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Business Organizational Chart

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Posted by James Freeman | 02/11/2022

Whether your organization is more hierarchical or flat, you can model it with the help of the business organizational chart. In this article, we will see what the business organizational chart is, its benefits, why we use it, how to make it, different types of business structure, and a lot more. So, let's dive deep into it.

What is a Business Organizational Chart?

The business organizational charts are the pictorial representation of the internal structure of the company. It tells us the hierarchy of the roles and entities in the company. Their structure, who communicates, and reports to whom? The responsibilities of the entity of the company, their relationship with other members, etc.

It usually looks like a hierarchical chart showing which role is derived from what role. For example, it will show us if there is a CEO in the company, then the CFO, CIO, and other C-suite will work under him. These charts are usually used for managing and planning the entities.

If elaborating more, then the business organizational chart is the graphical representation of the organization that tells us the details about the different departments at the company.

Benefits of Business Organizational Charts

The business organizational chart is crucial to know about the structure of the organization. It helps us to keep track of every entity of the company. Some of the benefits are listed below.

  • It makes communication and collaboration feasible across all the departments of the organization.
  • It shows the responsibility of every entity and helps to improve it.
  • It makes us understand the different roles in a department and how a department is derived from another department.
  • It helps us to acclimatize new staff to their responsibilities.

Why Use Business Organizational Charts

It is imperative to model an organizational chart for your company or department. Many companies work according to it. It tells you about the roles and responsibilities of the employees working in the company.

The business organizational charts help you to improve and extend the entity-based structure of the company. It's like a blueprint that tells you about the relationship between different teams, employees, and departments at the company.

The organizational charts are also necessary for this way that it helps you to understand to whom you should and need to communicate. The cherry on the top, the organizational chart, helps to do the risk evaluation and management of the company. You also do operational risk control plus; you can make a good disaster recovery plan if you have a business organizational chart.

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The Different Types of Business Structures

The business organizational charts are of four types, and their bits and bytes are mentioned below.

Functional Top-Down

Functional Top-Down

This type of chart is what its name suggests. It helps us to know about how the organization is working or functioning. The chart contains the departments like IT, finance, human resources, marketing, sales, operations, etc. But as the name depicts it tells us in the top-down order. First, the chart shows us the C-Suite department, and then the senior management takes the lead, then mid-management and, then the chart further flows in the same way.

Divisional

The divisional business organizational chart is used by those organizations that contain vast geography. They have multiple departments. To manage those departments, the divisional chart is made.

Divisional org chart

For example, the organization can have a human resource department, supply-chain department, hardware developing, and software developing departments. The whole finance and treasury department, etc. These departments then have more divisional and other types of business organizational carts to model their internal structure.

Matrix Chart

Matrix Chart

This type of chart models the structure in which the employee is divided into different teams and is working on a project plus, these employees report to the product or project manager. These types of companies work cross-functionally. This chart is used to track the communication and collaboration within companies.

Horizontal/Flat

This type of chart models those small companies, like a startup that contains little to no hierarchy. Those companies where there is no management or departments, etc. Where the employees manage themselves.

Horizontal/Flat org chart

How to Make a Business Organizational Chart?

In this section, we will not deep dive much but only discuss the general process of making a business organizational chart for a company. See the steps carefully.

Know the structure of your company

The very first step in this regard is to understand the high-level structure of the company. Is your company more hierarchical, does it contain many departments, is it more matrixed, or is it flat with no hierarchy or departments?

Know the employees

Now, gather the information about every employee in the company. To whom they communicate, their roles, responsibilities. In which department they work or communicate with. Every bit of information is required to model a structure for your company.

Deploying the information

See how you will mark this information on the chart. See the template below.

org chart

You have to mark all the information in this form.

Publish the chart

Publish it across the whole organization and consider it as a blueprint of your organization. With the help of this model, you can extend, correct, or trim the chart or structure again.

Business Organizational Chart Templates

Every novice can create professional and concise business organizational charts with Edraw Org Chart Maker and free org chart templates. The business organizational chart is an excellent way to illustrate the inner structure and hierarchy of a business or any other type of organizations. It can facilitate communication and help staff know their roles and functions in the business.

org chart in EdrawMax

EdrawMax offer lots of organization chart templates, including sales organizational chart, business board organizational chart, service organizational chart, market organizational chart, etc.

Use EdrawMax for Organizational Chart Creation

Doing a business organizational chart is very professional, and headache work. You need to perform this task very carefully as the decisions inside the company are made with the help of this. The professinal org chart software - EdrawMax cares for your needs.

EdrawMax is an all-in-one diagram-making software that helps you to create any diagram efficiently. You can make the organizational chart with the help of this software. EdrawMax contains dozens of templates that you can use to make your product faster. You are allowed to import your samples and modify them further with the help of EdrawMax.

The software contains thousands of pre-generated symbols that you can use to make you perfect. You are allowed to export your project to different social media sites and download it in different formats. The software is free for the preparatory work, but you have to go for the pricing option for more advanced features.

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