Visualize Organizational Structures
Company organization charts are designed to clearly and transparently depict organizational structures, hierarchies, and relationships. Here you will learn what an organization chart is, what types of organization charts there are, what data is relevant for visualizing a company, and how to create a professional organization chart.
Content
- What Is an Organizational Chart?
- What Are the Different Types of Organizational Charts?
- What Contents Does a Good Organization Chart Contain?
- Why Should Companies Work with Organizational Charts?
- Using Word, Excel, or PowerPoint? Better not!
- Examples of Professional Organizational Charts
What Is an Organizational Chart?
The word “organization chart” is a graphical representation of the structure of an organization. Specifically, it is the visualization of roles, responsibilities, hierarchies, and reporting lines within companies. As early as 1855, the manager Daniel McCallum created the first modern organizational chart, which referred to the New York and Erie Railroad.
Until the 1920s, organizational charts were mainly used in engineering. However, it did not take long for them to become established in the business world and human resources management. Today, it is impossible to imagine businesses without them. In the future, organizational charts will increasingly have to reflect flexible structures that are constantly changing due to agile working methods. Companies are also increasingly interested in simulating potential organizational structures and workflows in organizational charts and weighing them against each other. Only when this is possible do organizations fully exploit their potential, which lies in the combination of flexible organizational design and data-supported future planning.
What Are the Different Types of Organizational Charts?
An organization chart is always a vertical or horizontal representation of the company structure. Visual stylistic devices such as boxes, arrows, and lines make connections and relationships in the company visible. Generally, there are three types of organizational charts.
The Hierarchical Organization Chart
In the hierarchical organization chart, one person or group is at the top. All other elements represented have less authority or power. Due to the visual representation from top to bottom, this organization chart variant is similar to a pyramid.
The Flat Organization Chart
The flat organization chart is sometimes also called a horizontal organization chart. It has few or no middle management levels and usually consists only of the areas of managers and employees. It is often the case that the latter is given an exceptionally high level of responsibility in the company. For example, they are also directly involved in important strategic decisions.
The Matrix Organization Chart
The matrix organizational chart is always used when employees have more than one superior. For example, a company may have a team of programmers assigned to a single senior programmer. At the same time, each works on projects for individual business units within the company. These are usually led by a line manager or project manager, so the programmers report to at least two managers.
When considering what type of org chart your business needs, the type of organizational structure must be taken into account. For example, there are person hierarchies, job hierarchies, department hierarchies, and other forms of company organization. Therefore, an agile representation is becoming increasingly important, and the time dimension must also be planned for more and more. The question is: what does my organizational structure look like yesterday, today, and tomorrow? The latter, in turn, requires the ability, as mentioned above, to simulate.
More on the Topic?
How has the way the org chart is used changed over the years? Learn more in our blog post “The Evolution of the Organigram”!
To the blog
What Contents Does a Good Organizational Chart Contain?
In addition to the data on the structure of the organization, the contents of an organizational chart differ individually depending on the company. By default, the organization chart includes name, function, and often contact information such as phone numbers and email addresses. Depending on the company’s size, photos of employees may also be part of the organizational chart. Particular task profiles such as first aiders and data or fire protection officers, as well as special absences, for example, due to parental leave, can also be shown in the organization chart. In addition, information on individual employees’ birthdays, company affiliations, or hobbies may also be included – depending on whether it makes sense and adds value. The more structured data is represented in the organization chart, the more profitable it will be for the company. Nevertheless, it should remain clear and comprehensible.
Why Should Companies Work with Organizational Charts?
Overview of the current state
Organizational charts help companies to visualize, analyze and permanently optimize themselves. In this context, they contribute significantly to a better understanding of the current state
Secured Governance
If responsibilities and reporting lines are transparent, governance requirements – especially those resulting from rating standards such as ESG (“Environmental, Social, Governance”) – are reliably met.
Better planning
The visualization and analysis of the current state reveals the need for action at an early stage and simplifies the planning of resources and personnel.
Bringing potential to life
The visualization of HR and organizational data helps to identify and leverage previously undiscovered potential. In this way, companies become more efficient and secure their competitiveness.
Positive influence on communication
An organizational chart visualizes structures, responsibilities and development opportunities. This high level of transparency in turn has a positive effect on communication within the company.
Using Word, Excel, or PowerPoint? Better not!
Before the implementation comes the strategy! This means you first need to consider the purpose of your company’s organizational chart. In the past, organization charts were primarily intended to show hierarchies, but today they should serve much more for visual HR control. Of course, simple variants of organizational charts can be created with Word or Excel.
However, these quickly become outdated because they are not linked to data sources. The trick is to automatically incorporate updates in the master data into the organizational chart. Anything else will increase manual effort. This may still be feasible in smaller organizations, but it becomes an avoidable Herculean task in larger companies.
With the help of special software solutions, organizational charts can be created and maintained much more easily and quickly. The advantages of organizational chart software such as Ingentis org.manager are apparent:
1.
You can save time
Updates in the master data are automatically added to the organization chart. The manual effort is nearly zero.
2.
The org chart is always up to date
Outdated organization charts are a thing of the past. Automatic updates result directly from changes in master data. The organization chart is directly linked to data sources such as HR systems.
3.
The data quality is significantly higher
Manual modifications are often not only time-consuming, but also error-prone. The use of professional software significantly increases the overall data quality.
4.
You can share content
The organization chart can be easily shared with other employees. Thus, export as PDF and exchange via Inter- and Intranet with authorized colleagues is possible.
5.
You will be informed in good time
Automated email reports point out grievances or need for action.
6.
Data protection is a top priority
Sophisticated rights concepts and access protection allow administrators to determine which employees need which information and access for their work.
7.
Analyze the current state
Well-maintained and equipped with various visualization options such as dashboards, charts, and Big Data graphics, the organization chart is a valuable basis for HR controlling and people analytics.
8.
Design target states
Simulations and re-organizations are no longer a problem with innovative software solutions
Examples of Professional Organizational Charts
Looking for an Org Chart Solution?
In our practical guide on the topic “Power Tool Org Chart” you will learn everything you need to know about the right implementation of org chart software.
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