What is an organizational chart and why is it important?
Organizational chart corporate business hierarchy ,people structure, character cartoon business people conceptual vector illustration.

So you have learned more about topics to do with management, administration, organizations, and bureaucracy. Now what are organizational charts and why is this important to the functioning of the organization? An organizational chart is a diagram that shows a company’s internal structure, representing roles of employees, different responsibilities, and departments showing relationships between individuals and departments within an entity. Organizational charts are also mostly referred to as “org charts” or “organization charts.” Four main organizational charts include Functional Top-Down, Flat, Divisional, and Matrix.

What is organizational chart and its types?

There are three main types of org charts: hierarchical, matrix, and flat. These are very important because they ensure an efficient flow of information in an organization and such as helping employees know who reports and helping people get to know each other across the organization.

It sometimes includes employee photos showing their respective roles and duties, including responsibilities that can help a lot and open channels for allowing good communication among people to connect faces and names. These Organizational charts, named Hierarchical, Matrix, Divisional and Flat charts are the most common 4 types. A hierarchy chart is where mainly only one group or person is at the top, and below him is others having less power are beneath, hence having the shape of a pyramid.

What is an organizational chart and why is it important?

These Organizational charts clearly outline and show the hierarchy of jobs, roles, and employees within an organization and indicate the relationships shared. It helps these employees to easily understand who to report to, define responsibilities, procedure, and duties, and lastly ensure that managers are properly delegating jobs. Further, they task junior employees and responsibilities amongst their team for more quick delivery and efficiency in the organization. Hence it’s not easy to select what is the organizational chart’s best format.

An organization chart is good for an organization depending on the type of organization, business, or entity. But if you want to choose and you’re struggling to find a good organizational chart, scroll below for the most common organizational chart format. There are three main types of organizational charts in the world, namely:  hierarchical, matrix, and flat.

Types of organizational charts

What are the 4 types of organizational charts? There are four main types of organization charts: Hierarchical, matrix, Divisional and Flat. Hierarchical Org Chart: These are the most common 4 types of organizational charts which include:

*Hierarchical organizational structure

1. Hierarchical Org Chart: This has been one of the most common types of organizational chart world used by big institutions in the world and government. Its sometimes referred to as a Hierarchy Chart and deals with having one group or person at the top, running affairs, and delegating duties, and responsibilities to lower management. People with less power are beneath them, and get instructions from leaders in charge. Sometimes these are public administrators. Hence why one of the main characteristics is that it has a feature and the shape of a pyramid.

The hierarchical chart is similar to a monarchy with a king at the top, giving directives and instructions. The only difference is this is an organization. Hierarchy org charts, ensure members typically communicate effectively with the person they report to effectively execute their duties and responsibilities for anyone who reports directly to them.

*Matrix organizational structure

2. Matrix Org Chart:  This type of structure has a characteristic where employees and individuals have more than one manager supervising them and delegating duties. For example, an organization could have a team of programmers or graphic designers who all report to the head manager of ICT or the department in charge of science and technology.

These people could also be working on other projects that are likely headed by a separate project manager. In this case, a matrix organizational structure is defined as a type of structure in a workplace in which employees report to two or more managers rather than one manager overseeing every aspect of a project. Another example is that an employee may have one primary manager they report to as well as one or more project managers they work under supervising them effectively.

*Flat organizational structure

3. Flat Org Chart: This type is sometimes referred to as a Horizontal Org Chart. It has little or no levels of middle management. It typically consists of two levels:  the top administrators and the workers. In companies like this, the workers have more responsibility and are more directly involved in decision-making. The flat type organizational structure also called the self-managed type. It only has a few levels of management between general staff and managers. In other words, you would probably see a large number of employees or interns supervised by every single executive.

*Divisional organizational structure

4. Division chart: The divisional structure is a type of organizational structure where groups of people in the organization, each organizational function into a division. Each division contains all the necessary resources to work either internationally or remotely It functions to provide the needed support that a product line or geography department (for example, its own finance team, IT management, and marketing departments)