Business Organization Charts: What are they, Types, Uses and MORE

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The Business Organization Charts are informative graphic structures that represent the photograph of a company. In addition, they are a administrative instrument necessary to better understand the functioning of an organization within a context or reality.

According to the above, if you are a businessman or entrepreneur and you think that an organization chart design is not important, stop! We invite you to review this article so that you know the benefits of this business instrument. Thus, if you want to know a company better, start with its organization chart, follow us.

What are Business Organization Charts?

Next, the Business Organization Charts They are a administrative scheme that shows at first glance the conformation of an entity. That is, a structure that represents the organization of the company at the level of authorities, workers and work or production units.

According to the above, with a Organization chart, internal and external users of the company will be able to view internal communication lines. That is, who is the authority in each department or work unit that lowers the instructions and who should report.

Likewise, for offices such as Human Talent Unit, this structural design is essential. In this way, you will be able to understand which units coordinate and make decisions, which units are processors and which are consulting or staff offices.

Likewise, you should know that not all Business Organization Charts They are equal. This means that said structure will depend on the nature of the company, the policies of the entity’s owners, the demands of factors such as customers and suppliers, etc.

Also, these administrative structures they are not static. They must adapt in time to the dynamics of organizational reality. This implies adjustments in its structure of work or production units due to changes in sales, increase or reduction of payroll, reorientation of roles, among other conditions.

What are they used for?

For countries like México, have Business Organization ChartsEither in the private sector or in the public sector itself is of vital importance. In this sense, this visual design allows to show in an orderly way all the Structure of the organization.

In any case, stay with us so that you know the diversity of benefits that the structure of a business organization chart in the Aztec country. The main thing is that its graphic design allows a general diagnosis of the company in the following terms:

  • It’s a administrative instrument support for Office of Human Resources of the company at the level of information on positions, functions, hierarchy and work units.
  • It allows to identify the key units of the company for production processes or strategic business projects.
  • The structural organization chart facilitates the definition of organizational goals.
  • Helps workers better orient themselves on promotions and promotions of positions.
  • Its design supports the definition of activities in each department and the roles of each operator according to their capacity, experience and academic training.
  • Lets create executive proposals for constant monitoring and business improvement.
  • Facilitates evaluation of inconsistencies in the structure of the company to detect failures and promote improvement of the organizational system.
  • Guarantees a better comunication between the workers and authorities at the hierarchical level, at the instructional and reporting levels.
  • It also serves to strengthen the relationships between work teams, avoid duplication of efforts and join forces for organizational commitment.
  • It is a thermometer for the improvement of roles and leadership in the activity of the company, avoiding the double supervision of tasks and optimizing operational processes.

How are Business Organization Charts Built?

So far, we hope you are clear on what the Business Organization Charts and its usefulness within organizations. If so, continue with us so that you have the necessary tics that you should take into account if you are going to develop your organization chart:

  • The first thing is identify reporting lines to know the roles of each worker, know who supervises, who should report and what to report.
  • Adjust the command lines to the type of business relationships that you want to form. That is, if it is a structure of many command lines or more flat.
  • Create the “Work boxes” waves departmental units. This will depend on the assessment of the positions of each worker and the function of each unit in the company.
  • Determine with a analysis of position and departmental competencies, if the work centers will work in a linked or sequential way or on the contrary, separately.
  • Ask your work staff to indicate their roles in each unit, so you can identify which functions are supervisors and which are analysts.
  • Define the hierarchy space in each work office. That way you must know if a boss in the structure is going to have a lot or a few personnel in charge.
  • Design the top down flow chart.
  • Based on the above, start with the highest position and follow the hierarchy level.
  • Ensures that the structure allows a scope of the entire system of the organization.
  • Once the organization chart design, assesses that the instrument facilitates decision making.
  • It checks that the scope of the actions of each unit can be detected, its interdependence with others, that is, that it allows the system to be sustained.
  • Finally, define a visual design easy-to-use and understandable structure for internal and external users of the company.

Who should prepare the organization chart in a company?

In general, the elaboration of Business Organization Charts It is the responsibility of the Human Talent Offices in the different companies. Thus, in México, a formally established organization delegates to the Human Resources Management the design of this instrument.

The foregoing is due to the fact that said support unit is responsible for organizing the company’s personnel. Therefore, from there, the positions, responsibilities, command relationships and tasks of the work units are structured.

On the other hand, it should be noted that if you have a small-scale enterprise with few staff, it is usually your responsibility to design the organization chart. In that situation, small companies do not have a Personnel Office and the respective design is attributed to the boss or owner of the business.

RememberNowadays, with advances in digital technologies, it is easier to adjust organization chart designs. For this reason there are online packages suitable for the needs of companies. If you don’t know any Workflow software for organization charts, we invite you to see the following link.

Information Needed to Prepare the Organization Chart

In another vein, it is important to mention that the elaboration of Structural Organization Charts it does not respond to criteria or fixed norms in general. Therefore, as we explained above, there are factors such as the nature of the company or the type of business, to design them.

However, there are some technical and acceptance criteria general which is good for you to know, in case you need to make your own organization chart. In that sense, they are certain methodical rules that are easy to understand and organize. Cheer up, We are going to explain them to you:

  • Use of geometric shapes and structures, used to indicate the work units, are figures of the same size and thinly drawn in the shape of a rectangle to show a certain rigidity and formality of the company.
  • Use of criteria in location of polygons or “boxes” that represent the work units, normally, the managerial and advisory figures go first and lower the forms that represent the work centers.
  • Placement of hierarchical lines to denote the command structure between administrative units, they are thick lines for chain of command and dotted for functional authority or if they are heads of the same level.
  • Indication of name of work units, in order to specify the function of said department, without the possibility of ambiguities.

Important: Most of the Mexican States have in their Organization and Methods Offices, Organizational Chart Planning Manuals and Guides to support public and even private companies in their design. If you are interested, just visit some link with a PC and a good internet connection.

Benefits of Business Organization Charts

In short, Business Organization Charts They are a widely used technique in the organizational world. With the design of an organization chart you can obtain a variety of benefits that will facilitate a better understanding of your company internally and externally. That way:

  • Its design allows your workers and managers to visualize their role within the organization.
  • This way you can know who to report to, which authority to go to in the control line to request or deliver information.
  • The instrument allows you to define supervisory and operator functions.
  • The formal communication channels and correctly separates the relationships between bosses and analysts in any administrative management task or process.
  • Improve the control and organization of the company in time, for its adaptation to the new needs and depending on their administrative levels.

Create your Organization Chart and show the power of your company!

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