Organizational Chart Skills

Advantages and Disadvantages of Hierarchical Organisational Structure

Hierarchical organizational 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 the organizational structure. To assess this type of management style, it has advantages as well as disadvantages.

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How to Optimize Company Organogram: A Must-Read Guide

With regards to company organogram optimization, we usually alter the procedure of organizational construction so as to reach the scientific systemic management model. This can be achieved base on three principles.

 How to Optimize Company Organogram

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What’s the Best Org Chart of a Successful Startup?

In general, most of the startups have adopted a flat organizational structure in the early years which turns out to be a good result. They expand three to four times faster than their competitors with complex layers of management.  But when the young company grows to the matured organization, the org chart still keeps the same. The owner of the company fails to update the org chart because he mistakenly considers the management system as an inhibitor of creativity and flexibility. This wrong decision finally pulls the rapid growth to a stop and ends the prosperity of the entire company. So what’s the right org chart startup should adopt to keep the success sustainable? It will be illustrated based on two stages that a company stays. In each stage, the company needs different org chart.

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Best Organizational Structure for Small Business

As for a small company, the organizational structure chart must be concise and complete so that the whole company can move forward, with the least expense, normally and smoothly.

The responsibility of every fragment is as the following:

Best Organizational Structure for Small Business

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5 Elements of Organizational Structure Design

The organizational chart is a kind of diagram used to show the layout of personnel in a company, which tells us all the links between anyone in the organization. With this awesome chart, you can check for useful information as quickly as possible. It’s convenient for stuff to cooperate with each other. There are 5 key elements you have to keep in mind when drawing an organizational chart.

Work Specialization

Work specialization means the specific degree the employee has acquired. This element is often used to measure how task in an organization has been assigned to each person for most of the time the entire job cannot be done by one individual. Work specialization plays an important role in the direction of assignment distribution. That’s why specialization is called one of the most significant elements in organizational chart structure design.

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Benefits of Org Chart: Little Known Facts

Benefits of Org Chart

Org charts can benefit business a lot; therefore they become very popular with enterprises. Here are the top reasons why people use org chart.

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Main Disadvantages of Functional Organization Structure

In the functional structure, such as shown in the following Facebook organizational chart, functions are separated into different groups, resulting in some defects. Here are the major disadvantages you must consider:

facebook-organizational-structure

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Main Advantages of Functional Organization Structure

Functional organization structure is optimal for small businesses or companies producing standardized goods or services.

Functional Organization Structure Main Advantages:

  1. Offers a high level of specialization.
  2. Employees are possible to become experts.
  3. Staff working skills can be effectively improved.
  4. could enhance the work efficiency and productivity due to the specialized skills and technology.
  5. Employees are highly motivated as they see clearly their career path within the functional units.
  6. Functional specialization can minimize the cost of operation.
  7. Leads to high-quality technical problem-solving.

vertical org chart

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Functional Organizational Structure Introduction – Advantages and Disadvantages

When referring to the functional organizational structure, employees are grouped based on their roles and functions, resulting in functional units such as marketing, HR, finance, etc. Generally, the heads of these specialized units will report to the top management of the company. According to the company’s size, the functional units might be further divided into smaller units. The sub-division type of organizational structure seems to be the most common organizational structures that many companies have applied.

construction company org chart

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Org Charts for Easier HR Management

Besides illustrating the workforce, org charts can be applied by HR managers to handle some other basic work more easily. See how they help below.

Specify Work Responsibilities

In addition to the basic information, org charts can be used to illustrate more details about staff such as work responsibilities. When duties responsibilities are clearly delineated, they can be fulfilled more efficiently. If a certain process goes wrong, the person in charge can be found out at once to seek for remedies.

Visualize Work Relationship

With the reporting relation clearly shown, the working relationship can be understood at a glance. For example, in a project, one should figure out whom to partner with, whom to report to and who can offer help.

Org Charts for Easier HR Management

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