How to Make Sense of an Organizational Chart

organizational charts taught at Career Quest Learning Centers

 

The most successful businesses have solid mission statements, measureable goals, and an organizational structure that makes sense to their unique needs. Whether you step into a new position at a huge corporation, or get a job offer with a company that only has a handful of employees, you need to know a thing or two about how the business is organized. Its organizational chart is the place to start. But, believe it or not, many companies do not have formal org charts. People kind of, sort of know everybody’s role, but not really. If you understand the value of an organizational chart and how to create one, you might be able to convince everyone in the company to get on board.

 

Benefits of The Org Chart

 

Just like you need to be well-organized to be successful, so do companies. But there are other benefits to having a good organizational chart in place:

 

·         Gives a business the structure it needs to meet its goals and objectives

·         Divides the functions of the company

·         Shows relationships between departments and staff and who’s in charge of what and whom

·         Offers employees a clear understanding of their individual roles and responsibilities and where they fit into the bigger picture

·         Allows employees to see how they could advance within the organization

 

How it Might Be Structured

 

The most basic components of an org chart reflect what a company actually does. There are different kinds of charts depending on the company, organization, or governing body. The U.S. government actually has its own organization in the form of its three branches: executive, legislative, and judicial. But in a company, it’s all about making a profit or fulfilling a mission and having the most efficient structure to get there.

 

At the top of the chart would be the people or person in charge. Below him or her there would be other managers, each in charge of specific departments such as:

 

·         Production

·         Operations

·         Purchasing

·         Sales and marketing

·         Accounting, finance, and legal

 

Different Types

 

Org charts aren’t one-size-fits-all. That makes sense, right? For example, a hospital wouldn’t measure its success the same way that a real estate company would so why would they have identical structures? Here are three different ways to organize a company:

 

·         Functional: Departments are grouped by the functions they perform

·         Divisional: Employees are grouped on factors other than just function, such as product, customer base, and location

·         Matrix: Combines elements from each of the above to promote flexibility and efficiency

 

Do you work at a company that has a well-developed organizational chart? Tell us about it. Just like you, we always like to learn more about businesses and how they operate. If you’d like to get started in a business career, check out the Career Quest Learning Centers business programs by giving us a call in Lansing at 877-481-4930  or in Jackson at 877-365-8144.

 

 

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