Wondering what’s the purpose of organizational chart? Read this article and you will find the answer and organize your business better.
What Is Organizational Chart
An organizational chart is a graphical representation of the roles, responsibilities and relationship between individuals within an organization and it is a simple way to visualize how work flows within a business. It can be used to depict the structure of an organization as a whole or broken down by departments or units.
Org chart can be classified as two types: vertical and horizontal, basing on approach of layout. A vertical org chart looks like a pyramid. At the top is CEO or company president and then each segment consists of series middle management and its manager who are responsible for their departments respectively. However a horizontal org chart has no middle management where lots of workers are made to report to one manager. It’s also called flat org chat. These two types of org charts are very different. This article is going to explain differences between them on aspects of decision-making, collaboration and communication.
Figure 1. Vertical Org Chart Example
Functional org chart is a popular organizational diagram usually implemented by small business companies. In this structure, organization can be grouped into separated departments by areas of specialty or function. Those departments are vertical and disconnected from each other.
Functional org chart is one of several common organizational structure diagrams many companies have adopted, and a clear depiction of how people are organized. Wherein employees are segmented basing on their skills and specialties. Usually, people are grouped into departments and made to report to and follow their department manager. Each functional manager is responsible for supervision and direction with his or her department subordinates. This article aims for explanation of functional org chart by five characteristics.
Functional org chart is a very common organizational structure that many companies follow, which is supposed to divide people into several departments according to peoples’ specialties and function they perform in the company. Persons with rich experience and profession would be appointed as department manager authorized to be totally responsible for department’s affair such as training, task allocating and promotion.
Definition of Functional Org Chart
The functional org chart divides people into different groups based on expertise and specialty. This structure gets involved in a great amount of process standardization within a company, with the real decision-making authority centered at the top of the organization. Employees in one department are responsible only for relevant tasks. For instance, a HR department that focuses only on recruitment & training, a sales department that only engages in sales activities, and an engineering department that only designs products and produces facilities.
A matrix org chart is one of the most complicated org charts a company can adopt but as well as the most useful one. This article is aimed to make a brief introduction to org chart mainly on definition and advantages. A matrix org chart is a very common organizational structure many companies follow especially the enterprise of internet industry. It is formed with grid or matrix. Besides hierarchy, employees are divided into teams by projects, which means workers have dual reporting relationship-a functional manager and a project manager.
Matrix org chart is a type of organizational structure combined functional framework with projected one. In accordance with Project Management Body of Knowledge, the level of authority project managers can own determines the strength of the matrix organization, to some extent.
Definition of Organogram
Organogram is an intuitive reflection of organization structure, one of the most common diagram to illustrate the relation among departments, superiors and subordinates vividly and briefly. It is defined as a top-bottom, with icon list, architecture diagram which can automatically increase vertical level. Organogram shows the correlation among organizational unit in the form of graphics and it provides great convenience for people to view detailed information of organizational units as well as the associated position and personnel.
Hierarchical organisational structure puts the authority and responsibility on the top side of the company and makes them flow down from the top to the lowest level gradually. This model works like a pyramid and centralizes all power and duties on people who stand on the peak of organisational structure. To assess this type of management style, it has advantages as well as disadvantages.