Learn about organization chart templates and how to use them in the company!

Currently, there are multiple tools in the business market that make the business more optimized, in addition to establishing processes and functions in a clear way so that everyone involved, such as customers, employees and partners, can understand the operation of the company. It should be noted that an example of these tools is the organization chart.

The organization chart consists of a company organization structure. And its purpose is to show clearly. The business hierarchy is direct and objective. Thus, anyone can view the positions and the operation of the project. Read on and learn about the types of organization charts and how they can be used in your company!

What is the purpose of an organization chart?#

The main purpose of an organization chart is to clearly organize the structure of an institution, whether business or educational. Therefore, its function within a corporate environment is to show in the best way the structure of the company in a hierarchical manner and the workflows, making the activities clearer for everyone.

Having an efficient organization chart avoids several communication setbacks and can help new members, as it is possible to better understand the entire company and the positions held by employees within the company.

What are the main types of organization charts and their characteristics?#

There are several business organization chart templates and each organization designs its own according to its needs. Even medium and small businesses can and need to have a good organization chart. That way, understand how each one works!

Classic organization chart#

This model has a well-known format in the business world. The classic organization chart is able to represent in a simple way the hierarchy that exists within an organization.

Normally, the first positions are occupied by the highest and most important functions and, below them, are the relevant positions, but not like the previous ones. It should be noted that this model is also known as functional, and what distinguishes it from the classic one is the name that goes inside the box. If the functions of each employee are entered, the organization chart is called functional; if the sectors appear, it must be called classic.

Circular organization chart#

In this model, hierarchy does not stand out. At the center of this organization chart, it is necessary to insert the position with the greatest decision-making power, that is, the president of the institution, and the other parts that make up the company must be inserted next to it.

The main idea of this organization chart is to reduce the differences between positions, to highlight the need for teamwork, where everyone can perform their functions collaboratively.

Matrix organization chart#

The matrix is very similar to the vertical or classic model when it comes to structure, however, it is used in companies that do not have the functions of each sector well established and, for this reason, have more flexibility.

To give you a better understanding, think about a project that is being developed by several people with varied functions, but it has a closing date. In this situation, this type of organization chart can be used.

Horizontal organization chart#

The horizontal organization chart is a model widely used by organizations that believe that the hierarchization of positions and the subordination of functions are no longer important within a company.

In this model, employees have more decision-making, autonomy, and can also perform other functions. In this way, no position is rigid, which makes the workplace more dynamic and informal.

Linear organization chart#

The linear organization chart is also called a linear organization chart of responsibility (OLR), its purpose is not to focus on the hierarchization of the organization’s positions, but rather on its tasks, functions, and activities related to each member. In this sense, it is important to highlight that its main objective is to show the responsibilities of each professional within the company.

Organization chart in bars#

The organization chart in bars is a model that focuses on the hierarchization of the various positions that make up an organization. However, its representation is performed with several bars arranged vertically and each one has a size according to the level of authority of each business representative. That way, the highest position is above and the bar size is larger than the others.

Information organization chart#

The informational organization chart seeks to present a set of important information in a synthetic and graphic manner. Thus, in this model, it is possible to delimit the organization’s communication flow. Therefore, if communication takes place from top to bottom and from bottom to top, this can be represented by arrows.

What’s more, it may be that basic professionals are unable to communicate with higher positions, such as the manager. That way, the arrows are not placed. Know that this is just one example of information that can be inserted in this type of organization chart. However, it is possible to place a set of data according to the objectives and characteristics of your business.

What are the advantages of an organization chart?#

It is very common to find companies with several companies with problems in their processes, often resulting from the lack of alignment between employees, who are unable to identify their leaders.

When a setback occurs in the work environment, the employee does not know who to turn to, since they do not have a pre-established superior. This directly interferes with the internal communication process and can be easily solved by inserting an organization chart.

Improves internal communication#

In an organization chart, it is possible to see the flow of communication within an enterprise. Thus, the manager can use this tool to show the role of each of the collaborators and those responsible for delegating tasks or planning activities.

In this way, internal communication is also interfered with by the use of an organization chart. Know that when each employee understands that they are their direct superior and who are the managers of the other team, they know correctly who to contact when a problem occurs, or even when they wish to suggest an improvement in the processes.

Optimizes the understanding of the hierarchy#

Even in organizations with a more flexible approach and that make use of the horizontal organization chart, there is a job structure that must be learned in order for the tasks to be carried out in the best way. The organization chart helps in understanding these functions, making it easier to quickly identify the employee that should appeal.

Furthermore, it makes clear the functions that present greater decision-making power and autonomy within the company, in order to make the internal process more strategic and efficient. Nowadays, it is essential to create good strategies to stand out from the competition and retain good talent. The organization chart contributes significantly to this objective.

Increase productivity#

There is no small number of organizations that deal with low productivity and with unsatisfactory results. Thus, many employees end up assuming that they don’t feel productive in their activities.

In this context, there are several reasons that can cause this and one of them is the lack of a good organization chart. When there is an objective business structure, it is possible to increase performance, since everyone will know what must be done.

It provides more organization and transparency#

For the business to be successful in the market, it is essential that there be a structured organizational culture. In general, professionals choose companies that show concern about certain factors, for example, organization and transparency.

This is because employees like to perform their functions in organized places, where they have access to all information. In this context, the organization chart allows everyone involved to know about the structure of the work.

Improves the understanding of the levels#

It is essential for companies that employees understand the levels present in the business and who is at the top and bottom. Even a flexible institution needs to present these definitions, since they help control activities and improve communication between workers.

There are three basic levels, the strategic, the technical, and the managerial. With an organization chart, it is easier to understand them, even if the hierarchy is not very present in the company. Most of the time, employees feel greater peace of mind and credibility when they meet managers.

Onboarding help#

When the company has an objective organization chart, organized, clear and appropriate to the reality of its processes, it can use it to assist in onboarding, that is, in the adaptation of new employees. This is because it helps new hires to learn about the company, better understanding who the people on their team and the leaders are. What’s more, this strategy provides a clearer view of the workers who are directly affected by the other’s work.

How to create an efficient organization chart?#

After knowing what the organization chart is for and what models exist, it’s time to learn how to prepare a good organization chart for your company. So, check out some tips on how to create an efficient organization chart!

Conduct a survey#

The first step is to list all the teams, functions, and people in the organizations, as well as the positions held by each of the employees. To do this, it is necessary to carry out research and conversations with each worker, this is called mapping functions and positions.

The recommended thing here is to use an online search tool, for example, a form. You can send it to all collaborators and request that the main information be filled in.

Identify the hierarchies present#

Then try to identify how many and what are the organization’s job structures, establishing the differences between them. This data is essential to know what is the most efficient way to assemble an organization chart.

Select the most efficient model#

It is necessary to evaluate each of the existing organization chart models, looking for the one that best suits your needs. This depends on how many positions your company has, as well as the company’s hierarchical levels.

What’s more, knowing your main focus also contributes to this decision, since there are some organization chart models that give priority to hierarchy, others already highlight the amount of information or the activities of each person within the company.

Don’t forget that the main purpose of an organization chart is to make the job structure of the business easier to understand. In this scenario, select the one that can contribute to the full development of your institution.

Choose the most correct tool#

There are many systems for creating a good organization chart. So it can be prepared in Word, for example. Thus, presenting all the different levels and their complexity. There are apps that you can even insert photos, so analyze the options on the market and choose the best one for success. The organization chart must be an instrument of socialization within the business.

The use of a modern application will make it easier to update the file, which is paramount because of the company’s normal employee turnover. Optimization is essential to make tasks simpler and more objective.

Confirm the information#

After the organization chart is ready, it is time to talk to the leaders of each sector and confirm the information present. Ask if the information about the collaborators is correct and if the hierarchies are entered correctly. After validation, you can make the organization chart available to the entire company.

Present the organization chart#

The organization chart can be printed, placed on a bulletin board, or made available in a communication tool, such as e-mail. It is essential that this graphic be shared, as it is intended to contribute to the development of your business. Restricting the information it uploads means that employees do not enjoy all its benefits.

Therefore, it is noticeable that the organization chart is a very important tool for you to manage company positions and to help create a global vision of the company by all employees.

That way, you now know how to prepare an organization chart and know how it can help your business progress, listen to employees and select the most appropriate one. It is essential to think about everyone involved in the process, as no company goes alone and efficient decision-making is essential for its positioning in the market.

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