Every work environment follows a hierarchical structure where you need to deal with a lot of people. There you will get to know different levels of organizational structure. In a management, the hierarchy starts from the Chairman and goes to till the staff members. In the ecosystem, the level starts from the smallest element and goes till the atmospheric level. The chart changes with the change in the structure.
Models of Hierarchical Organizational Structure
In the hierarchical organization, there were some basic models. Like manorialism and feudalism was the basic structure of hierarchy of the society. On top there was a monarch or a king, who headed the state hierarchy. So, it can be termed that the governments and most of the companies have a similar structure of the hierarchical organizational chart. Some of the structures are:
Departmental Organizational Structure
In this structure, the company gets divided into various functional or departmental areas. The people, who are at the top of this chart, are very skilled and possess a lot of knowledge. They give advice wherever necessary. This might be counted as a disadvantage too. This might narrow the scope of workers and might crop their responsibility. This will lead to demotivation among employees.
Regional Organizational Structure
When companies use some geographical or regional organizational structure, it tries to match the different departmental or functional areas around it. It will work the best with companies and organizations which focus on local people. They try to come up with strategies which will make them locally popular.
Product Organizational Structure
The structure is made according to the product type. It deals with the responsibilities of the product. It helps a person to get all the information about the product and its company. But at the same time it might create identical resources which might lead to confusion.
Matrix Organizational Structure
When two types of organizational structures are combined, then matrix organizational structure is formed. It is done for some special projects only. You can use this structure for many years and can dissolve it after the introduction and selling of the product. When you have more than one manager you need to have a dual reporting which might be seen as a failure of this structure.
Horizontal or Flat Organizational Structure
This is adopted by smaller organizations or companies who are during their start-up stage. You can’t use this model for a long period and large employees and projects. In this structure, various middle management levels get eliminated, enabling the employees to take decisions independently and quickly.
Need of a Hierarchical Organizational Chart
- This helps the employees to get to know the different superiors at every level. They also deal with responsibility and authority.
- When the employees know they can get promotion, they get motivated and work efficiently.
- The employees become specialized in their job leading to job specialization.
- The employees start looking into the areas they work best in.
Uses of Organizational Chart
Accessing Company’s Functions
A businessman will use the organizational charts as a measure to eliminate the problems of the management. With the help of a template, you can understand the loopholes of your organization. It can help you in analysis the skills and duties. It will also help you to recognize the people to fit in those loopholes so that the company works effectively. In a small business searching a loophole is a must in order to make it a success. So, you can find out the points which are needed to be incorporated to make it more efficient.
Restructuring of the Organization
As your business starts capturing the market, then you can look for some measures which will help to lower the burden of your employees in various departments. You can use those organizational charts to fill the positions, which is needed by your organization the most. While making these changes you can then find out the managers which might be the right person for that department. Restructuring can be a good motivational policy which will motivate people to do the work more responsibly. This will also increase the productivity of the organization.
So, these are the few organizational charts and its uses. Now it’s up to you, which one you choose.