The organization chart shows the internal structure of an organization or company. In this guide, we share the details about the organizational structure of a company, various models of organizational charts, valuable tips, best practices and downloadable templates you can use according to your company structure and size.
The org chart templates that we have prepared are made to be downloaded freely in Microsoft Word format.
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The organizational chart is the detailed graphical representation of the mode of operation, based on the resources available to the company and on the vertical or horizontal subordination relations between the different entities that compose it. Entities can be compartments and individual positions, but HR must prepare a job description for each post. Organizational chart are often reffered as org charts or organigrams.
The organization chart reflects its organization, as its manager or founder conceived it, but it is not a document that remains unchanged. Depending on the needs and changes along the way, this may change.
The company manager will outline the organizational chart with the director of human resources and heads of departments. Then the HR department is tasked with bringing it to the attention of employees and implementing it.
This graphic scheme should take into account the business strategy and the human capital available to the company.
Moreover, given the variety of existing types of companies, the organization chart must accurately reflect the structure and type of your company. Therefore, we provide you with several organizational chart types, as follows.
Hierarchical organization chart is of the type of pyramid in which the person in charge has the highest level of authority and has subordinates divided into departments.
When building such an org chart structure, you start with the CEO/President at the top, then the executive team, and then the reporting lines. It is straightforward to understand who manages who, what the roles are, and how the hierarchy branches into teams or departments.
The benefits of vertically structured organizations are clear reporting lines, quick decision-making, better delegation, limited ambiguity, and increased efficiency. We can also mention that there are more promotion opportunities and tighter control.
As a disadvantage, we could highlight some drawbacks of hierarchal structures for managers: slower decisions making, increased bureaucracy, limited flexibility, and longer times to get things done.
Governments and large corporations are usually structured hierarchically. A large company that uses a vertical org chart is Amazon.
If you are looking for a template for an organizational chart, we believe this template is a great place to start. Please customize the structure according to your company, and make the most out of it.
This is probably the easiest or simplest org chart you can find and is ideal for small companies/business.
Download the Vertical organization chart tempate
The horizontal organization chart model - has a lateral structure, there are not too many middle-management positions, so it generates a sense of independence for employees.
Download the Horizontal organization chart tempate
The benefits of a horizontal org structure include transparency, low to no bureaucracy, improved communications, effective collaboration, better decision-making, and clarity across the organization.
The video game company Valve is an excellent example of an organization with a flat org structure.
Download the Flat organization chart tempate
Tip: If you want to know what are the most common types of organizational structures, check our in depth guide, so that you make the right decision when building yours.
The divisional structure is one of the most common org structures for business. This type of org structure groups employees based on product, service, customer, or geographic location.
Let's see what are the advantages of using this org structure within your organization:
Download the Divisional organization chart tempate
The matrix flowchart model is a hybrid between the vertical and horizontal org charts. It does not focus on levels of authority and hierarchy but communication and relationships. It is used in companies that carry out large projects, where employees from all departments work together for that project.
A popular American sportswear company Nike is using a matrix org chart.
Download the word model for the company's organization chart and modify it according to its departments, hierarchy, and structure.
Download the Matrix organization chart tempate
We have created a new matrix org chart that combines functional and divisional structures better. In this way, setting across different departments and projects will be more efficient, boost into-departmental collaboration, and gain extra flexibility. Note that such org structure has disadvantages, such as creating confusion about roles and responsibilities and increasing conflicts and overlapping work between departments.
Download the Matrix org chart tempate
A team-based organization chart is a visual representation of an organization's structure that emphasizes teams and collaboration over traditional hierarchies. In a team-based organization, individuals are grouped together based on shared team goals and responsibilities, and they work together to achieve those goals. Each team has its own leader who is responsible for guiding the team towards success, but overall, the focus is on empowering teams to make decisions and take ownership of their work. This approach can lead to increased productivity, better communication, and a more engaged workforce, as team members feel a sense of ownership and accountability for their work.
As an example, when looking for Software as a Service companies, you most commonly have 5 teams in their org chart: Technology, Product, Sales, Marketing, abd Finance.
Download the Team-based organization chart tempate
The free project organizational chart template showcases how it is used to distribute authority and responsibility within a project team.
Within this word template, we outline the project team members assigned to work on a particular project. It shows how individual project team members will interrelate with one another throughout the project lifecycle. By having such a project org chart, you clarify the collaborative links in a easy way, as they are very visual.
Keep in mind that this org chart is suitable for a small project. However, you can customize it according to your needs and industry. Additionally, the size and complexity of the project determine how simple or complex the organizational chart is.
Download the project organization chart template
Look no further if you want an org chart that can be edited directly within Excel. This Excel org chart template provides the following versions that you can choose according to your needs:
Download the Excel organization chart template
With LeaveBoard, once you embark your employees, you will have the essential elements of a flowchart organized in a simple, clear, and structured way in an Excel spreadsheet format. This table is constantly updated with the latest updates in your organization - changing roles. New teams/departments/locations created, different approval flows new hires or terminations.
We are aware that there are other types of organizational structures: Network structure, Divisional structure by geography or product line, Team based structure, or Functional org structures. LeaveBoard can handle all of them providing an overview of the human resources in your organization, allowing it to grow, evolve and change without any difficulty.
Depending on the state of your business, you can use the org chart in multiple ways.
Several computer tools are at your disposal to facilitate the design of this graphic document.
The most widely used medium remains the Microsoft Office suite, which has the advantages:
The drawback is that you must update it manually every time someone leaves or joins the company. Therefore, we recommend software that streamlines the org chart creation and update.
To make it easier to read and understand, the org chart should be clear and readable at first glance, so do not overload it with information.
The larger the structure, the less detailed the organization chart will be to limit the difficulty of reading and the risk of loss of meaning.
Also, in the case of a large company, a global view is useful. Still, it may be necessary also to design one for each of the departments making up the structure to facilitate understanding and readability. Therefore, we believe tabular org charts are easier to comprehend no matter how big your organization is.
Don’t forget to update your org chart regularly. You can reflect on the new roles you plan to add to your business or team, who you might get promoted, or who should leave due to poor performance. Keep in mind that if you have an up-to-date org chart, your workforce will always know whom they report to and where they fit in the overall structure.
Color codes: To differentiate teams/departments/geographies, you might use different color codes: i.e., red for sales, green for marketing, and blue for production. For open roles, you might also use different border types, such as dotted lines. Be creative; however, don’t forget to have a legend somewhere explaining the codes.
How to make an org chart in Microsoft Word?
Word is an excellent tool for creating an org chart for your business. Within Microsoft Word, the SmartArt function is what you need. Here are the steps to do so:
Tip: Within Microsoft Excel, you can insert SmartArt diagrams to create Org charts.
How to create an Org Chart in Google?
Google offers a great alternative to creating a free and easy org chart. Here are the steps to follow:
Tip: If you want to bring the org chart to Google docs, then open a new Google Doc, then click Insert > Chart > From Sheets > Select the sheet where you have your org chart, and then you’re ready to go.
Remember, with templates, you can only create an org chart that represents the present structure. If your business is constantly changing, with new hires, departures, role changes, constant switches within the reporting functions, consider approaching dynamic tools that facilitate your employee management and provide you a better perspective in real-time. Automate the boring part of updating org chart templates, and have the right employee data at any moment you need.
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