Dear friend,
To set the design / chart following steps may be followed:
1. Identify the major objectives of the firm and derive primary line functions needed to accomplish the objectives
2. Organise from the top down by establishing a scalar change of authority and responsibility
3. Organise from the bottom up by integrating the activities of each function
4. Decide what management positions are needed for each activity
5. Identify the positions in group related work
6. Seek groupings to ensure balance in the distribution of resources
7. Check whether the spans of control are appropriate