Organization Chart Meaning
What is Organization Chart:
An organization chart is a scheme where the organizational structure of a public entity, company or body is graphically represented. As such, the term organization chart is an acronym made up of the word "organization" and the element "-gram", which means' written ', graphic'.
The organization chart of a company graphically shows the hierarchies, relationships and sometimes even the functions of the departments, teams and people that work in the company.
In this sense, the organization chart is an informative and administrative tool, since it represents the departmental units, their distribution, powers, functions and competences, as well as information related to the relational attributions and hierarchical structures of the company. In a way, the organization chart also symbolizes the philosophical principles on which the company's organizational structure is based.
On the other hand, in the area of technology, the organization chart can be used to represent the flow of procedures and tasks in an industrial process.
Organizational chart types
- A vertical organization is known as the one whose hierarchical distribution is organized from the position that occupies the highest authority at the top, being that the departmental units are decreasing their rank as they descend in the plane.
- The horizontal organization chart shows branched distributions of its departmental units from left to right, with the extreme left being occupied by the position with the highest hierarchy. The departmental units are decreasing in their responsibilities as they move to the right.
- The mixed organization chart is one that combines the distribution of the departmental units of the vertical and horizontal organization charts.
- In the circular organization chart, the position with the highest hierarchy is represented in the center of the diagram, and the hierarchical powers decrease as the departmental branches move away from the center of the circle towards the extremes.
- The scalar organization chart is a representative scheme, similar to an inverted ladder, that uses the use of indents to show the hierarchical structure of a company. The greater the indentation, the lower the authority of the position, and vice versa.
- As a functional organization chart, it is called the one where the functions, competences and attributions of each departmental unit are specified. It is highly informative for training courses or for making a formal presentation on the structure and operation of the company.
How to make an organization chart
To make an organization chart you must be clear about what you want to represent. In companies with many employees it would not make sense to put all the people who work there but it would make sense to show the different departments and the relationships between them. Below is an example of a small business organization chart with its owner then connected to the manager and finances. Here it is seen that both the administrator and finances are at the same level reporting directly to the owner. The administrator, unlike finances, is in charge of 3 officials who report directly to him: