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All You Need to Know about Organizational Chart

This page introduces organizational charts in origin, types, usage, benefits and limitations as well as how to draw a professional organizational chart.

An organizational chart (also called organization chart, org chart, organigram, or organogram) is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions. It gives an overall picture of company hierarchy and personnel reporting relationships, so that company managers could gain insight for decision making and strategic planning. Generally, an organizational chart is a horizontal or vertical tree that contains geometric shapes to represent staff or divisions.


    Organizational chart for matkrting

Elements of Organizational Chart

In a standard organizational chart,

  • Solid line - depict a formal and direct relationship between positions.
  • Rectangle - represents a person, position, or department. In a hierarchical organizational chart, the Chief Officer or President is the top rectangle. The level underneath the chief officer contains high-level managers or executives, and each succeeding level includes the subordinates of the line above.
  • Double linked rectangle - might indicate a situation with co-supervisors.
  • Dashed line - indicate an advisory or indirect relationship between positions, while arrows indicate the flow of communication. See more about dashed line reporting relationship.
  • Divided box - indicate job sharing or dual responsibilities, a might be used.
  • Rectangle surrounded by dashed border, or a box containing either TBH or TBD - present an open position. TBH is abbreviated from "to be hired" and TBD from "to be determined".

Types of Organizational Charts

Chart showing the interrelationships of positions within an organization in terms of authority and responsibility. There are basically three different types of organization chart:

Hierarchical Org Chart

Hierarchical organizational chart is the most common structure and often used in larger companies that operate in a wide geographic area. In a hierarchy, people communicate with the person they report to and anyone who reports directly to them. The hierarchical organizations charts work best in stable environments that do not require a rapid change of strategy.

Hierarchical Organizational Charts

Matrix Org Chart

Matrix organizational chart is a hybrid of divisional and functional structure, which is used for reporting levels both horizontally as well as vertically. It is often used when the firm has to be highly responsive to a rapidly changing external environment.

Matrix Organizational Structure

Horizontal Org Chart

Horizontal organizational chart, one of the most common types of organizational structures, groups individuals by specific functions performed. The advantage of this type of structure is that it works perfectly when small companies are heavily project focused.

Horizontal Organizational Chart

Divisional Org Chart

A divisional organizational chart reflects a company organized along a product line or specific geogrophy. For instance, in a large manufacturing company, the divisions may stand for different production lines. Each production line has its own subordinate functional departments, such as accounting and customer service.

Uses of Org Charts

Organizational charts are effective visualizing tools to present structure and personnel relationships in an organization. An organizational chart has the following five principal uses:

  • To Display Management Structure 
  • It shows the management structure of the organization at a glance. It can also show other organizational structures, such as relationships between companies with common or affiliated ownership.

  • As a Planning Tool 
  • Use org charts to visualize and plan company reorganizations.

  • An Employee Reference 
  • It provides a reference for employees to help them understand the overall net and their role in the organization. Giving such an organizational chart printout to a newly enrolled employee will help him fit into the organization quickly with comfort. With this printout, the employee can easily see who his suoervisor is and who their colleagues are without bothering other staff.

  • An Employee Directory 
  • Adding other information, such as names, photos, titles, telephone numbers and email addresses allows the org chart to also function as an employee directory.

    Organizational Chart Benefits for HR Management

    Effective management of a company is essential for staying competitive. It is the goal of every forward-looking organizationn to decrease costs and increase efficiency. At the most fundamental level of managing an organization, you must have an org chart. See how organizational charts benefit a company in human resources management:

  • Identify key employees
  • Allocate your resources in the most efficient manner. An org chart will help you identify key personnel and put them in a suitable position to maximize their effectiveness.

  • Assess your organization
  • Evaluate the hierarchical structure of management and delineate clear paths of authority and responsibility. This will assist in creating a dynamic environment where employees understand their role within the organization and work together to further the goals of the company.

  • Develop and strengthen key areas of the organization
  • An org chart will show you the strong areas of the organization and identify parts that need to be reorganized for effective and efficient results

  • Create a dynamic environment
  • Energize the company with effective management of human resources. With an org chart you can instantly reorganize the priorities of the organization to deal with changing markets and competition. Today's fast paced environment demands the ability to immediately allocate resources where they are needed.

    Limitations of an Organizational Chart

    There are several limitations with organizational charts:

    • It only shows "formal relationships" and tells nothing of the pattern of human (social) relationships which develop.
    • It shows nothing about the managerial style adopted (e.g. autocratic or democratic)
    • It very quickly becomes out-of-date, especially in large organizations who change their staff regularly.

    Organizational Chart Examples

    The following organizational chart examples include trading enterprise organizational chart, corporation organization structure, hierarchical organization structure and service organizational chart. Free Download organizational chart software and view more useful org chart templates to gain inspiration.

    University Academic Management Org Chart Sales Department Organizational Chart corporation organization structure
    Academic Management Org Chart Sales Department Organizational Chart Public Health Non Profit Org Chart
    hospital organizatioal chart Content Marketing Organizational Chart Manufacturing Company Organizational Chart
    Hospital Organizational Chart Content Marketing Organizational Chart Manufacturing Company Organizational Chart

    Tips for Making Org Charts

    The organizational chart for a large organization can be space-intensive and complex, smaller charts may be utilized to represent individual departments. Use the following tips to create professional and eye-catching org charts.

    • To save space, use a staggered tree method, a columnar stack, or a list style which provides names or job titles rather than boxes.
    • To avoid the frequent needs to update an organizational chart, you might use position titles rather than the names of individual staff.
    • Using different shapes and colors can help to define different departments, work groups, job levels or other useful breakdowns.
    • Using company logos or icons can customize your chart to display the feature and style of your organization.

    Draw Org Charts with Organizational Chart Software

    You can use organizational chart software such as Microsoft Word and PowerPoint to create org charts. Using digital tools allows you to make revisions and additions conveniently. If you are running a small business, Edraw Max, an all-in-one diagram tool which can draw not only organizational chart, but also family tree, concept map and free-style charts would be versatile for you. Click to learn how to construct an org chart easily.

    Organizational Chart Type

    Edraw professional org chart application, OrgCharting, works not only for company structure visualization, but also for workforce planning and management. Besides, the chart itself can be used as an employee database, through which you can find, manage and update employee information. The view options of OrgCharting allows users to choose or define a special view to display relevant information only for special purposes. The professional org chart tool is worth trying!

    Organizational chart software

    Conclusion

    From what has been stated above, you may have a basic understanding of what an organizational chart is. Knowing the types, usage, benefits and limitations of org charts as well as how to draw a professional organizational chart will help you do professional org chart creation. If you hope to deliver your org chart with planned efficiency and interactive data, use OrgCharting would be a nice try!

    Read More:

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    Corporate Organizational Chart

    Organizational Chart Resources

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    How to Create Organizational Chart

    Design a Photo Organigram

    Basic Organizational Chart Symbols

    Your Ultimate Organizational Chart Software!

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