Having an organizational chart is one of the ways to effectively manage your growing business. It may not seem important but this is more than just a company illustration or display.
What Is An Organizational Chart?
An organizational chart or an org chart, as others call it, shows the internal structure of an organization or company. Each position or employee is represented by boxes or other shapes. The shapes contain their photos and other details like name, contact number, email, etc. Elbowed or straight lines link the shapes together to show the levels. Org charts basically depict the hierarchy and ranks of various people, departments, and jobs within the company.
Other terms that refer to it are organograms, organogram charts, hierarchy charts. Some also use organigrams or organigrammes.
Uses of Organizational Charts
Org charts have a lot of uses. Companies structure them in many different ways. The organizational chart can be a personnel directory or management tool. Most use it for planning purposes. It offers a lot of uses and benefits for everyone. These include:
- Show reporting relationships
- Display work responsibilities
- Enable employees to understand how their position fits the company or organization
- Have a visual personnel directory
- Improve and smoothen lines of communication
- Present other internal information like data hierarchies and business entity structures
Types of Organizational Charts
Keep in mind that it is better to have an organizational chart that mirrors the structure of your company. It also represents your management philosophy. These are 4 basic types of organizational charts.
1. Divisional Structure
This divides the chart by marketing area, geographical area, or product line. Each division has essential functions and resources. It gives a glimpse of who is responsible for which division.
2. Functional Top Down
This is the most common type of org charts. It divides the organization into smaller groups according to their special functions. For example, finance, HR, Marketing, IT, etc.
3. Flat Organizational Chart
This one is also called horizontal org chart. It basically consists of 2 levels – top administrators and workers. Moreover, there is no middle management level. Companies that use this involves their employees more in decision-making.
4. Matrix Organizational Chart
Organizations use this chart when there is more than one manager for each division or department. For example, Graphic Designers have their Graphic Design Manager. Additionally, they also work with a Project Manager.
Tips on Creating Perfect Organizational Charts
You can either use org chart software or create yours manually. Here are some tips to help you come up with the right organizational diagram whatever your choice is.
1. Make sure it fits on a single page.
2. Put the staff with the same title on a single box.
3. Make the size and space of each box even.
4. Put the Assistant below their Manager on a sidebar.
5. Indicate the position title first and then put the name of the person occupying it below.
6. Show Managers with 2 different titles on 2 different boxes.
7. Have an online version of your chart with links on your website.
8. Break down a large chart into smaller charts with links.
Need Advice on Creating An Organizational Chart for Your Company?
Having an organizational chart is just a part of the pie when it comes to starting a business. Nonetheless, you can always start with seemingly minute but important details like this. Need advice on creating one? Schedule your 1-on-1 coaching session with me today and let’s even discuss strategies for your business!