Organizational chart

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Example of a functional hybrid organizational chart Departments in advertising agencies.jpg
Example of a functional hybrid organizational chart

An organizational chart, also called organigram,organogram, or organizational breakdown structure (OBS), is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. The term is also used for similar diagrams, for example ones showing the different elements of a field of knowledge or a group of languages.

Contents

Overview

Tabulating Machine Company pyramid style organizational chart, 1917 with directors, officers, and various systems Tabulating Machine Co Organization Chart.jpg
Tabulating Machine Company pyramid style organizational chart, 1917 with directors, officers, and various systems
League of Nations complex organization chart, 1930 with secretariat, advisory bodies, and third party organizations League of Nations Organization.png
League of Nations complex organization chart, 1930 with secretariat, advisory bodies, and third party organizations

The organization chart is a diagram showing graphically the relation of one official to another, or others, of a company. It is also used to show the relation of one department to another, or others, or of one function of an organization to another, or others. This chart is valuable in that it enables one to visualize a complete organization, by means of the picture it presents. [3]

A company's organizational chart typically illustrates relations between people within an organization. Such relations might include managers to sub-workers, directors to managing directors, chief executive officer to various departments, and so forth. When an organization chart grows too large it can be split into smaller charts for separate departments within the organization. The different types of organization charts include:

There is no accepted form for making organization charts other than putting the principal official, department or function first, or at the head of the sheet, and the others below, in the order of their rank. The titles of officials and sometimes their names are enclosed in boxes or circles. Lines are generally drawn from one box or circle to another to show the relation of one official or department to the others. [3]

History

The Scottish-American engineer Daniel McCallum (1815–1878) is credited for creating the first organizational charts of American business [4] around 1854. [5] [6] This chart was drawn by George Holt Henshaw. [7]

The term "organization chart" came into use in the early twentieth century. In 1914 Brinton [8] declared "organization charts are not nearly so widely used as they should be. As organization charts are an excellent example of the division of a total into its components, a number of examples are given here in the hope that the presentation of organization charts in convenient form will lead to their more widespread use." In those years industrial engineers promoted the use of organization charts.

In the 1920s a survey revealed that organizational charts were still not common among ordinary business concerns, but they were beginning to find their way into administrative and business enterprises. [9]

The term "organigram" originated in the 1960s. [10]

Limitations

There are several limitations of organizational charts:

An organogram is more flexible and adaptable to changes in the organization, such as new products, services, or partnerships. An organizational chart is more rigid and stable, and may not reflect the current reality of the organization

Examples

Simple military charts Organizational chart.svg
Simple military charts

The example on the right shows a simple hierarchical organizational chart.

An example of a "line relationship" (or chain of command in military relationships) in this chart would be between the general and the two colonels—the colonels are directly responsible to the general.

An example of a "lateral relationship" in this chart would be between "Captain A", and "Captain B" who both work on level and both report to the "Colonel B".

Various shapes such as rectangles, squares, triangles, circles can be used to indicate different roles. Color can be used both for shape borders and connection lines to indicate differences in authority and responsibility, and possibly formal, advisory and informal links between people. A department or position yet to be created or currently vacant might be shown as a shape with a dotted outline. Importance of the position may be shown both with a change in size of the shape in addition to its vertical placement on the chart.

See also

Related Research Articles

A hierarchy is an arrangement of items that are represented as being "above", "below", or "at the same level as" one another. Hierarchy is an important concept in a wide variety of fields, such as architecture, philosophy, design, mathematics, computer science, organizational theory, systems theory, systematic biology, and the social sciences.

A hierarchical organization or hierarchical organisation is an organizational structure where every entity in the organization, except one, is subordinate to a single other entity. This arrangement is a form of hierarchy. In an organization, this hierarchy usually consists of a singular/group of power at the top with subsequent levels of power beneath them. This is the dominant mode of organization among large organizations; most corporations, governments, criminal enterprises, and organized religions are hierarchical organizations with different levels of management power or authority. For example, the broad, top-level overview of the hierarchy of the Catholic Church consists of the Pope, then the Cardinals, then the Archbishops, and so on. Another example is the hierarchy between the four castes in the Hindu caste system, which arises from the religious belief "that each is derived from a different part of the creator God’s (Brahma) body, descending from the head downwards.”

<span class="mw-page-title-main">Tree structure</span> Way of representing the hierarchical nature of a structure in a graphical form

A tree structure, tree diagram, or tree model is a way of representing the hierarchical nature of a structure in a graphical form. It is named a "tree structure" because the classic representation resembles a tree, although the chart is generally upside down compared to a biological tree, with the "stem" at the top and the "leaves" at the bottom.

<span class="mw-page-title-main">Data model</span> Model that organizes elements of data and how they relate to one another and to real-world entities.

A data model is an abstract model that organizes elements of data and standardizes how they relate to one another and to the properties of real-world entities. For instance, a data model may specify that the data element representing a car be composed of a number of other elements which, in turn, represent the color and size of the car and define its owner.

<span class="mw-page-title-main">Chart</span> Graphical representation of data

A chart is a graphical representation for data visualization, in which "the data is represented by symbols, such as bars in a bar chart, lines in a line chart, or slices in a pie chart". A chart can represent tabular numeric data, functions or some kinds of quality structure and provides different info.

<span class="mw-page-title-main">Flowchart</span> Diagram that represents a workflow or process

A flowchart is a type of diagram that represents a workflow or process. A flowchart can also be defined as a diagrammatic representation of an algorithm, a step-by-step approach to solving a task.

An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims.

<span class="mw-page-title-main">Concept map</span> Diagram showing relationships among concepts

A concept map or conceptual diagram is a diagram that depicts suggested relationships between concepts. Concept maps may be used by instructional designers, engineers, technical writers, and others to organize and structure knowledge.

<span class="mw-page-title-main">Entity–relationship model</span> Model or diagram describing interrelated things

An entity–relationship model describes interrelated things of interest in a specific domain of knowledge. A basic ER model is composed of entity types and specifies relationships that can exist between entities.

<span class="mw-page-title-main">Infographic</span> Graphic visual representation of information

Infographics are graphic visual representations of information, data, or knowledge intended to present information quickly and clearly. They can improve cognition by using graphics to enhance the human visual system's ability to see patterns and trends. Similar pursuits are information visualization, data visualization, statistical graphics, information design, or information architecture. Infographics have evolved in recent years to be for mass communication, and thus are designed with fewer assumptions about the readers' knowledge base than other types of visualizations. Isotypes are an early example of infographics conveying information quickly and easily to the masses.

Senpai and kōhai are Japanese terms used to describe an informal hierarchical interpersonal relationship found in organizations, associations, clubs, businesses, and schools in Japan and expressions of Japanese culture worldwide. The senpai and kōhai relationship has its roots in Confucianism, but has developed a distinctive Japanese style. The term senpai can be considered a term in Japanese honorifics.

<span class="mw-page-title-main">Business process modeling</span> Activity of representing processes of an enterprise

Business process modeling (BPM), mainly used in business process management; software development or systems engineering, is the action of capturing and representing processes of an enterprise, so that the current business processes may be analyzed, applied securely and consistently, improved, and automated. BPM is typically performed by business analysts, who provide expertise in the modeling discipline; by subject matter experts, who have specialized knowledge of the processes being modeled; or more commonly by a team comprising both. Alternatively, the process model can be derived directly from digital traces in IT systems using process mining tools.

A heterarchy is a system of organization where the elements of the organization are unranked (non-hierarchical) or where they possess the potential to be ranked a number of different ways. Definitions of the term vary among the disciplines: in social and information sciences, heterarchies are networks of elements in which each element shares the same "horizontal" position of power and authority, each playing a theoretically equal role. In biological taxonomy, however, the requisite features of heterarchy involve, for example, a species sharing, with a species in a different family, a common ancestor which it does not share with members of its own family. This is theoretically possible under principles of "horizontal gene transfer".

A data-flow diagram is a way of representing a flow of data through a process or a system. The DFD also provides information about the outputs and inputs of each entity and the process itself. A data-flow diagram has no control flowthere are no decision rules and no loops. Specific operations based on the data can be represented by a flowchart.

Business process mapping refers to activities involved in defining what a business entity does, who is responsible, to what standard a business process should be completed, and how the success of a business process can be determined.

Lateral communication is "the exchange, imparting or sharing of information, ideas or feelings between people within a community, peer groups, departments or units of an organization who are at or about the same hierarchical level as each other for the purpose of coordinating activities, efforts or fulfilling a common purpose or goal

<span class="mw-page-title-main">Function model</span>

In systems engineering, software engineering, and computer science, a function model or functional model is a structured representation of the functions within the modeled system or subject area.

Text and conversation is a theory in the field of organizational communication illustrating how communication makes up an organization. In the theory's simplest explanation, an organization is created and defined by communication. Communication "is" the organization and the organization exists because communication takes place. The theory is built on the notion, an organization is not seen as a physical unit holding communication. Text and conversation theory puts communication processes at the heart of organizational communication and postulates, an organization doesn't contain communication as a "causal influence", but is formed by the communication within. This theory is not intended for direct application, but rather to explain how communication exists. The theory provides a framework for better understanding organizational communication.

<span class="mw-page-title-main">Classification chart</span>

Classification chart or classification tree is a synopsis of the classification scheme, designed to illustrate the structure of any particular field.

The operations manual is the documentation by which an organisation provides guidance for members and employees to perform their functions correctly and reasonably efficiently. It documents the approved standard procedures for performing operations safely to produce goods and provide services. Compliance with the operations manual will generally be considered as activity approved by the persons legally responsible for the organisation.

References

  1. Crowther, Samuel (undated). John H. Paterson – The Romance of Business, Geoffrey Bliss
  2. Grandjean, Martin (2017). "Analisi e visualizzazioni delle reti in storia. L'esempio della cooperazione intellettuale della Società delle Nazioni". Memoria e Ricerca (2): 371–393. doi:10.14647/87204. See also: French version (PDF) and English summary.
  3. 1 2 Allan Cecil Haskell, Joseph G. Breaznell (1922) Graphic charts in business: how to make and use them . p. 78
  4. Alfred D. Chandler, Jr. (1962). Strategy and Structure: Chapters in the History of the American Industrial Enterprise. Cambridge, MA: MIT Press.
  5. Burton S. Kaliski (2001). Encyclopedia of business and finance. p.669.
  6. For years people believed no copy of this chart survived, see for example: Sidney Pollard, Richard S. Tedlow (2002) Economic History. p. 18
  7. Caitlin Rosenthal (2012), Big data in the age of the telegraph, McKinsey Quarterly, March 2013.
  8. Brinton, Willard Cope. Graphic methods for presenting facts. The Engineering magazine company, 1914.
  9. Alexander Hamilton institute (1923) Organization charts. p. 6
  10. Angus Stevenson (2010) Oxford Dictionary of English. p. 1252