Friend, I will echo what archangel shared; but, may I add a bit more?

First, I would clearly define roles via a job description for both of you (e.g. operations, human resources, fiscal responsibilities, public relations). Then - for your employees.

Second, post policies (i.e. in a binder, on a bulletin board) and set aside training time to go over some of the tasks that have created the recent confusion/tension in the management practices. This will allow the employees to have opportunities to respond to questions within their processes... to have the "what if..." hypothetical situations addressed.

Lastly, document any and all discussions with employees in the event you're looking to grow your employees as much as your business. The documentation will be handy for such things as promotions, incentive pay, justifying time off, disciplinary actions leading up to (and including) termination, fending off future lawsuits over your human resources policies, et al.