What Is a Business Organizational Chart?

Any organization needs an organization structure for various reasons. For as long as there are people posted for positions and someone is hired in a higher position, an org chart will be an essential tool for establishing hierarchy. In addition, a business organizational chart is created in the form of a diagram that shows an organization's formation and how this relates to all the different the relationships and functions of different people with different positions or designations.

How to Make a Business Organizational Chart

There are different types of organizations. This is why you have to know your organizational structure to create an org chart effectively. In business, no man is an island because you need a partnership with people to run a different function in different positions or jobs. And since businesses are hierarchical organizations, a businessman has to learn the organizational design of his company. This allows him to create an organizational chart that aligns multiple business aspects. Here's a guide in making a business organizational chart.

1. Plan your Org Chart

Why do you think businesses need an organizational chart? Here's why: Org charts improve communication across departments and teams, save time by clarifying who does what, demonstrate business associations, and help you plan for growth and transition. These reasons allow you to carefully plan out your organizational chart to hit the target that you aim for. Spend time in deciding what type of organizational structure you prefer. Remember, your business' structure will dictate your organizational chart.

2. Choosing the Type of Org Chart

For the purpose of handling your simple business plan, there are three types of organizational charts that you'll likely want to make?—hierarchical/top-down, functional by the department, and matrixed or cross-functional. The deciding factor to what type of org chart you will use is the number of hired people in your business, the size of your business, and the complexity of your organization. So take your time to assess these factors.

3. Choose an Org Chart Template

You can find tools and templates on the internet or even find available features in your existing office software desktop application. Take advantage of the availability of the resources online than starting your organizational chart from scratch. A few examples of customizable business organizational charts are included above.

4. Fill Out your Template

Fill out your org chart with the names, titles, and as much information as you can fit into it. We recommend for most organizational charts to include the name, department, role or job title, location, and contact details such as phone, email, and headshot photo.

5. Finalize your Org Chart

Your organizational chart is not complete without proofreading it. Proofreading is essential to correct misspelled words, incorrect information, and/or lack of information. This saves you time, effort, and money.

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