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Organizational Charts

What are Organizational Charts?

An Organizational Chart – often referred to as an Org Chart – is a visual depiction of the structure of an enterprise. It consists of branches and levels. At the top, and usually in the centre, is the highest ranking person in an organisation. This is usually the Chief Executive Officer (CEO).

There will then be a line connecting her/him to their second-in-command. This line represents a ‘line of responsibility’. This means that the person at the bottom of the line is directly responsible to the person at the top of the line. Therefore, the person at the top of the line has authority over the person at the bottom, but also is in charge of managing/directing the work of their subordinate.

What roles are included in an Organizational Chart?

In the following order, you may find these roles in an Organisational Chart: 1. Chief Executive Officer (CEO) 2. Chief Financial Officer (CFO) 3. Chief Information Office (CIO) 4. Director 5. Managing Director (MD) 6. General Manager (GM) 7. Supervisor As you can see from these selected examples, those at the top are ‘C-Level Titles’. These are reserved for those at the top of a large corporate organisation, and they are given to those who are the heads of their divisions.

Why are Organizational Charts necessary?

Organisational Charts become even more strongly required as a business grows in size. As a company increases its capital, more staff are often taken on, and these staff have to know to whom they report. It is also useful for them to understand where they fit into the structure of a large organisation, and to understand their role.

These charts become crucial for strong project management. They allow a message, command or request to be sent to the correct person. This saves valuable time, especially where the next alternative could be to send it to somebody who one thinks is responsible for an area when in fact it is someone else’s jurisdiction.

Communication is key in any business, but when a company is growing at an unprecedented rate, it becomes even more critical. An Organisational Chart can help to reduce, or even remove, any difficulties when it comes to simple tasks, such as sending an email for permission to take leave; to more complex tasks, such as assigning roles for a new multi-stage project.

How are Organizational Charts created?

Organisational Charts may seem simple to the eye – and that is exactly how they are supposed to appear – but they can be very complex to build. The complexity furthers when current employees leave or change roles. This is where an automate organizational chart creator becomes a very useful tool. It removes the issue of trying to fit more levels, or take away levels, from an existing chart, and instead does it for you. All that needs to be uploaded to the template is the names, roles and to whom the person is responsible.

If you wish to know more about Organizational Charts, please refer to these links:

Hierarchy Structure

Smart Draw

Organizational Chart – Wiki

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