What is an Organization Chart?
Briefly, the chart is a chart that represents the organizational structure of a company. These organizational chart models will represent the hierarchical relationships or division of sectors and positions that exist in that organization.
The most important role of the organization chart is to make it clear to employees and stakeholders exactly where they are within the structure of the company and with which areas or people they relate directly.
Meaning of Components
Now that you have understood what it is, it pays to understand all the components that can appear in one. This will help you to understand the organizational structures that lie ahead and also to build the one of your company, if you are interested:
See the meanings of each item:
- Lines of Communication - are continuous lines that interconnect positions or areas of the company. This line indicates that there is a direct hierarchy between these departments
- Units of work, position or area - are the little boxes. In them you will write who is being represented
- Hierarchy - I will show how it works for each case when we present the organization chart models, but in general the hierarchy line works from top to bottom, from left to right or from the inside out.
- Horizontal Division of Labor - Charges or areas on a same line indicates that it has a similar hierarchical level.
If you are thinking of developing your company's organizational chart it is important that you know the major models that exist. Know that there is no right or wrong, what makes the most sense for your reality or taste will be correct.
1. Vertical, Classic or Functional Organization Chart
This is the most well-known format and they usually appear in searches on the Google and the like. It represents the company hierarchy in a clear way, since from top to bottom you have the main positions going up to the least important ones.
See that the arrows go from top to bottom (top - down). What differentiates the vertical from the functional organization chart is the type of name that appears in the boxes. If the areas appear, it is the classic vertical. If (as in our example) the functions appear, it will be the functional.
2. Horizontal Organogram
This type of organizational chart is identical to the vertical, the only difference is that instead of the most important positions hierarchically speaking, they are more to the left and as it grows to the right, one arrives at the positions and more operational areas
Note that in the horizontal organizational model, the arrows go from left to right.
3. Circular or Radial Organogram
In the circular organization hierarchy, the hierarchy is more divided and, although there is a logic of the areas that have more responsibility (more to the center) to those that have less (at the ends), it is tried to emphasize the work in group and proximity of the areas.
4. Linear Responsibility Organization (OLR)
Unlike the other types that I have shown so far, the Linear Responsibility Organization Chart (OLR) shows the relationship that exists between key activities or processes of the company with who is responsible for each one of them.
See that the legend helps in this differentiation of who will do what.
5. Matrix Organization Chart
This model is very useful for representing temporary units where more than one area will act. It is very common to be used in consultancies or companies that carry out major projects.
In the example given, the bulk and line areas are connected to all other areas. The name matrix organization chart is given by the similarity with the structure of a matrix.
6. To relax
Now that I've talked about the most important organizational chart models, there's a joke made with those from Amazon, Google, Facebook, Microsoft, Apple and Oracle. Each one shows, in a stereotyped way, how each of these companies works:
How to make an organization chart in Excel
If you want to do yours right now, you will find it easier than you think. Just use the Excel and some of its features. I'll show you step by step right now for you to create different organizational chart templates:
1. Insert SmartArt
To do this, go to the Insert tab, in the Illustrations group, the second button on the right:
When you click on this option opens the Smart Art window
2. Choose type
Just go to the hierarchy option and choose the one that interests you the most. In my case, I picked up the vertical organization chart. Note that when you choose the desired option, it automatically appears in Excel for you to use.
Here, you can edit what appears written inside the boxes or enable the Text Panel option (inside the extra Design tab).
Finally, if you want, still in the Design tab, you can modify the diagram's colors, font size, font colors and various other details to stay the way you want. In my case, in a few clicks I got this result
After that, you can leave it in Excel itself or copy and paste it to another file. If you do not understand the structure of Smart Art, take a picture of your screen and copy and paste to the other file.
3 Examples of Companies / Famous Organizations
Petrobras Organization Chart
Organization chart of the Central Bank of Brazil
I believe we have already gone through the most important, but there are still some final topics that you cannot forget:
- The paper accepts anything, so it is important that you have a very good knowledge of the company before designing your organization chart.
- The more summarized it is, the easier it will be to understand what he wants to pass on
- Use a tool to draw your organization chart (Excel is an excellent choice)
- There is no right or wrong, what makes the most sense for your reality is what is
And you already have the organizational chart template of your company created? Do you believe that it represents the reality of what you do or is it time to change? Comment below and get all your questions answered.