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Org Charts | How to Fuel Growth with Company Structures

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In today's complex business world, organisational charts are an essential tool for modern enterprises. These visual maps, often called "org charts", go beyond simply showing who reports to whom. They offer a clear picture of your team's structure, responsibilities, and how everyone connects.

Think of it this way: imagine navigating a bustling railway station without a map. That's what an organisation without an org chart can feel like. Created in 1854 by Daniel McCallum to manage railway operations, org charts have evolved to be crucial for businesses of all sizes.



What is an Org Chart?

Imagine a map, but instead of showing streets and buildings, it reveals the inner workings of an organization. This map is called an org chart, and it uses boxes and lines to illustrate who works with whom and who reports to whom. Think of the boxes as people, with their roles and responsibilities written inside. The higher the box, the more authority and decision-making power it represents, kind of like a pyramid with the CEO at the top.

Why are org charts important? They act like cheat sheets, giving you a quick snapshot of how the organization is structured and who does what. Need to know who to contact for a specific task? Check the chart. Planning for future growth or changes? Analyze the chart to see what works and what doesn't. 

Types of Org Chart

Org charts come in three primary varieties: matrix, flat, and hierarchical. Depending on the organization's size, complexity, and culture, each style offers pros and cons of its own.

1. Hierarchical

The most popular kind of organizational chart, this one displays a distinct chain of command, with the president or CEO at the top and staff members answering to their managers below. The CEO is usually shown at the top of the pyramid, with staff members arranged below them according to seniority and reporting relationships.

2. Flat

The opposite of hierarchical organizational charts are flat ones. Employee autonomy and decision-making authority are greater in a horizontal organization, where there are few or no tiers of management between the top and the bottom. This kind of organization chart works well in companies with flexible, decentralized structures where teams or individuals make decisions according to their autonomy and area of competence. Start-ups and small businesses frequently use it. Yet, without a distinct chain of command, this kind of organizational chart can also make it difficult to juggle tasks.

3. Matrix

When staff members are accountable to many managers, frequently from distinct departments, they utilize this style of organizational chart. For tasks requiring knowledge from several fields, this can be helpful. It can assist in visualising the interactions between many teams, although it can be a little trickier to understand than a hierarchical chart.

Uses of Org Charts

Organizational charts can serve a number of functions, including the following:

  1. Assisting newly hired staff members in understanding the organisation's structure and reporting lines during onboarding and training. In their positions and responsibilities, this can make individuals feel more at ease and assured.
  2. Clarifying roles and responsibilities inside the company to improve communication between teams and departments. Better communication and cooperation between various stakeholders may result from this.
  3. Finding gaps in the existing organisational structure in order to plan for growth and succession. In the long run, this can help you be ready for changes and obstacles in the market or industry.
  4. Showcasing the organisation's structure to prospective clients or partners in order to draw in investors. This could show how reputable and professional the business is.
  5. The company's organisational design serves marketing aims by emphasizing its culture and principles. In addition to helping the business stand out from rivals, this can also help it attract its intended market.

Org Chart Features

Organisational charts are more engaging and instructive than plain diagrams because of a number of aspects. Let's take a look at some of its features:

  1. Elements of the organization are represented visually by boxes, lines, and colors. Boxes might, for instance, represent responsibilities or positions inside the company. The name, title, and contact details of the individual occupying the role are typically included. The reporting linkages between the positions or roles within the organization may be shown by lines. In addition to indicating whether a relationship is direct or indirect, solid or dotted, vertical or horizontal, etc., colors can also represent various organizational characteristics like culture, values, or strategy. Additionally, they could denote other job categories, including managers, employees, consultants, or service providers.
  2. Optional components, such as images, departmental colors, or connections to personal profiles, offer more information about each member of the staff. For instance, department colors might convey a culture or mood, images can convey appearance or emotion, and connections to individual profiles can convey interests or abilities.
  3. Interactive components, such as clickable links to employee profiles or HR system integration, which give consumers extra functionality and convenience. For instance, clickable components might let users get more details about every individual in the company without ever leaving the org chart interface. Users might be able to update their information automatically without requiring manual input, thanks to integration with HR systems.

Additional Tips

Organizational charts are dynamic documents that require ongoing maintenance after creation. They need to be maintained constantly to reflect the present reality of the organization. Here are some pointers for maintaining an effective and current organizational chart:

  • Use dedicated software: When creating org charts with dynamic updates and more sophisticated systems, think about utilizing specialised software.
  • Get Comments: Incorporate input from different organisational departments and levels to make sure the org chart is accurate and comprehensive. By doing this, you can lessen the chance of mistakes, omissions, or inconsistencies that could degrade the org chart's quality and utility.
  • Keep it updated: Examine and update the chart frequently to account for modifications to the organisation's structure.
  • Employ color strategically: To set apart departments or levels, use color sparingly and purposefully. Avoid overwhelming colors that detract from the information.
  • Include Key Information: In addition to position titles, you should think about adding important details like the names of the people holding each position, their contact details, and a succinct explanation of their roles and responsibilities. Larger companies or recent hires may find this to be of particular use.
  • Incorporate visuals: To improve visual appeal, think about including brand logos, icons, or pictures, but make sure they don't overpower the framework.

In conclusion, organisation charts are strong tools that can improve the way you see and run your business. They can support a number of goals like onboarding, communication, planning, marketing, and more. They can also assist you in defining and communicating your organisational structure, roles, and relationships. They can also contain additional aspects that make them more dynamic and instructive than straightforward diagrams, such as visual elements, important components, optional parts, and interactive features. To support organisational design and change management, they also require routine maintenance to reflect the organisation's current reality.

Organisational charts are included in Transformify's HRMS solution. Compared to other charts, TFY's are more interactive because you can click on any element to view additional details about each member of the organisation. Additionally, they interface with TFY's HR systems, allowing you to update your data automatically and without human input. Try Transformify now to discover how company structures and organisation charts may help drive your success.