Organizational Chart The organizational chart is an important element inside the organizational structure of an organization or company. It is often called an org chart or an organigrame and it’s basically a graphic diagram that shows the power relationships inside a company. It states who is the manager and his subordinates in a hierarchical and vertical structure. An the use of this chart is very useful for all employees because they can see in a very simple graphic what is their current position inside the company and their ranks according to their position.
An organizational chart is also used for showing the relationships between directors in various departments. For large companies like multinationals, these charts are very complicated and also large, so they are divided into smaller ones for each department within the organization.
Organizational charts can be divided into three categories: hierarchical charts, matrix charts and flat or horizontal charts. They are usually used by people in the HR or Human Resources department of companies in order keep track of what positions are filled inside the organization. It is also an important aspect debated with every employee who needs to understand that he fills a certain position inside the organizational chart and has certain responsibilities. It is also important for charts to be updated monthly in order to keep track with all the changes that can occur.
Organizational charts don’t show the inter-human relationships that develop inside a company. They only show the formal relationships. For example, a vertical char will not show the horizontal relationships that develop between departments and people from different departments. In reality, these relationships are very important because people from different departments have to talk and work together in order to get all projects done. Also, organizational schemes exclude customers, who are very important factors inside a company. How the company relates to them is also very crucial to the efficiency of an organization.