principles to consider, the focus here is on unity of

command, division of work, span of control, and the scalar principle. These principles are

applicable to small businesses although, as has been said earlier, they should not be seen as

etched in stone. They can be modified or ignored altogether depending on the business, the

situation at hand, and the experience of management.

Unity of Command

Unity of command means that no subordinate has more than one boss. Each person in a

business should know who gives him or her the authority to make decisions and do the job.

Having conflicting orders from multiple bosses will create confusion and frustration about

which order to follow and result in contradictory instructions. In addition, violating the unity

of command will undermine authority, divide loyalty, and create a situation in which

responsibilities can be evaded and work efforts will be duplicated and overlapping. Abiding by

the unity of command will provide discipline, stability, and order, with a harmonious

relationship—relatively speaking, of course—between superior and subordinate. Unity of

command makes the most sense for everyone, but it is violated on a regular basis.