Types of organizational chart in business studies

1 answer

There are several types of organizational charts commonly used in business studies.

1. Functional Organizational Chart: This type of chart groups employees based on their specific tasks and functions, such as marketing, finance, operations, etc. It shows the hierarchy of positions within each functional area.

2. Divisional Organizational Chart: This chart divides the organization into different divisions or departments based on product lines, geographic regions, or customer segments. Each division operates as a separate entity with its own functional areas, such as marketing, finance, and operations.

3. Matrix Organizational Chart: This chart combines elements of both functional and divisional structures. It shows the dual reporting relationships that employees have, where they report to both a functional manager and a project or product manager. This structure is often used in project-based or dynamic organizations.

4. Hierarchical Organizational Chart: This chart depicts the formal chain of command within an organization, with each level reporting to the level above it. It shows the top-down structure and clear lines of authority from the highest-ranking executives to the lowest-level employees.

5. Flat Organizational Chart: This chart represents a relatively decentralized structure with few levels of hierarchy. It emphasizes employee empowerment, collaboration, and open communication. This structure is often found in startups or smaller organizations.

6. Team-based Organizational Chart: In this chart, the organization is organized around teams rather than individual positions. It shows the different teams and their members, highlighting the importance of cross-functional collaboration and team-based decision-making.

These types of organizational charts can be used individually or in combination, depending on the specific needs and characteristics of the organization.