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What is a company organization chart?

Everything you need to consider in your company structure

by Norberto
5 August, 2022
in Self Employment
0
company organization chart

Within a company, the control of its internal structure is basic. A company organization chart is a tool capable of showing and managing this structure.

It is not difficult to understand that internal functioning requires efficient management. When it comes to this internal organization, which includes all the structures of the business and how they relate to each other, the company organization chart is the key factor. It is a fundamental tool for any enterprise.

How to use a company organization chart

A company organization chart is usually a graphic representation in which the whole internal structure of a company is shown.

Inside the organization chart, we will find the hierarchical distribution, the interrelationships, and competencies according to the situation within the company. In its smaller version, a company organization chart should easily understand the company’s internal structure.

Accessing a corporate organization chart will allow us to detect vital elements in the company’s development, starting with the possibility of assessing possible errors within the corporate structure itself. Can detect Errors such as duplication of tasks, responsibilities, or simply inadequate management of human resources thanks to the organization chart.

It is also possible to update the company’s efficiency thanks to the possibility of analyzing the capacity to take on projects, management plans, task execution, etc., before their implementation.

In addition to the above, there are other issues, such as the ability to help us better understand how to distribute authority, especially from the point of view of controlling decisions and actions in the company. Finally, from an informative point of view, it is a very useful tool since it places each person in the place they occupy within the company structure. That is very useful from a practical perspective regarding the relationship between departments or people in the work environment.

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There is no single type of company organization chart. That is because it can be reflected not only from a graphical point of view but can be added information and supplemented in various ways.

Different types of company organization charts

There are four major groups into which to classify the types of company organization charts.

Through graphic representation

Here we find different types of organization charts. The vertical ones represented in branches show the company in a pyramidal way. These are the most common.

Horizontal organization charts are also relatively frequent, in which the display is from left to right, and the hierarchical levels are arranged in columns. Less frequent is the mixed organization chart that will combine vertical and horizontal.

Block organization charts are considered a modification of the vertical ones. In this case, combining more units within a smaller space is done. In this way, even the lowest hierarchical divisions are reflected more broadly.

Finally, circular organization charts usually distribute hierarchy starting from a central circle as the top point and then concentric circles representing the different levels of order within the organization.

Through their nature

We can clearly distinguish three groups in this company organization chart classification. The macro-administrative ones will include different organizational environments, representing business units in a simplified way; they are relatively common not only in the company but also in institutions or business groups.

At the other extreme, we would find the micro-administrative. That is a business organization chart representing the company exclusively, either as a whole or in detail, according to its composed areas.

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Finally, we would find the so-called meso-administrative ones, which represent specific sectors or branches of the company. We usually use them for calculating activity volumes in business environments or even as a starting point for regularizations in certain business sectors.

According to the purpose of the organization chart

Although can find other options, a company organization chart classified according to its purpose is divided into two groups. Firstly, informative corporate organization charts, aimed at environments outside the company itself and oriented towards communication. Secondly, analytical organization charts, which, in addition to structural information, add elements and data relating to the company’s behavior and activity. Their audience is that of an environment with knowledge of the company’s operation.

There are other ways of classifying company organization charts according to their scope, whether general or specific or depending on their content when they are functional or integral. However, all of them show the same capacity as a basic communication tool since a company organization chart is an instrument capable of leading the company structure and thus communicating its internal functioning.

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Contents

  • 1 How to use a company organization chart
  • 2 Different types of company organization charts
    • 2.1 Through graphic representation
    • 2.2 Through their nature
    • 2.3 According to the purpose of the organization chart

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