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Aug 13, 2019 · 7 min read

Organizational Chart definition

Organizational chart templates are a vital visual representation of your company’s,

project’s or business unit’s internal structure. It’s a diagram that illustrates rank,

responsibility, including information flow in your company and paints a detailed picture

of the internal structure of a business. Org charts, like trees, spread out into

supplementary branches and leaves that define each individual’s role in a company.

Org charts have a variety of uses and can be structured in many different ways. They

might be used as a management tool, for planning purposes, or as a personal directory.

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Organizational Charts are also known as Organograms, Organogram Charts (sometimes

spelled Organigrams or Organigrammes), and Hierarchy Charts. They’re all the same

thing.

Why do you need an organizational chart for your business?

There is a multitude of benefits to creating an org chart for a business of any size.

First and foremost, it establishes authority and strictly enforces the expected

communication routes within the organization. This prevents miscommunication and

helps employees understand where they are in the hierarchy of the company.

With PowerPoint Org Chart Templates, there is complete transparency and 100% clarity

to everyone in the company to be on the same page in terms of who is responsible for

what, and how should be the information flow within the organization. Documented

organization structures also double as a roadmap for current employees to see where

their next promotion maybe, improving employee motivation. Additionally, companies

that restructure their hierarchy owe it to their current employees to be transparent and

upfront about changes in communication and authority by illustrating those changes

with a new org chart.

Often, small businesses choose not to create an organizational chart because the

employee count is low, or because it seems like a waste of time in comparison to core

business functions. In reality, organizational charts for small businesses are a way to

future-proof your business as it scales, ensuring consistency and a concrete document to

refer back to in case of confusion.

7 Types of Organisational Charts you should know (Includes organizational structure

examples which you can download)

1. Line organizational structure chart Also known as scalar-type organization structure which shows how the authority flows

from the top-most position to the lowest. Line organization structure chart tends to

simplify and clarify responsibility, authority, and accountability relationships. In a line

organization, authority follows the chain of command.

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One of the major disadvantages of the Line Organization structure is that it usually

suffers from a lack of expert advice. If the line manager has trouble making a decision,

there is no expert staff that he can turn to. Also, the line organization is usually rigid and

inflexible. Therefore, typically Line Organization structure is useful where the scale of

business is small and the number of subordinates and superiors are few or they are

found useful in organizations where primary work is routine in nature which could be

highly automated environments where specialized skills are not needed.

View Free Line Org Structure Template

2. Staff or functional authority organizational structure chart A functional Organisational chart is one of the organizational structure types which

organize staff based on their specific skills and knowledge. In a functional organization

structure, the entire organization is divided into smaller departments based on their

specialization. For example, an organization structured around functions will have a

finance department, an IT department, a marketing department, etc. The departments

are managed by experts in that area. This allows for greater efficiency in the work of the

employees.

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So every department has their own head or executive. And the reporting structure can

also differ from department to department.

View Organizational Chart Template

3. Line and functional organizational structure chart Most large organizations belong to this type of organizational structure.

Line and functional organization is a combination of line organization structure and

functional organization structure. The line Organization structure focuses excessively on

authority, and the functional organization divides the firm into various functional

departments. To avoid the limitations of both the structures, most of the organizations

follow the line and functional organization structure.

In a line and functional organization structure, both the line managers and the

functional managers have their own important roles to play. In this structure, the

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authority flows from the top down. The line manager is the one in charge. He is the one

with the authority to make all the important decisions of the company. The functional

managers are the expert in this scenario. They have the knowledge and expertise of their

field and are there to assist their line managers. They have an advisory role in the firm.

One of the main advantages is that line managers receive expert advice from functional

specialists. So they can leave the planning and research to the experts and concentrate

on the execution of the plan.

View Line And Functional Org Chart Template

4. Matrix organizational structure chart Matrix organizational structures are quite popular, as they emphasize efficiency,

creativity, and innovation. They combine two or more organizational structures.

Matrix organizational structures are so named because reporting relationships resemble

a grid (or matrix) rather than the typical hierarchy. This structure can be thought of as a

combination of the functional and projected approaches of organizing employees in the

company. Typically team members report to more than one boss: the head of their

department, and the project manager charged with overseeing a specific initiative.

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One of the major advantages of this organization structure is the ease of communication

between various departments which often leads to more collaboration, and better,

stronger organizations. Also, matrix organizational structures foster employee

development as employees work cross-functionally with various departments so are

exposed to multiple project types and ways of thinking.

View Matrix Organizational Chart Template

5. Divisional organizational structure chart The divisional organizational structure organizes the activities of a business around

geography, market, or product and service groups. Large corporations, especially large

multinational corporations, utilize a divisional structure. This approach is useful when

the company has multiple regions or products. The divisional organizational structure

provides a great deal of flexibility because each division operates separately and focuses

on the most pressing issues facing it rather than being trained by a central authority.

For each division, there is advertising, sales, production, clerical, accounting, and

development staff of its own.

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View Divisional Org Structure Template

6. Project organizational structure chart A project organization structure facilitates the coordination and implementation of a

specific project or product activity. This design uses teams of specialists from different

functional areas in the organization which helps in achieving specific results.

A project organization chart is a visual diagram to show the team members with their

roles. It helps to understand the relationships between team members, the structure of

the project organization, and their relative power positions.

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View Project Organizational Chart Template

7. Committee organizational structure chart A committee organizational structure chart can be defined as a group of members who

discuss and develop strategic solutions to problems.

The objective of setting up the Committee is to develop broader organizational goals,

finalize plans, and policies for the organization. Such committees are important as the

members of the committee bring rich experiences, expertise, diverse perspectives, and

information which are not one man’s job.

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View Committee Organizational Chart Template

View Organizational Chart Template

Here are some more examples of creative Org Chart Templates —

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View Organizational Chart Template

View Organizational Chart Template

View Organizational Chart Template

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View Free Organizational Chart Template

Browse a different variety of Org Chart PowerPoint templates.

If you are looking to quickly build an effective corporate presentation, we have several

PowerPoint Themes and backgrounds. Here is an example-

Project KickOff Meeting Powerpoint Presentation |Project KickOff Meeting Powerpoint Presentation |……

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Project Kickoff Meeting Presentation

Now you don’t have to scour the web to find out the right templates. Download our PowerPoint templates from within PowerPoint. See how?

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Originally published at http://slideuplift.com on August 13, 2019.

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