How to make the organization chart of a company

The organization chart is made to graphically show the hierarchies and responsibilities that each member has within a company. The order and disposition of the charges appears, and then in a procedure manual, specify the function of each position. A company that does not have an organization chart tends to be a disorganized company, therefore from step by step we will help you know how to correctly make the organization chart of a company.

Plot the activities

The first thing you have to decide when making the organizational chart of a company is if you want to outline it horizontally or vertically . The vertical format of the command unit is usually more common, where a subordinate will be directed only by a superior. This form is good to avoid conflicts between charges and misuse of resources. The horizontal chart is more common in large companies and is usually more extensive.

Type of organizational structure

It should be defined what type of organizational structure is best suited to the business:

  • Functional structure : the company is organized by departments or functions (accounting, HR, marketing, sales, etc.).
  • Structure by product : each main product is located under the supervision of an executive. The product itself is distributed.
  • Structure by client types : the company is organized according to each type of client, since each group of these has its problems and needs.
  • Geographical structure : organize the company by territories. Common in sales companies.

Define how many levels your company requires

This will depend on the size of the company and the number of people working in it. The organization chart probably grows with the passage of time, so it is reasonable to start with a basic model to be enlarged.

Drawing the organization chart on paper

Once you have clear the structuring and hierarchies of your company, it will be necessary to put on paper the organization chart. Regarding the technical issue, you can use your usual word processor such as Microsoft Word or search for specific programs for the organization of flow charts.