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What Is An Organizational Chart?

12/24/2021
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All businesses have an organizational structure. This organizational structure becomes more complex, especially as the company grows and the number of personnel increases. Therefore, it is necessary to be aware of the chain of command. For the reason that, the organizational structure helps to explain the workflow and responsibilities. It's a quick way for employees to understand where to go for help or to respond to specific issues.

An organizational chart is one of the most important issues, especially in the field of human resources management, which requires serious effort and importance.

The plan that shows the task, function and role of each employee in a company is called an organizational chart. In an organizational chart, also called organigram, organogram, or organizational breakdown structure (OBS), the employees and positions are represented by boxes or other shapes, sometimes including photos, contact information, email and page links, icons and illustrations.

What To Consider When Plan An Organizational Chart?

The question that every manager or HR specialist seeks to answer is how to make a successful organizational chart for reporting relationships. So, what should be considered while making the organizational chart and in this process?

  • While creating the chart, positions should not be created on the basis of individuals.
  • This chart should provide information not only about the present but also about the future position of the business.
  • According to the business workflow, departments or sub-units should be correctly associated with each other.
  • When employees examine the organizational chart, they should easily understand who works for whom and with whom they can cooperate on what subject.
  • The schema should be created after the business objectives, strategies and roadmap are fully defined.
  • Deep analyzes and evaluations should be made in the process of creating the organizational chart.
  • The schema should contain job descriptions.
  • Employees should be able to make career planning correctly by looking at this chart.
  • The chart should even include positions or departments that do not yet exist in the business.
  • It should be given importance that employees follow the positions that may occur in the future. 
  • A solid organizational chart will aid in the company's institutionalization.


Organizational Chart Types

1) Hierarchical Structure

The most popular type is the hierarchical type. This type is mostly used in large organizations such as governments, corporations etc. Employees are grouped as having one supervisor based on function.

2) Matrix Structure

In the matrix organizational structure, employees have different superiors and departments. It is used to solve problems that arise in the decision-making process in complex organizations.

3) Horizontal/Flat Structure

Horizontal structure is especially popular with small businesses just starting out. Because they work with a smaller staff and have not yet grown to have larger departments and middle managers. Flat organizational structures give employees more responsibility and encourage clearer communication flows.

4) Network Structure

The network organizational structure enables managers and top-level management visualize both internal and external links. Managers spend most of their time running and controlling external relationships. An example is when a firm procures most of its products from suppliers. This type is quite complex and decentralized.

5) Divisional Structure

This organization chart groups the company by larger activities, geography, market, product and service groups. Large companies tend to prefer a divisional structure because they are too large to fit into a traditional organizational chart.

This type of organization  provides flexibility because each department operates independently and focuses on matters about theminstead of the orders of a central authority.

6) Line Organizational Structure

This form of organization is also referred to as a scalar-type or military organization. It is also the simplest form of chart template.Its authority is delegated from the top to the bottom. That’s why, we can say that the employees have formal relationships. Unlike other structures, these groups do not provide specialized or supported services.

7) Team-based Organizational Structure

Team-based organizational chart is the newer type of chart template. They are less hierarchical, and their structures are more flexible, promoting problem-solving, decision-making, and teamwork. Despite the fact that teams are less hierarchical, they usually have a management structure such as project managers etc. 

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