What’s organization and what’s organizing?
Organization: Organization is a group of people who work and cooperate together in order to achieve a particular aim.
Organizing: Organizing contains the following aspects:
- Identify all business processes involved and make a classification.
- Divide key processes into groups.
- Authorize leaders to supervise each group.
- Make necessary rules and regulations.
An organizational chart is an important part of an organization, as it’s the guidance of employee hierarchy relations. However, some small businesses choose to omit this step as their employee relationships are clear to see. This seems not wise. Why small businesses also need org charts? An org chart means much more than just outlining the reporting relationships of the staffs. It has many potential benefits on managing human resources issues. Now let’s talk about some key benefits of organizational charts:
The main function of HR department is to oversee department functions and manage employees by planning, implementing, and evaluating human resources policies, principles, and programs. Basically, it involves functional activities including hiring qualified employees, establishing compensation structure, training staffs, addressing employee relations matters, and maintaining workplace safety.
- Compensation and Benefits
- Employee Relations
- Training and Development
- Workforce Safety
An HR organizational chart example:
The construction company org chart is a graphical depiction of the roles and structure of the organization. Using an org chart, staffs and stakeholders can clearly recognize the operational relationships, so that they know how does the company work.
Generally, a construction company contains basic function units including:
HR, Purchasing, Project, Engineering, Finacial, and Marketing department.
Every hotel, whether it’s big or small, needs an organizational structure to carry out its daily operations. It is used to help divide tasks, specify the job for each department, and delegate authority within and among departments. Effective job specifications will increase work productivity and efficiency. Each hotel organizes the workforce in different ways. Here shows a medium size hotel organizational structure.
It was basically segmented into six divisions: finance, front office, human resources, food and beverage, sales and logistics as the following organizational chart:
What is a Vertical Organizational Structure
The vertical organizational structure is a strict hierarchical structure with power emanating from the top to the bottom. With a chain of command well defined, decisions usually move from the top down through layer by layer, and people at the bottom have the least autonomy. In the structure, each person is supervised by the one directly above him. Employees can clearly monitor their roles and duties.
Unlike vertical and matrix organizational structures, a horizontal organizational structure has fewer layers, normally two or three. It doesn’t have many chains of command. The top position of the structure is the owner of the business. The second layer contains managers or team leaders who report to the business owner. The third layers are team members supervised by the managers or team leaders in the second layer. The horizontal org chart has eliminated many middle management levels, thus can be considered as an employee-centered with emphasis on teamwork and collaboration. Without going through complicated hierarchies, employees have more contact with managers and even business owner.
Matrix organizational chart is composed of functional departments and the project teams for completing some temporary tasks. It’s a double tunnel command system. People have different roles and report to multiple managers. For example, when a project team wants to develop a new product, they will need to use personnel from the functional departments, such as engineering, research, and marketing. The personnel is under command of both the project team and their own departments.
An org chart graphically depicts the internal structure and hierarchies of an organization. It enables one to visualize the roles, relative ranks and the relationships between individuals. It’s also called organizational chart or organigram.
What does it look like?
Org charts usually use the inverted tree structure, with small boxes representing employees and lines connecting the boxes. The boxes will be filled with staff information such as their name, department, position, etc. The horizontal lines connect employees with the same level, and the vertical lines indicate the reporting relationship between a superior and the subordinate.
What to include on an org chart?
An organizational chart can be used to show the structure of an organization as a whole or broken down by division or unit. It will include information on the individuals, which you may add their basic information such as name, age, position, department, team, and photo, depending on your own requirements.