Organization Chart

The organization chart is a diagram that gives an outline of the company’s internal structure.

In large corporates, it is really important and useful to have a clear chart showing a clear chain of command. This includes roles like CEO, executive team, middle management, and various departments, each with defined responsibilities. However, these charts can vary based on industry needs and company structure.

For example, Tech companies often rely on flat or matrix structure, but manufacturing firms typically adopt hierarchical structure. But divisional structure is most used in healthcare and retail. Let’s read to know more about organization charts and types in this article.

What is Organizational Chart?

It is the most common visual depiction showing how the company is structured. It displays the various responsibilities, roles and relationships between the many individuals that reside in the company. As a matter of fact, the chart shows the structure of the company as a whole, or by various departments or units.

To explain better: In a company, each person has a title and a designated job or role that he or she is obligated to do. The role in the company demands the job responsibilities that are needed from the employee and has a status that might fall above or below other employee roles within the company. For illustrating each and every role and responsibilities in a company, every organization usually prepares the organizational chart that would display all the details directing how the company would move.

How to Create an Organizational Chart?

Organizational Chart gives a clear picture of the reporting relationships and hierarchy within an organization, helping employees understand their roles and responsibilities. To create an effective organizational chart, there must be some steps to follow:

Define the purpose of the Chart, whether it’s for internal communication, planning, or as a directory.
Gather information on employee roles, relationships, and any existing organizational structures to base your chart on.
Choose a format that best fits your organization’s structure and culture.
Use smart tools that offer templates and easy-to-use interfaces for creating professional-looking organizational charts.
Regular updating and monitoring of the organization chart will help to find any changes in structure and make sure it remains useful.

Types of Organizational Chart

There are various types of organizational charts, each suited to different organizational needs.

Type	Feature	Industry
Hierarchical Org Chart	Top-down structure where individuals are placed according to their ranking	Manufacturing Firms
Flat Org Chart	Show all individuals in same level	Non-profit organization and Startups
Matrix Org Chart	Useful where employees report to multiple managers.	Tech companies
Divisional Org Chart	Arrange to showcase different divisions within the organization.	Healthcare

The above table shows how organizational charts can vary based on the need and structure of the company.

Strategic Planning Through Organizational Chart

Organizational charts in short act as a personal directory or a planning tool, helping to visualize team structures and workflows. Not just this, it is often used as management tools to facilitate communication and clarify responsibilities, especially during organizational restructuring or implementing new processes.

To know more about organization chart, Eqvista can help you. Eqvista also offers a cap table application that can help you keep a good track and manage all the shares in your company. Check out the application & contact us today!

Interested in issuing & managing shares?

If you want to start issuing and managing shares, Try out our Eqvista App, it is free and all online!

GET STARTED