Organizational Chart Skills

Types of Organizational Structure: Most Essential Ones for Your Business

Why We Need Different Types of Organizational Structure?

There may many answers to the question of how to successfully promote a brand, but effective types of organizational structure are the very basic determinants of such successes. A company with a well-structured framework would have a higher level of clarity and focus in terms of leadership, teamwork, and authority.

Most Essential Types of Organizational Structure

In reality, every business organization from a startup to the international enterprise has a specific organizational structure, but all of such types of organizational structure can be summarized as the following main formal categories. Each of them has both benefits and drawbacks, and may only work at sometimes depending on your company goals, organizational culture, salary structure and so on.

Functional

This type is also known as the bureaucratic organizational structure, which is mainly based on the specialty such as sales, finance, marketing teams and more. Each division has a manager or leader who oversees the overall department.

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The Non Hierarchical Organization: Advantages and How to Choose

An org chart shows an enterprise’s workflow and authority structure. Normally, organizations in the world can be categorized into hierarchical and non hierarchical ones. The hierarchical org chart type accounts for the majority of the worldwide corporate framework of business organizations, while a non hierarchical organization has fewer centralized authority with fewer management levels.

In the following example of a technology startup, each member in their own department has equal authority and power. Moreover, one member is selected from each department to collect and share info with other departments.

Non Hierarchical Organization chart example

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Nonprofit Org Chart: Definition & Key Points

What Is a Nonprofit Org Chart?

A nonprofit org chart shows the organizational structure for a nonprofit institution (NOP).  In reality, NOP parties are normally not driven by business profit, and such types are often used for trusts, cooperatives, charity and religious groups.

Nonprofit Org Chart Normal Structures

Here comes a template for a nonprofit organization. Overall, the sub-departments are in a similar pattern with profit organizational structures because you can clearly see the sections for Human Resources, Marketing, and development etc. However, there is a Fundraising Committee in the diagram below, which is different from commercial organizations.

nonprofit org chart template

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Flat Org Chart: What Is It About?

What Is a Flat Org Chart?

The flat type organizational structure, which is also called as the self-managed type, only has a few levels of management between general staff and managers. In other words, you would probably see a large number of employees or interns supervised by every single executive. Therefore, in such cases, department leaders in a flat org chart usually have more responsibility than a manager in a traditional hierarchical org chart. Moreover, the main purpose of the flat organizational structure is to empower employee.

Flat Org Framework Main Advantages

  • Reduce unnecessary layers of the managers in order to improve the coordination and productivity.
  • A quicker decision-making process among team members than those companies who have overloaded management positions.
  • Practice personal leadership in an ever more open and free working environment.
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Company Org Chart: Do You Know All of These Essential Types

A company org chart normally shows the insights of the overall employee within a company. Members and roles usually cover general staff, interns, department directors, managers, team leaders, chief executive officer etc. A typical company org chart has the following common types:

  • Hierarchical: In this kind of org chart, each individual division is subordinated to the top entity.
  • Matrix: The format normally has more than one reporting line, which can be shown in a series of cross lines.
  • Flat: The type is also called as the horizontal org chart, where only limited levels of management roles are involved.

Company Org Chart Templates

Here is a template for the hierarchical type org chart. You can clearly see the top position in orange leads the overall team or department. The four green ones are sub-leaders. In reality, it is the most common case for companies.

company org chart in hierarchical form

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Startup Org Chart: Must Known Steps to Boom Productivity

You are telling people your business since the minute you start creating the startup org chart. Traditionally, people use org charts to explain who works with whom in an organization. Furthermore, an effective startup org chart can really have a considerable impact on your business. So… just thinking about how to boom your productivity via org charts.

Startup Org Chart: What Is Your Business Type?

Product or Service-based Framework

This type usually has a number of products waiting for development. The shared divisions are all the same for each of the product team. The sub-departments of each product team are normally also the same. The type is used when each product features have a considerable difference in the development process.

product based Startup Org Chart

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What’s the Purpose of Organizational Chart

Wondering what’s the purpose of the 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 workflows within a business. It can be used to depict the structure of an organization as a whole or broken down by departments or units.

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Differences Between Vertical and Horizontal Org Chart

Org chart can be classified into two types: vertical and horizontal, based on the style of the layout.  A vertical org chart looks like a pyramid. At the top is the CEO or company president. A single segment consists of a series of middle management and the manager who is responsible for their department. In contrast, a horizontal org chart has no middle management, hence normally all employees need to report to only one manager. Such type is also called the flat org chat. This article is going to explain the most significant differences between vertical org chart and horizontal org chart in terms of decision-making, collaboration, and communication.

Figure 1. Vertical Org Chart Example

Differences Between Vertical and Horizontal Org Chart

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4 Tips for Creating Functional Org Charts

The functional org chart is a popular organizational diagram usually implemented by small business companies. In this structure, an organization can be grouped into separated departments by areas of specialty or function. Those departments are vertical and disconnected from each other. 

org chart software interface

Download the Free Org Chart Software
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Five Common Characteristics of Functional Org Chart

The 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 based 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 an explanation of functional org chart by five characteristics.

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It Fits Small Companies Well

As for small companies, their functional org charts get low hierarchy layers, therefore, it’s concise and clear which can make the company operate efficiently. Functional org chart performs well when the hierarchy layer is less than four. While as the company expands to a very large one,  functional org chart would be much more complicated and redundant even cause bureaucracy which would make it hard to management and organization to respond to outer market quickly.

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