What is an organizational chart and what is its importance?

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Organizations need to support their operations on a solid foundation – this is the main function of organizational charts. But what is an organizational chart?

Informing employees of their true role within a company should be a priority for managers.

In addition to clarifying the impact of their performance on corporate paytm database results , instilling the company's values ​​in internal dynamics is essential to generate commitment, optimize productivity and, above all, motivate them.

With a well-defined organizational chart, professionals can review the organizational structure whenever they need to clarify a question, solve a problem or make a comment, thus turning to the right person for that request.

To make it easier for teams to access this information, you can even post some points about the organizational chart on the corporate blog . This way, professionals will know who to contact as soon as they need to.

In this post, you will find a lot of relevant information about organizational charts and, in the last section, you will access a step-by-step guide to creating one with excellence.

Forward!

What is an organizational chart?
An organizational chart is a tool or diagram that allows team members to visualize the internal structure, as well as the roles and groups of the different departments in a graphic, clear and fast way.

This graphic representation is especially interesting for the Talent Management sector , as it explains the hierarchy of positions by team, considering the contribution of each professional and the manager of each area.

Learn more about managing talent by reading the following posts:

Learn the essential elements for good Human Capital Management in organizations .
Learn about the competency management model and how it helps increase productivity in companies .
Turnover: How to reduce talent loss in companies and why it is so important .
Thus, it is a structure widely used in employee onboarding , to manage human capital more efficiently, handle conflicts and other situations arising from interpersonal relationships in the business environment.

Types of organizational chart
Below we provide you with relevant details about the different types of organizational charts according to their classification dynamics:

Nature
Microadministrative: used to represent just one company, either globally or according to its areas.
Mesoadministrative: includes companies in the same sector or specific segment, thus serving to measure the degree of activity of a certain medium or to regulate a sector.
Macro-administrative: complete, covers information from various companies and represents the units in a simplified manner.
Graphic Representation
Horizontal: With units from left to right, the hierarchy is represented in columns.
Vertical: characterized by a pyramidal structure—higher to lower levels—and includes the branched units of a business.
Block: derived from the vertical ones, but has more units from the last levels of hierarchy.
Mixed: combines horizontal and vertical representations with the aim of providing a more reliable view of the corporate structure. This is usually extremely useful for organizations with many units at the base.
Circular: The highest unit in the hierarchy is located at the center of the group of concentric circles. Each of these circles represents a degree of authority that decreases towards the ends.
Around
General: includes information up to a certain level of hierarchy.
Specific: Provides more details about the structure of a certain sector of the business.
Purpose
Analytical: focused on professionals belonging to the staff, it involves information about business activity, as well as behavior.
Informative: aimed at companies outside the business, they present the essential parts of the corporate structure.
Content
Comprehensive: they present all sectors, as well as their dependency and hierarchical relationships.
Functional: in addition to representing the units and their interrelations, they include the functions developed by the different sectors.
What is the importance of the organizational chart for companies?
From a general perspective, organizational charts make it possible to analyze each of the corporate structures in a detailed and orderly manner.

Within this type of representation, people can find the names of professionals, detect what position they occupy and learn about their main duties .

A well-defined organizational chart provides relevant information about the company's operations, so we can coordinate activities, strategies and projects that we want to implement.

Another interesting aspect is that the tool serves as an indicator of the level of growth of a business, mainly if the company updates it periodically.

However, the relevance of an organizational chart encompasses other aspects such as:

Guides the definition of objectives
This type of scheme makes it possible to establish specific and general objectives for each department, as well as to monitor the measures that the company undertakes to achieve them.

Brings transparency to the growth process
When employees understand the business hierarchy, they gain a broader view of the knowledge they need to acquire and the attitudes they need to adopt to grow within the company.

This motivates professionals to develop and want to climb the career ladder.

Design the chain of command
The structure informs the relationships within departments and includes the names of the managers of the different sectors, thus improving the distribution of authority.

Directs the division of tasks
We can use the organizational chart as a guide to structure and delegate tasks, from the most general and large to the most specific and small.

Detect errors and problems in the structure
It allows you to identify errors in the structural organization of the company, define ways to improve it and optimize functions, avoiding, for example, duplicate roles that do not function properly.