The main purpose of an organization chart is to show the hierarchical structure, or chain of command, within an organization. It is a useful management tool that helps organize the workplace. In general, the charts place the top official or department at the head of the chart, with others following below in levels.Know More
An organization chart, or org chart, visually divides any organization into different levels of authority. Each box in the chart depicts a department or position, with those on the same level being of equal rank. The chart illustrates relationships between departments and people within an organization. It makes it easy for people to comprehend the structure of an organization, especially a large one, and is common in any organization with over five members.
Most org charts are pyramid-shaped. For example, a large organization may have four directors reporting directly to one department head. In this case, the first level of the chart would depict the department head and the next level the four directors. Below the directors would be their subordinates.
Besides providing an easy-to-understand overview of an organization, org charts are useful when companies undergo major change or restructuring, as in the case of a merger. They are also useful when shifting resources or adjusting the structure of large teams.Learn more about Managing a Business
A functional organizational structure is one in which an organization is divided into different departments or functional work activities. Common functions include operations, accounting, marketing, information technology and human resources. A level of top managers typically oversees the work carried out in each functional area.Full Answer >
Matrix management is an organizational structure in which multiple reporting lines and superiors exist for an individual in the organization. The reporting lines are identified in a chart as either solid or dotted, implying a strong or weak reporting relationship.Full Answer >
Internal factors in an organization are factors that are within its control, such as the organization's culture, its management structure and internal communication. A positive organizational culture is vital for a growing organization because it impacts employee morale and the timely completion of projects.Full Answer >
Organizational restructuring is the process by which an organization changes its internal structure by revamping departments, ownership, or operations and processes. The purpose of restructuring is to make the organization more profitable and integrated. Restructuring is usually a result of a merger, lackluster profits or a change in overall goals.Full Answer >