Organizational chart: See how to create the structure easily!

The organizational chart can be simple or detailed, and represent different hierarchies in the organization. Discover its importance in this text!

What is an organizational chart?

It is a graph that reflects the formal and hierarchical structure of an organization. By observing this tool, we can understand the correlation between the parts of a corporation.

The credits for the creation of the first organizational charts were given to railroad administrator Daniel C. McCallum (1856).

The definition of position is comprehensive, based on different foundations, such as function, task, duties, position, etc.

This tool presents in an organized manner the positions occupied by each employee or activities that must be carried out by priority level, for example.

It is used to present different information in any type of organization, and is very common in companies.

It is very similar to the concept of a family tree, the main difference is that the tree is organized by the oldest ancestor.

The information is distributed in a structure with rectangles, boxes, circles or any other similar symbol.

There are cases where photographs are also used, as in the family tree.

In addition, lines are also used at the base to connect and communicate. They serve to highlight information and show how the components relate to each other.

See below the main types of hierarchical graphs.

1. Vertical or classic organizational chart

This is the most common model used in companies. It presents positions distributed by hierarchical level.

Information and levels are distributed from top to bottom, so the person with the most influence in the company is at the top, while the other positions are distributed below him in order of autonomy.

Usually at the top of the business hierarchy chart there is the CEO, general director, president, manager, etc.

The next bars show the departments, subdivisions, technical or operational positions.

It is important to emphasize that although we always state that positions are distributed in order of importance, this may not be the correct term to apply.

This is because all the parts arranged in one organization chart are important for the development of the organization.

Normally, using popular language, it serves to show who is in charge or has more administrative responsibility, and to demonstrate the role of each person in the company in an organized way.

2. Horizontal organizational chart

This model is not the most common, but it has an innovative concept.

It is used by companies that believe that the subordination of functions and hierarchy of positions is not the most significant.

Organizations that use this model want to give their employees more autonomy.

They believe in the power of decision-making and also in the importance of creating opportunities within the team so that professionals can develop other functions, and thus grow professionally.

3. Circular or radial hierarchical chart

In this alternative, the hierarchy is not at all noticeable. In the center of the circle is the position with the greatest decision-making power.

However, the other positions are distributed around, forming a large circle.

This is a modern model and serves to optimally convey the idea of collaboration between company departments.

It's a great tool to highlight teamwork and bridge the gap between roles.

4. Linear Responsibility Organization Chart (OLR)

Its mission is not to present the hierarchical level in the company, but rather to show the interrelationship between the activities, functions and tasks of employees.

In addition to these 4 alternatives, there are still other models of hierarchical chart, for example:

In bars;
Lambda;
Flag;
Informative;
Wyllie's Dial;
Functional;
Matriarchal.

The alternatives can be useful in different situations, and a company can even adopt more than one model, as each one has different characteristics and uses.

How to do it?

The first step to making a organization chart is to identify the company's needs and which model is appropriate.

Let's say you need to draw up a hierarchical chart To present those responsible for each position in the company, the ideal is to create a vertical model.

First, list all positions or departments at the hierarchical level and assign the name of the responsible professional.

See an example below.

President;
Director(s);
Manager;
Leader, supervisor, coordinator;
Session managers;
And so on…

Positions or professionals with the same level of hierarchy must be placed on the same line.

One tip for identifying the hierarchical level is through salary; normally, those who have more administrative responsibility receive more.

The person in charge of mechanics, stock and production have the same hierarchical level and autonomy, so they must be positioned in the same line of the structure.

Another example, the HR supervisor, commercial supervisor and finance supervisor also occupy the same position.

To create an organizational chart correctly, you need to know the professionals, positions, functions, salaries, who reports to whom, who has greater decision-making power, among other information.

Tools

There are currently many tools; apps and software that allow you to create an organizational chart, for example, Word, Excel and Canva.

In addition to being easy to use, most are free or have simpler alternatives at no cost.

Another great advantage is that in these tools we usually find ready-made templates, just edit according to the company's information and needs.

With a simple Google search, we also find many free templates to download and edit.

After you finish your chart, be sure to review the information with the people involved in your company to make sure everything is correct.

Other than that, it should also be updated frequently as the company grows and changes occur.

Conclusion

THE organization chart It is an important tool in the company and can be used to clearly and dynamically organize the structure of an organization.

Furthermore, it also serves to optimize internal communication, helping new employees to understand and learn about the company's hierarchy.

Finally, it is worth saying that it can motivate professionals and even increase and improve productivity.

This is because, with the tool, the employee understands their role in the team and the importance of mutual collaboration for the company to develop.

Nara Sampaio March 3, 2023

Business