Definition: Organogram (Organization Chart)
An Organogram (or Organization Chart) is a graphical tool used to illustrate the hierarchical structure of an organization. It outlines the roles, responsibilities, and relationships between individuals within the entity. This chart typically shows the connection and lines of authority among various positions and departments within a company.
Examples
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Simple Organizational Chart: In a small business, an organogram may feature the owner at the top, followed by managers who oversee various departments such as sales, marketing, and operations.
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Complex Corporate Structure: Larger corporations have more complex organograms, often involving multiple levels, divisions, or geographic regions. For example, a multinational company might have a CEO at the top, with regional directors in different countries, and further sub-divisions under each regional director.
Frequently Asked Questions
What is the purpose of an organogram?
The purpose of an organogram is to provide a clear and accessible overview of an organization’s structure. It helps employees understand their roles, the hierarchy, and reporting relationships, which can improve communication and efficiency.
How is an organogram created?
An organogram is created by first listing all the positions in the organization and then arranging them in a hierarchy, typically from top management down to entry-level staff. Specialized software or drawing tools like Microsoft Visio, Lucidchart, and SmartDraw can be used to design the chart.
What are the different types of organograms?
There are several types of organograms:
- Hierarchical Org Chart: This traditional model features a straight-line relationship from the top management down.
- Matrix Org Chart: Reflects a more complex structure, often with employees reporting to multiple managers.
- Flat Org Chart: Indicative of a minimal hierarchy or a decentralized approach.
How often should an organogram be updated?
An organogram should be updated regularly—anytime there are changes in the company’s structure, such as new hires, promotions, or departmental restructurings.
What are the benefits of using an organogram?
- Clarity: Provides a clear view of the organizational structure.
- Communication: Enhances understanding between different departments.
- Efficiency: Aids in identifying gaps or redundancies within the organization.
- Strategic Planning: Helps in resource allocation and organizational planning.
Related Terms
- Hierarchy: The arrangement of individuals within a corporation according to power, status, and job function.
- Reporting Lines: The chain of superior-subordinate authority within an organization.
- Corporate Structure: The layout of an organization’s departments, divisions, and roles.
- Span of Control: The number of employees a manager is directly responsible for.
Online References
- Investopedia: Organizational Chart
- Wikipedia: Organizational Chart
- Mind Tools: Organizational Charts
Suggested Books for Further Studies
- “Organizational Culture and Leadership” by Edgar H. Schein
- “Reframing Organizations: Artistry, Choice, and Leadership” by Lee G. Bolman and Terrence E. Deal
- “The Five Dysfunctions of a Team: A Leadership Fable” by Patrick Lencioni
- “The Organizational Design Toolkit: a step-by-step guide to designing a high-impact organizational structure” by Talish Rafiq
Accounting Basics: “Organogram” Fundamentals Quiz
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