What is an Organizational Chart?
It is common practice for businesses to have an “org chart,” or organizational chart, which is a graphical representation of the company’s structure, most notably the reporting structure. To display the organizational structure of a company, government agency, or another group is the most common use of an org chart.
In addition to their many practical applications, organizational charts can take on a wide range of formats. Some examples of possible applications are a management aid, a planning resource, or a directory of employees. It’s possible that rather than a “command and control” structure, your company functions through the use of interdependent teams.
Types of the organizational chart
In general, there are four distinct kinds of organizational charts:
- Practical top-down approach
Typical corporate structures are represented by functional, hierarchical organizational charts. The organization depicted above has the C-suite at the very pinnacle, followed by other members of senior management, then middle managers, and so on. Based on the responsibilities of each employee, the company is organized into the standard departments of information technology, marketing, finance, human resources, and operations.
Staff members who share a comparable skill set and area of expertise are clustered together in this organizational setup. However, they frequently experience difficulties in being seen and heard by other divisions.
- Organizational Breakdown
If your business is structured by product line or geographic region, you likely have a divisional organizational chart. SUVs, sedans, and electric cars are just a few of the several types of vehicles that a car manufacturer might have separate divisions for. Then, there is a separate organizational structure for each department, such as IT and marketing.
Such a divisional setup is used by a corporation when its many departments need to maintain a certain degree of autonomy from one another; yet, it might result in additional administrative and accounting burdens.
- Structured Matrix Diagram
Employees in a corporation with a matrix organizational structure work on teams organized around specific projects or products and managed by a project or product manager who reports to a separate functional manager. It depicts an organization in which different departments work together horizontally rather than in silos.
Even though a matrix organizational structure has its benefits, such as improved and more open communication and the ability to quickly reallocate resources to where they are most needed, it can also lead to chaos and conflict as employees struggle to keep track of their various responsibilities and their superiors’ shifting attention.
- Organizational Structure That Is Totally Flat
There will be few if any, layers of management between the top executives and the rest of the staff in a flat organization. Each worker is given more autonomy and a bigger voice in decision-making under such a setup. The practice is more common in smaller establishments, but it can be found in bigger firms as well.
Uses of Organization Chart
There are several cases in which an organizational chart would prove useful. In this article, we will discuss some of the ways in which an organizational chart might help your business or team.
- Do not forget to provide your job titles and reporting structure.
- That will help leaders deal with expansion or alteration better.
- Help workers see the big picture and how their efforts fit into it.
- You should work on enhancing communication channels.
- Make a picture roster of your staff.
- Demonstrate the organization of data or the structure of a corporate entity.
It’s important that the company’s management ethos and structure are reflected in the organization chart.