What Are Hierarchical Organizations
The hierarchical org chart is one of the three dominant org chart categories (the other two are flat and matrix types). It is a kind of org chart that mainly shows the subordinated relationship with every single sub-department to the top entity. Normally, hierarchical organizations can be used in public sectors, business enterprises, or some other non-profit organizations.
Hierarchical Organizations for Business Uses
The majority of firms in the world follow a pattern of the hierarchical framework. Feel free to check the IBM org chart below for an overall glance of the company. Usually, such hierarchical organizations may have a Board of Directors, many departments with a series of subdivisions, or a separate and independent department for more purposes, like advanced research and development projects.
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
The horizontal org chart is a type of org chart that is set horizontally which is opposite of vertical org chart. The horizontal org chart has just the same function as other org charts do except the approach of the layout. Of course, you can turn a horizontal org chart into a vertical easily by changing the layout. When we make an org chart with fewer levels, it does not matter whether it is horizontal or vertical. Whoever if the org chart has many layers, it’s better to make it horizontal than vertical for high readability as well as good-looking appearance. Besides, there are more types of org chart like matrix org chart and functional org chart.
Here we present several horizontal org chart templates:
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.