Organization Chart Concept – What is it for, uses, types

We explain what an organization chart is and what this graphic representation is for. Also, the types of organization chart that exist.

Organization chart
The organization chart allows you to get a quick idea of ​​how a company is organized.

What is an organization chart?

The organization chart is a graphical representation of the skeleton of an organization, showing the hierarchical positions. The organization chart allows you to get a quick idea of ​​how a company, cooperative or non-profit organization is organized, whatever the type of organization the organization chart is valid.

If at the time of designing the organization chart it is not carried out in a faithful way, it could generate confusion regarding decision-making in the organization, authorizations and similar issues.

What is the organization chart for?

Organization chart
An organization chart is usually done at the same time that an organization is born.

An organization chart fulfills two main functions:

First of all, it is informative, since it will serve the new members of the company or also the older ones who have forgotten a position.

Second, it is a tool for organizational analysis, since as an analysis instrument it will serve to detect failures in the structure, in an organization chart we clearly see each unit or department and the relationship with other units. This being the case, if something is malfunctioning, we can study the graph to understand and thus solve a situation.

It is very easy to create an organization chart, generally this is done at the same time that an organization is born To clarify the hierarchical positions and the organization of the company, when an organization has been created and does not have an organization chart or when the organization is created, it already has its organization chart but needs changes or readjustments. It is important that this representation of the company is kept up to date, it cannot be static.

Organizational chart types

There are three types of organization charts:

  • Analytical organization charts. They are specific, provide detailed information, and can complement other sources of information.
  • General organization charts. This type of organization shows only the most important units, they are called by that name because they are the most common.
  • Supplementary organization charts. They are those that are used to analyze a particular department and serve as a complement to those of the first type.
  • According to its geometric shape. They may be: vertical (The most common), horizontal (starting from the left as the head), scalars (no boxes are used for names or positions) and concentric or circular (The highest hierarchical ranks are in the center of the circle and as they go down the hierarchy, they move away from it).
  • According to its nature. They may be: micromanaging (from a single organization), macro-administrative (more than one organization) or mesoadministrative (one or more organizations from the same activity sector are taken into account).
  • According to its purpose. They are classified into four other types: informative (they aim to be available to the public), analytical (analyzes certain characteristics of an organization), formal (it is approved by a higher body in the institution) and informal (Unlike the previous type, this one is not approved by a directory).
  • According to its scope. There are two types of organization charts: general or specific.
  • According to its content. We have three types of organization charts: integral (represent the relationships between units), functional (include the main functions of each department) and of position, position and units (They state the positions held and the number of employees required by positions).