Organizational chart what is

Try clicking on our org chart templates and make it your own. For a truly dynamic experience , Lucidchart lets you share and embed org charts on your own site.

When you share a chart with others, you can also set permissions so people can comment on the doc or collaborate with you in real-time. With drag-and-drop shapes, real-time collaboration and advanced sharing features, Lucidchart makes it easy to create your own org chart. Product suite Product suite See and build the future with a powerful visual collaboration suite. Product suite overview The intelligent diagramming solution to help teams turn complexity into clarity.

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Optimize organizations Create custom org charts to fit your business. Visualize technical systems Gain visibility into your existing technology. Replace Visio Diagram, share, and innovate faster with Lucidchart. Resources Helpful insights to get the most out of Lucidchart. Learning campus. Case studies. What is an Organizational Chart. What is an Organizational Chart What do you want to do with organization charts? I want to learn more about organization charts.

I want to create my own organization chart on Lucidchart. I want to create an organization chart from a template that is already made. Create an organization chart. History In , railway general superintendent Daniel McCallum designed what is thought to be the first modern organizational chart.

Types of organizational charts What is an organizational chart's best format? Pros and cons of different organization types The types of organizations reflected in these chart types have advantages and disadvantages. In a nutshell: In a hierarchical, vertical, top-down organization , lines of authority and communication should be clear. Uses of org charts What is the best use for an organizational chart? You can use org charts for: Organizational and supervisory communication , such as helping employees know who reports to whom, or helping people get to know each other across the organization.

Resource planning , such as reducing inefficiencies by rearranging roles. Getting more visual with organizational charts There are few rules with org charts, so any visual elements that help to communicate are fair game.

Using photos can help people get to know each and connect names and faces. Also a vertical arrangement, a divisional structure most often divides work and employees by output, although a divisional structure could be divided by another variable such as market or region.

For example, a business that sells men's, women's and children's clothing through retail, e-commerce and catalog sales in the Northeast, Southeast and Southwest could be using a divisional structure in one of three ways:. This type of structure is helpful when the product base expands in quantity or complexity.

But when competition among divisions becomes significant, the organization is not adapting quickly enough, or when economies of scale are lacking, the organization may require a more sophisticated matrix structure. A matrix structure combines the functional and divisional structures to create a dual-command situation.

In a matrix structure, an employee reports to two managers who are jointly responsible for the employee's performance. Typically, one manager works in an administrative function, such as finance, HR, information technology, sales or marketing, and the other works in a business unit related to a product, service, customer or geography.

These disadvantages can be exacerbated if the matrix goes beyond two-dimensional e. Matrix structures are common in heavily project-driven organizations, such as construction companies. These structures have grown out of project structures in which employees from different functions formed teams until completing a project, and then reverted to their own functions.

In a matrix organization, each project manager reports directly to the vice president and the general manager. Each project is, in essence, a mini profit center, and therefore, general managers usually make business decisions. The matrix-structured organization also provides greater visibility, stronger governance and more control in large, complex companies.

It is also well suited for development of business areas and coordination of complex processes with strong dependencies. Matrix structures pose difficult challenges for professionals charged with ensuring equity and fairness across the organization. Managers working in matrix structures should be prepared to intervene via communication and training if the structure compromises these objectives. Furthermore, leadership should monitor relationships between managers who share direct reports.

These relationships between an employee's managers are crucial to the success of a matrix structure. Open boundary structures hollow, modular virtual and learning. More recent trends in structural forms remove the traditional boundaries of an organization. Typical internal and external barriers and organizational boxes are eliminated, and all organizational units are effectively and flexibly connected.

Teams replace departments, and the organization and suppliers work as closely together as parts of one company. The hierarchy is flat; status and rank are minimal. Everyone—including top management, managers and employees—participates in the decision-making process. The use of degree feedback performance appraisals is common as well. Boundary-less organizational structures can be created in varied forms, including hollow, modular and virtual organizations.

Hollow organizations. Hollow structures divide work and employees by core and noncore competencies. Hollow structures are an outsourcing model in which the organization maintains its core processes internally but outsources noncore processes. Hollow structures are most effective when the industry is price competitive and choices for outsourcing exist.

An example of a hollow structure is a sports organization that has its HR functions e. Modular organizations. Modular structures differ from hollow organizations in that components of a product are outsourced.

Modular structures may keep a core part of the product in-house and outsource noncore portions of the product. Networks are added or subtracted as needs change. For a modular structure to be an option, the product must be able to be broken into chunks. For example, computer manufacturer Dell buys parts from various suppliers and assembles them at one central location. Suppliers at one end and customers at the other become part of the organization; the organization shares information and innovations with all.

Customization of products and services results from flexibility, creativity, teamwork and responsiveness. Business decisions are made at corporate, divisional, project and individual team member levels. Disadvantages include concerns about the actions of suppliers outside the control of the core management company. Risk occurs if the partner organization removes itself form the quality check on the end product or if the outsourced organization uses a second outsourced organization.

Examples of supplier concerns include the following:. Virtual organizations. A virtual organization sometimes called a network structure is cooperation among companies, institutions or individuals delivering a product or service under a common business understanding. Organizations form partnerships with others—often competitors—that complement each other.

The collaborating units present themselves as a unified organization. Virtual structures are collaborative and created to respond to an exceptional and often temporary marketing opportunity. An example of a virtual structure is an environmental conservancy in which multiple organizations supply a virtual organization with employees to save, for example, a historic site, possibly with the intent of economic gain for the partners. Understanding the organizational environment is crucial in open boundary models.

For example, some industries cannot outsource noncore processes due to government regulation. For example, health insurance organizations may be unable to outsource Medicare processes. Or, in some cases, outsourcing may have to be negotiated with a union. The key to effective boundary-less organizations is placing adaptable employees at all levels.

Management must give up traditional autocratic control to coach employees toward creativity and the achievement of organizational goals. Employees must apply initiative and creativity to benefit the organization, and reward systems should recognize such employees. Learning organizations. A learning organization is one whose design actively seeks to acquire knowledge and change behavior as a result of the newly acquired knowledge. In learning organizations, experimenting, learning new things, and reflecting on new knowledge are the norms.

At the same time, there are many procedures and systems in place that facilitate learning at all organization levels. Organizations typically mature in a consistent and predictable manner. As they move through various stages of growth, they must address various problems. This process creates the need for different structures, management skills and priorities. The beginning stage of development is characterized by an inconsistent growth rate, a simple structure and informal systems.

At this stage the organization is typically highly centralized. The expansion stage is evidenced by rapid, positive growth and the emergence of formal systems. Organizations at this stage typically focus on centralization with limited delegation. The consolidation stage is characterized by slower growth, departmentalization, formalized systems and moderate centralization. The diversification stage occurs when older, larger organizations experience rapid growth, bureaucracy and decentralization.

An organizational chart is a visual chart that represents the structure of a company. An up-to-date organization chart template serves several important functions for your organization.

This infographic highlights 5 key benefits. The short answer is yes, absolutely. When organizations are just getting started, or fairly small, there is a tendency to share the load across team members. The vertical organizational chart template, or hierarchical chart, is the traditional organizational chart we see in many organizations.

The layout positions the CEO at the very top, with her direct reports below her, their reports below them, and so on. The goal of a vertical organizational chart is to present the reporting relationships between employees. This vertical organizational chart is helpful for employees to understand who they report to, who their peers report to, and the types of responsibilities every individual carries.

Although the layout itself is minimalist, the shapes and colors bring life to the design. It looks professional, incorporates branded design, and provides something a bit more engaging for employees. You can also use illustrated icons to differentiate between departmental organizational chart designs. For a more modern look and feel, take a look at this alternate take on a healthcare organizational chart template. It incorporates a digitized background design and a flat color palette.

You can use lines and nodes for a typical layout. Or like this vertical organizational chart template, you can use a legend and a varied color palette to indicate the reporting structure. An organizational chart can also be more than a breakdown of reporting relationships. This organizational chart includes contact information for individual staff. This is especially helpful for new employees or when communicating across departments.

This is a memorable way to show the connections between departments and team members, and it makes a statement. It can provide you with the style and color inspiration you need to get started. Learn more: Venngage for Healthcare Organizations. Plotting these types of roles in a business organizational chart is essential — it indicates where these roles fall in terms of hierarchy, who they answer to, and what their responsibilities are.

This is often referred to as a functional organizational chart. This vertical Smart corporate structure chart uses dynamic colors to differentiate the teams and their reports.

This extreme vertical format works for a smaller corporate structure. Or you can use this template for departments within a larger business organizational chart. A Smart organization chart template can be easily customized in the Venngage editor. Click on the sections you want to add.

The items will be duplicated so you can make the edits you want. Add more text and the shape automatically resizes to fit. You can see that in this template, the organizational chart is broken down by function.

So the VP of marketing oversees the marketing department. Below the VP of marketing, you find the marketing director, the marketing manager, the marketing lead, and so on. This applies to sales, infrastructure, and technology across the corporate structure chart.

Try applying a unique color for each department or function. A traditional marketing organizational structure is broken down by departments. You would have teams entirely dedicated to areas like branding, communications, and digital. With the use of a vibrant color palette, you can clearly identify each department, and who belongs in each.

This blue functional organizational chart template is broken down in a similar way to previous templates. The layout is just set to landscape and reads from left to right. Now, with the rise of remote work and completely remote employee onboarding, we may not always share an office or break room with fellow co-workers.

Using headshots in a corporate structure chart is a simple way to help folks get acquainted. Hubspot gave a presentation on creating agile teams. They shared a breakdown of how their powerhouse marketing department is structured. This is what a functional organizational chart can look like within a department.

The functions are now teams and channels. Your own organizational chart design will probably look different since it depends on the types of channels your marketing team is divided into. This type of organizational structure applies to larger organizations with divisions that are geographical, product-focused, industry-focused, market-focused or anything along those lines. They operate independently of one another and have all the same functions.

The horizontal organizational chart, or flat organizational chart, is for organizations with little to no middle management or supervisory roles. Take a look at the below template. Flat organizational structures can share the same layout as vertical organizational structures. But there are fewer executive and managerial levels.

The above horizontal organizational chart template also uses a landscape orientation. This helps to emphasize the lack of hierarchical tiers and the extended role of management. While just a design choice, it communicates how the organization is structured at a glance. They include a few quips as well. There is a clear level of camaraderie and togetherness that they aspire to. Rather than just a flat organizational structure with minimal hierarchy, Valve aspires for a completely collaborative organization with no hierarchy at all.

Within a horizontal organizational structure, managers will have a higher set of responsibilities, and more direct reports than a typical manager. Github has a lean marketing organizational structure. The VP oversees many areas, but they are not layered with upper and middle management. Instead, the teams are small and collaborative.

This lean marketing organizational chart design demonstrates that. Reduce the number of tiers and group teams together in the way that makes the most sense.