Organizational Chart
An organizational chart is a graphic representation of an entity’s structure, concentrating on the relations between its members or employees. It depicts how individuals within a company are interconnected, clarifying their roles and responsibilities, singling out departments and emphasizing managers’ roles. Such way of visualization does not just mark the positions, but also aids in organizing processes and procedures inside a company, especially in complex multidepartment entities. In different sources, organizational charts might be alternatively called “org charts” and “organization charts”, with all these terms referring to the same concept.
Organizational Chart main features
As the main function of an organizational chart is to clearly depict how the employees are interlinked withing the company, the emphasis is put on each member’s hierarchical status, thus arranging the units representing employees in a specific order and matching them by lines or arrows to denote relation and subordination. For instance, if an employee reports to a certain manager and to this person only, the employee is positioned under that manager in the chart and is connected to the manager by a line.
How exactly an organizational chart is designed is less important, as the main features of a good chart is a clear layout and comprehensibility of the structure. These goals might be achieved by using simple graphic elements such as squares, lines and circles, with no need of complicated artistic designs, although it’s not restricted if that doesn’t impede the perception.
An organizational chart might represent the whole structure of an entity, or specify on a certain department or a branch. In any case, an organizational chart is a convenient way to reach several objectives. Firstly, it’s used to introduce newcomers to the structure of the company, easily describing each employee’s position. In addition, it provides an easily assessed description of the company’s chains of command, which might serve as a useful reminder in different situations when it’s necessary to reach a certain position or an individual quickly.
Organizational charts also give clarity to current employees, signifying their positions, direct superiors and subordinates to eliminate confusion and organize efficient reporting and carrying out working processes.
One more way to put an organizational chart to practice appears when a company goes through a process of reorganization, serving as a useful basis for analysis and visualizing the former structure, with the possibility to reflect changes being made.
Most common type of Organizational Chart
As many companies have a hierarchical inner structure, the most frequently used type of organizational charts is a hierarchical chart. In a hierarchical organizational chart, all the company’s personnel is depicted in a vertical order, with highly ranked persons situated atop the chart and their subordinates positioned right below them, with all direct links being marked.
The positions reflected in a chart and its general structure depend on the company’s type. Organizational charts for a public company, a non-profit entity and an educational institution would be not the same, although bearing some similarities.
If we focus on a public company, its shareholders are usually positioned in the top of the chart, then its board of directors is situated (with its members depicted hierarchically again, i.e. the top position is reserved for a head of the board, below whom other members are arranged, with executives of lower positions being depicted under them, and so on). Below the board and executives, the rest of possible positions is arranged, with their relationships of subordination being marked by situating on different levels and special symbols.
If the structure, positions and links between the individuals are depicted correctly, the particular way of organizing a chart is not essential, as there’s no single correct way to depict it and different variations are possible.
Organizational Charts alternative forms
If a company’s structure cannot be fully represented by a hierarchical org chart because of the company’s specific features, there are other types of charts which might suit better for the purpose.
Other popular forms of organizational charts are the following:
- A horizontal, or flat, chart. This kind of org chat fits better to represent a structure of the entity that provides its workers with more autonomy and a wider range of rights. In this chart, individuals are depicted in a horizontal plane, which indicates their larger ability to make independent decisions and less dependence.
- A matrix organizational chart. Such a chart might come in handy to depict a complex structure of an organization, in which an employee might report to several managers independently. For example, a worker might have two separate projects in work, which are supervised by two separate executives. To represent such complicated relations, individuals are grouped by different parameters, thus forming a matrix chart.
- A divisional organizational chart. A company with significantly diverse product lines or several regional branches might employ this type of org chart for better reflecting its complex structure, as a divisional chart presents the company as a set of divided units, separated by certain parameters.
