Organizational chart: See how to easily create the structure!

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

What is an organizational chart?

It is a chart 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.

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

The definition of a job is broad, based on different fundamentals such as function, task, responsibilities, position, etc.

This tool presents, in an organized manner, the positions held by each employee or the activities that must be performed, categorized by priority level, for example.

It serves to present different types of 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 being that the tree is organized by the oldest ancestor.

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

There are also cases where photographs are used, just as in family trees.

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 charts.

1. Vertical or classic organizational chart

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

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

Generally, at the top of business hierarchical chart The CEO, general manager, president, manager, etc. remain.

The following bars indicate 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.

That's because all the parts arranged in a organizational chart They are important for the development of the organization.

Typically, using colloquial language, it serves to show who has the most authority or administrative responsibility, and to demonstrate each person's role in the company in an organized manner.

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 hierarchical organization of positions is not the most significant factor.

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 for professionals to develop other skills and thus grow professionally.

3. Hierarchical circular or radial chart

In this alternative, hierarchy is not a prominent feature. At the center of the circle is the position with the greatest decision-making power.

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

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

It's a great tool for highlighting teamwork and reducing the gap between roles.

4. Linear Responsibility Chart (LRC)

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

Alternative models can be useful in different situations; in fact, a company may adopt more than one model, because each has different characteristics and uses.

How to do it?

The first step to making a organizational chart It's about identifying the company's needs and determining the appropriate model.

Let's say it's necessary to develop a hierarchical chart To present the people responsible for each position in the company, the ideal approach is to use a vertical model.

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

See below for an example.

President;
Director(s);
Manager;
Leader, supervisor, coordinator;
Those in charge of the session;
And so on…

Positions or professionals with the same hierarchical level should be placed on the same line.

One tip for identifying hierarchical levels is through salary; typically, those with more administrative responsibility receive more.

The person in charge of mechanics, inventory, and production has the same hierarchical level and autonomy; therefore, they should be positioned on the same line in the structure.

Another example: the HR supervisor, the sales supervisor, and the finance supervisor also hold the same position.

To create an organizational chart correctly, it is necessary to know the professionals, positions, functions, salaries, who reports to whom, who has the most decision-making power, among other information.

Tools

Currently, there are many tools, apps, and software programs available for creating organizational charts, such as Word and Excel. Canva.

In addition to being easy to use, most are free or have simpler, free alternatives.

Another great advantage is that these tools usually contain ready-made templates; you just need to edit them according to the company's information and needs.

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

After finalizing the chart, be sure to review the information with the people involved in the company to ensure everything is correct.

In addition, it should also be updated frequently as the company grows and changes occur.

Conclusion

THE organizational chart It is an important tool in a company and can be used to organize an organization's structure clearly and dynamically.

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

Finally, it's worth mentioning that it can motivate professionals and even increase and improve productivity.

This is because, with this tool, the employee understands their role in the team and the importance of mutual collaboration for the company's development.

Nara Sampaio

SEO writer, digital content creator, and virtual assistant. An introvert who found in writing a way to express herself and share knowledge!

March 3, 2023

Business