How To Create A Company Org Chart (Organizational Chart)
Types of organizational charts
To fit their culture, small businesses can choose from a variety of organizational chart designs. The pyramid is the first type of org chart that businesses frequently use, and it takes the most common form. Some businesses are now choosing a less conventional structure that prioritizes collaboration and connected departments The most typical formats used by businesses to create their organizational charts are listed below:
Pyramid
Organizational charts with this traditional hierarchical top-down structure are most prevalent. It places the organization’s leader at the top with all other employees listed in descending order. You can quickly see the management hierarchy in a pyramid organizational chart, from senior to mid-level leaders to their reports.
Product or Divisional Structure
Instead of using leadership tiers, an organizational chart may be set up by divisions. This graph looks like a table with boxes denoting different product divisions. Boxes for subcategories form a column underneath the main divisions.
Matrix
Similar to the product structure, but with more complex columns and rows within divisions, this type of organizational chart works. Employees who report to various team leads across the organization can be displayed in a matrix.
Functional
This chart is grouped by departments. The jobs are further organized using a pyramidal structure, starting with the department leader and going all the way down to the individual employees.
Flipped
A flipped organizational chart moves leadership from left to right rather than top-down. Another possibility for this kind of diagram is an upside-down chart that figuratively flips the pyramid structure. The senior leadership is at the bottom of an upside-down organizational chart, with all other employees at the top.
Round
This method of organizing an organizational chart starts with the inside circle, where the highest level position is located, and moves to outer rings of descending positions. A round organizational chart can be used to emphasize a collaborative culture where many divisions work together to achieve the company’s primary objective.
Holacracy
In holacracies, daily tasks known as accountabilities are represented by circles and are further divided into roles. Roles in this model are adaptable as new or modified accountabilities are added. The purpose of this more modern org chart structure is to be adaptable to changes in the workplace.
What is an organizational chart?
An organizational chart, also known as an org chart, shows how a company’s personnel are organized. An org chart is a visual representation of how leadership and collaboration are distributed within a company. Businesses of all sizes use organizational charts to display the top-down management hierarchy or, more fluidly, how teams or departments connect across the organization.
Why is it important for a small business to have an organizational chart?
Organizational charts date back to the mid-1800s. One of the most crucial business reference documents once began as a complex drawing of each division of the New York and Erie railway system.
Management and staff needed a way to keep track of numerous reporting relationships and job responsibilities once businesses began extending business operations into the modern industrial system. The organizational chart is still used by both large and small businesses even though new styles and formats have emerged to represent contemporary business models.
Any employee or someone outside the company can use an org chart in the following ways:
How to create an organizational chart for a small business
The steps below should be followed to create an organizational chart for your small business:
1. Decide what org chart style and format works best for your company
Choose the most effective way to visually represent the flow of leadership and departments in your organization while keeping in mind your company culture. You might just want to display your small business’s hierarchy using a classic pyramid model, or you might want to highlight your teamwork by using a round organizational chart.
2. Find the right digital tools to create a draft of your org chart
Using software or apps, you can digitally create an organizational chart for a small business. Most programs make it simple to enter information and upload a photo to create a profile for each employee entry. Your company may already have the right to use a piece of software that will enable you to create an organizational chart, or you can decide to purchase one. It may be useful to experiment with the setup that works best for your organization using some free org chart creation software.
3. Enter information to complete your org chart
Create entries for each employee after selecting the chart type and the software. Decide how much info you will include. As an illustration, you might choose to add a job description and several contacts for each employee. Some businesses choose to list each employee’s name, title, and email address only briefly.
4. Save and share your org chart
Review the chart with other employees of your small business once the final draft is complete. Once you’ve determined that the format and content are appropriate for your company, save a copy in a location that all employees can access. This could be on a company server’s shared drive for documents or online. Make sure HR can alter the organizational chart as necessary.
Example of a Small Business Organizational Chart
All personnel should be listed by name and position on an organizational chart. If you’d like, you can also include images, your contact information, and other details pertinent to each position. Its helpful to at least include a company email address.
In a conventional pyramid structure, the names and positions should be organized as follows, with each leader beginning a new level of the hierarchy:
CEO: Bill Braff
COO: Yolanda Powell – CFO: Sanjay Agarwal
Sally Bright, the sales manager, Joshua Rivers, the sales coordinator, Michael Corbin, and Dori Chambers, the sales reps
Jenna McAllister is the office manager. Braden Tyrell is the office assistant. Rebecca Moss is the receptionist.
Hannah Frost is the content lead, Sylvester Park is the marketing manager, Andrew Miller is the marketing coordinator, and Gina Woods is the graphic designer.
HR Manager: Toby Malone
FAQ
What is the best organizational structure for a small business?
This type of organizational structure, known as divisional or product reporting, typically works best for large businesses with numerous products and sales channels. This is so that each unique division can manage sales, IT, marketing, and other operations using its own resources.
What are the 4 types of organizational chart?
An organizational chart for a small business shows your company’s structure visually. It outlines job responsibilities and shows who employees report to within the organization. There are many reasons why you should make one for your business, and there are many different types to choose from!
