Types of organizational charts of a company

Published on 10/04/2024

Types of organizational charts of a company

Published on 10/04/2024
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Types of organizational charts of a company

The definition of a company’s organizational chart, from the perspective of business planning and control, is a process of vital importance for a company aiming for success and consolidation in the commercial market.

This process is strictly related to a winning strategy, as it can guarantee quality, efficiency, productivity, and reliability in the work team.

An entrepreneur aiming for success will undoubtedly have to start with the human resources and skills present in their business and must have the ability to improve them to maximize their performance.

What is a company organizational chart or business organizational chart?

The definition of a company organizational chart or business organizational chart is made through a document that represents the organizational structure of the same, that is, the set of options through which work is divided, ordered, and coordinated within the business logistics.

A company’s organizational chart shows the internal structure of the entire organization. From a strictly formal point of view, it is nothing more than a graphical representation formed by a set of elements that give life to a diagram, which can be vertical or pyramid-shaped, horizontal, and circular or radial. Sometimes they may include photographs, contact information, email links, websites, icons, and illustrations.

Conceptually, it represents the functional and hierarchical ties that hold people together within a company; the positions, departments, the division of tasks, decision-making, etc.

The organizational chart of a company represents the skeleton of the same that is built by a series of characteristics that guide the team towards the main objective of the organization. These are:

  • Differentiation: Division of labor
  • Structuring: Regulation
  • Integration: Coordination and control
  • Leadership: Motivation and drive

The choice of the legal aspect of the company; the definition of norms and procedures that participants must respect and the organizational model to be adopted, respond perfectly to what represents the definition of a business organizational chart.

The types of a company’s organizational chart, examples

There are several types, or models of business organizational charts, each depending on the perspective and organizational culture of the company. It is therefore essential to carry out an evaluation of organizational needs, in this way it will be easier to select the corresponding and appropriate model.

The different types of organizational charts are divided into three categories; by their visual representation, by their nature, or by the purpose they pursue.

Below we explain each of these types and will illustrate some with examples for their complete understanding.

Types of organizational chart by visual representation

These are different organizational charts of a company, developed according to their visual or graphical representation and are the most used and known.

Linear or vertical organizational chart

 

Types of organizational charts of a company

It is the most classic type of organizational chart, showing hierarchies in a pyramidal order, that is, with a structure from top to bottom, the CEO is at the top and under it the different departments and employees.

The vertical organizational chart is generally the most used organizational representation because its traditional and hierarchical distribution allows for quick understanding and facilitates development, thus adapting to organizations of different sizes.

Its main characteristic is to establish a stepped relationship between managers, those responsible, and employees, their departments and subdivisions, all always subject to a maximum authority, that is, the CEO or founder of the company.

Horizontal organizational chart

Types of organizational charts of a company

The organizational chart of a company with horizontal representation, organizes hierarchies from left to right; professionals with a higher position are shown on the left end and successive positions will unfold to the right.

A type of organizational chart, which depends on the organizational culture and corporate communication, promotes links and horizontal growth, promoting a healthy dynamic of dialogue and participation.

Mixed organizational chart

Types of organizational charts of a company

The mixed model for the development of a company’s organizational chart consists substantially of combining the structure of a horizontal organizational chart and a vertical organizational chart, previously described.

Always based on a defined hierarchical structure, it starts from a manager or leader and the subordinate positions are deployed from top to bottom, according to the professional development area or department.

This type of organizational chart is often used in large organizations.

Circular organizational chart

Types of organizational charts of a company

In case of wanting to adopt a circular model to develop a company’s organizational chart, it must be clear that the CEO, or well, the main representative of the company is in the center, and around him, concentric circles are formed where professionals of decreasing levels appear.

This type of organizational chart avoids direct hierarchies, promoting integration among professionals and departments, even functions and tasks. It is often used in companies where holacracy or anti-hierarchical organizational systems are managed.

Functional organizational chart

This type of functional company organizational chart is organized graphically in a vertical manner and is configured from the functions of each department and professional.

It is divided into areas or departments, but always starting from the CEO. Employees are arranged according to the capabilities of each employee, with the aim of promoting the overall functioning of the organization.

Its structure is quite marked and hierarchical, so it does not work for companies with dynamic labor structures.

Types of organizational charts according to the nature of the company

The following types of organizational charts are developed according to a representative objective and in function of the nature of a company or a business sector.

Microadministrative organizational chart

This is an organizational chart that represents a single company and graphically illustrates the organizational and functional structure of the same.

This type of organizational chart allows identifying the different units and business areas of the same company, as well as determining their chains of command.

Macroadministrative organizational chart

The organizational chart of a company called macroadministrative is carried out when a business has several companies in the same sector.

This type of organizational chart allows organizing and representing all the business units.

Mesoadministrative organizational chart

The organizational chart of a company with a mesoadministrative character is one of the most extensive and can be complex, as it illustrates different components of a company, not just employees and areas.

This represents all the companies or societies that are part of the business activity, thus defining the structural characteristics of a certain sector.

In practice, it is the organizational chart of all the companies in the same sector.

Types of organizational chart for a specific purpose

The organizational chart of a company within the category of specific purpose, are made to demonstrate the objective they pursue.

Informative organizational chart

This type of organizational chart by purpose, shows the most relevant information of the company, summarizing internal data of the same.

It is designed with the objective of making it publicly available; to be accessible to collaborators, inspectors and authorities, customers, suppliers, etc.

Analytical organizational chart

This type of business organizational chart is of a private nature since it can contain confidential information and serves to detect the distribution of areas, budget leaks, logistics errors, expenses, and remunerations.

Formal organizational chart

The organizational chart of a company of a formal nature is used to carry out global planning or by departments for the optimal functioning of the organization and must be approved by the director or CEO of the same.

Informal organizational chart

An organizational chart generally of a provisional nature and can be designed by any worker without the need for the boss’s approval, with the same objective as the formal organizational chart, for the planning of strategies that lead to the good functioning of the work development of the different departments.

How to optimize the management of a company’s organizational chart

The management of a company’s organizational chart depends on the level of staff turnover within the same, an inevitable process that requires organization and time to update the template and corresponding documentation.

To avoid confusion and obtain clarity, the company can rely on digital tools that speed up work and save time invested in manual processes.

The best alternative to keep the organizational chart of a company or sector up to date, is to opt for automating such a process with software specialized and dedicated to human resources departments.

The WorkMeter’s productivity measurement software is composed of different panels dedicated to personnel management, including the Organizational Chart that allows you to create and modify your groups of employees.

Having an organized group structure will allow:

  • To visualize the organizational chart in an orderly manner and quickly locate employees
  • To analyze activity data at the general level of the company, by groups or subgroups at the desired hierarchical level
  • To configure schedules, the expected activity, and the offline activity consultation options for the entire company or for a specific group.
  • To automate processes.
  • To keep the company’s organizational chart up to date.

Defining a company’s organizational chart is a necessary and fundamental process to generate clarity in the team, keep objectives aligned, carry out appropriate planning, and achieve business success within the commercial market.

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