Tag Archives: Functional Org Chart

Lucidchart vs. Edraw OrgCharting: Which One for Creating Org Charts?

Lucidchart is a good online diagramming tool for users to draw different types of charts including organizational charts. However, is it the only choice that you can pick? Are there any other better alternatives for creating human resources org charts? Let’s find out right now.

Lucidchart vs. Edraw OrgCharting – Add Shapes

Common Points

  • Both Lucidchart and Edraw OrgCharting have a clear user interface and are convenient for users to add employee shapes. For example, in Edraw OrgCharting as shown below, you can quickly insert managers, colleagues, subordinates or assistants.
  • Both of these two tools allow users to insert supportive materials such as images, comments, notes or hyperlinks etc.

Difference

  • In Lucidchart, you can’t one-click to select all shapes at the same level; However, in Edraw OrgCharting, you can one-click to select all managers or all assistants in an organizational chart;

Lucidchart org chart alternative Edraw OrgCharting

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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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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. 

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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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5 Functional Org Chart Templates

The functional org chart is a traditional type of org chart many companies adopt. Under this organizational structure, workers are divided into several departments based on expertise and function each person can perform.

Workers are required to get involved in duties within their departments and they have to report to their functional managers only. The functional org chart does not have a project manager role, which differentiates from matrix org chart where employees need to obey orders from both functional managers and project managers if employees are working on some projects. The figures below are some common functional org chart templates.

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What is Functional Org Chart

Functional Org Chart Baic Concept

The 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, the task allocating and promotion.

What is Functional Org Chart

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Functional Org Chart: Definition, Pons and Cons

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, an 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.

Functional Org Chart: Definition, Pons and Cons

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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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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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