Keep in mind that you need the right org chart for your company. 5 Benefits of a Small Business Organizational Chart Certainly, it’s a foundational document from which all processes stem. We would argue that all companies–even those with a horizontal structure–need a hierarchical organizational chart. Does an org chart still have value for modern small businesses that don’t have a traditional hierarchy? Yet business structures and management practices have changed dramatically.Ĭompanies with a flat hierarchy and cross-trained employees that move between projects may think the org chart is obsolete. The respective divisions would have a certain autonomy but this would likely incur additional overhead cost.The traditional org chart has been a corporate staple for over a century. An example would be an auto manufacturer organizing its company by product type. It could be by product lines offered or geographic regions. Divisional - This chart subdivides the company based on some specific criteria.In this scenario, the matrix chart would connect the software developer to each manager they are working with, with vertical lines. Matrix charts often interconnect employees and teams with more than one manager, such as a software developer who is working on two projects-one with their regular team manager, and another with a separate product manager. Matrix - This more complicated organizational structure groups individuals by their common skill-sets, the departments in which they work, and the people they may report to.Flat - also known as a "horizontal" chart, the flat org chart positions individuals on the same level, indicating more power equality and autonomous decision-making ability than is typical with employees in hierarchical corporations.There is no single correct way to fashion an organization chart, as long as it identifies the officials, employees, departments, and functions of the firm, and how they interact with each other.
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