An organizational chart is a visual illustration of a company’s organizational structure that provides details of an employee, his/her position, department, job, and reporting relationship. There are many types of free organizational chart templates available, and you can select the one that best suits your requirement and customize it the way you want it.
Listed below are the three types of organizational charts that are used in organizations:
Hierarchical Organizational Chart
A typical hierarchical organizational chart looks like a pyramid, with the CEO at the top, then the middle management and the staff level employees at the lowest rung. You can organize the chart department-wise as well.
In small companies, the hierarchy is very clear, everyone reports to the owner of the company. But a formal hierarchical organizational chart is required, if the number of employees in the organization is more. An organizational chart gives stability and clarity to the employees and outlines their level, responsibility, and who they report to.
Matrix Organizational Chart
This chart looks like a grid, wherein an employee may be reporting to two different managers. The employees are grouped based on their skill-sets, projects they work on and the managers they report to. For example, a group of engineers may be working on two different projects and reporting to two different projects managers.
The matrix organizational chart will list both of these reporting relationships. This reporting, where the employee reports to more than one person, can at times lead to confusion and conflict of interest. Employees can use their skills in various roles besides their original capacity. The chart also makes it easy for supervisors to identify and select engineers depending on their capability.
Flat or Horizontal Organizational Chart
This chart is useful for companies that do not give much importance to the title. It shows only two levels – upper management and lower management. The flat structure encourages employees to be more responsible and take onus for their work. The employees can communicate better and are more involved. Flat Chart is most suitable for small companies but difficult to use once the company grows.
Organization Chart Excel
Using the organizational chart in Excel, you can customize the complete organization hierarchy. For example, you can check out the sample Excel spreadsheet, with the following columns – the name of the employee, division, team, designation, and team lead or the supervisor. The team lead is the person who is supervising the employees of that department. You can also include photographs and link them to their contact information and bio data.