An organization chart is a graphical presentation of the organizational structure of organization. Organization chart in particular illustrates the dependencies between functional units in organization, which may be, for example, a single workstation or group of posts separated due to their functions. Put simply an organization chart shows the organizational structure model of company.
In connection with the two basic models of management, you can also highlight the two main models of organizational structures. Mechanistic model of management correspond to the hierarchical organizational structure, and organic management model has organic structure. In addition, we can highlight the third intermediate type of organizational structures with both characteristics of hierarchical and organic structure.
Organizational chart types
- linear structure - the simplest organizational structure most commonly used in small organizations, based on the principle of the unity of the management. Characterized by centralization of power and a clear chain of command. Teams of people are built around tasks, rather than the common functions. Functional ties coincide with business goals.
- functional structure - one of the types of organizational structure characterized by the existence of functional departments led by professionals and a broken principle of unity of the management. Members of the organization are subordinate to both functional managers and management officials. A major flaw of this structure is the difficulty in separation of powers of the individual functional managers, which can lead to conflicts,
- linear-staff structure - is a type of structure that combines the advantages of a linear and functional structures. Is based on staff ties as in a linear structure, while at the same time allows for dependency on functional managers for problem solving. In practice, this is the most common hierarchical structure.
- divisional structure - based on divided internal units of the organization with large autonomy, leading to a decentralization of power. This can lead to conflicts between units and hinder coordination. Nevertheless, this type of structure is widely used in large business organizations
- Matrix structure - a characteristic feature of this structure is the abandonment of the principle of the unity of management. Accepts the principle of a dual-manager subordination, which causes that the chart is similar to a mathematical matrix with columns and rows. Double subordination can cause confusion and conflicts.
- project structure - is a development of the existing structures with the ability to create specific teams and task forces operating just over a period of time in order to carry out certain projects. These teams may consist either of the employees of your organization, as well as specialists from outside,
- network structure - appeared in connection with the development of cooperation between organizations, joint ventures, strategic alliances, etc. The essence of the network is that independent companies interconnected using modern information technologies create each time a different configuration. Any such configuration is called a virtual company. Due to the changing configurations, it is difficult to create an organization chart of the network structure.
The above-mentioned are the most commonly used organizational charts are arranged vertically. Besides, there are also other layout options for organizational charts.
- Allen, T. H. (1976). Communication Networks: The Hidden Organizational Chart. Personnel Administrator, 21(6), 31-35.