Any company in any industry needs it company organization chart, which is a prerequisite before putting the business into operation as well as operating and managing to achieve high efficiency. This article will share detailed information about this chart and some popular company model patterns today.

What is a company organizational chart?

Company organization chart is a visual chart that describes features, shapes, images that indicate positions or people in the business, this type of chart has a very important role in the operation and management of the business.

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The role of the company organizational chart

Companies that put into operation, want to manage and operate effectively, initially need to build an organizational chart for the following reasons.

• The diagram helps to show the hierarchy and internal structure of the company: By showing the system on a diagram people can see the system most clearly.
• Help employees understand their roles and responsibilities: An important role of the company's organizational chart is that employees can understand their roles and responsibilities, contributing to doing the right, enough and most effective work assigned from management.
• The diagram has the effect of clarifying the individual responsibilities of each department: The responsibility of each individual as well as of each department is also clearly shown on the company's organizational chart. This contributes to promoting a sense of obligation to the company to help it grow and operate more smoothly.

• Store employee contact information more conveniently: Employee contact information is quite a big data especially in large companies. Thanks to the company organization chart, their contact information will be stored more conveniently.
• The management department easily captures the number of employees: Looking at the organizational chart, the department of management can promptly capture the number of employees at each time, especially when there is a problem. This is of great help to the department holding managerial and executive roles.
• Help employees understand their career development roadmap: A growth path is something every employee wants to know, especially in an active business. This will help them have more motivation and long-term goals for the company's plans, and work together with the company to achieve the best results.

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How to create a simple company organizational chart

Create a company org chart by xIdentify types of organizational structures

When the enterprise embarks on the implementation of the organizational chart, it is necessary to carefully study the model that is most suitable for the internal company. By a correct and sufficient model will be able to support the company to operate and operate most conveniently.

When making a decision on the type of organizational structure, enterprises need to identify two issues:

• What functional groups are in the workflow and what departments or teams the company has: This is key to coming up with the right type of structure.
• The company needs to understand the relationships in the org chart: Supporting the structure ensures seamless communication between individuals, departments, and the company as a whole.

Create a company chart byorganization chart

When making diagrams, you need to make sure that the organizational chart supports smooth communication throughout the company. How to draw a company organizational chart is done in 2 steps:

• Statistics of job roles in the company: Statistics of all job roles in the business, create job descriptions for each current and possible position in the future. Specify the function and duties of each job position and the minimum relevant skills and experience requirements for that position.
• Build a job description for each specific role and complete the diagram: Draw an org chart according to the best practices and how information is shared within your business.

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Current popular corporate organizational models

Currently, businesses have a lot of options to choose from different corporate organizational models for reference and effective application. Here are some popular corporate organizational models today including:

• Matrix model
• Functional organizational structure
• Flat organizational model
• Organization chart by geography
• Decentralized organizational model

Matrix model

The matrix organization model is built on a multi-dimensional support and authority system, the information in this model will be operated both vertically and horizontally.

Besides, matrix organization is considered by experts to be the most difficult system, because resources are pulled in many directions, but it helps businesses improve efficiency and productivity.

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Advantage:

• Improve the efficiency of the communication process in the business.
• Individuals in the enterprise have the opportunity to use specialized skills.
• Enhance the smooth coordination between organizations in the company.
• Make decisions faster.
• Optimizing human resources.

Limit:

• May lead to personal irresponsibility.
• One employee under many managers.
• Time consuming.
• Conflicts between project managers and functional managers can occur.
• It is difficult to assess individual performance.

Functional organizational structure

The functional organizational structure means that each management function will be handled by a department. Therefore, it is required that personnel must master professional skills and be proficient in the profession they manage.

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Advantage:

• Instructions are clearer.
• Clearly define the responsibilities of workers and departments.
• The individual's level of specialization is enhanced.
• Firms can use labor specialization at the management level.
• Improve output and quality of production with high efficiency.
• Planning and monitoring are more effective in the business.

Limit:

• Coordination between employees and departments becomes limited.
• Decisions can be delayed and inefficient.
• Create barriers and inefficiencies across different functions
• The work of supervision and implementation stagnates.
• Leadership conflicts arise.
• Conflict between personal goals and organizational goals.

Flat organizational model

In this model, working positions often do not have titles. Therefore, the employees in the company are all equal and operate according to the self-management model.

However, this flat organizational model can only be applied to businesses with few employees or businesses with a strong collaborative environment among employees.

Advantage:

• Cost savings
• High personal responsibility.
• Shorten personnel.
• Communication is enhanced.
• Decision approval time is shortened

Limit:

• The possibility of losing control.
• Monitoring and connecting personnel becomes difficult.
• Work pressure.
• Power struggles of management levels arise.
• This model can create barriers to company growth.
• Difficult approval.
• Create a power vacuum
• Employees are less likely to get promoted and less motivated.

Organization chart by geography

A company with many operating branches would fit this model better. Businesses following this model will need to report continuously to the head office.

Advantage:

• Human resources will be well aware of the company's functions.
• Clearly planning the structure of the company.
• The operation and working process becomes smooth and efficient.

Limit:

• Supervision and management become more limited.
• Difficult to update information.

Decentralized organizational model

Decentralized organizational model is a traditional model, work will be communicated from the top department to middle management and then to employees. This type of model tends to be bureaucratic and heavy on distinctions between levels.

Advantage:

• Clearly define responsibilities as well as authority.
• The roadmap for advancement in the business is transparent.
• Employees have the opportunity to focus on developing their professional skills.
• Resources are shared, avoiding overlap and duplication of responsibilities.

Limit:

• The decision was made late.
• Communication gap.
• Common goals are not agreed from individuals and levels.
• The coordination is not good between departments, tends to be competitive.
• Ineffective against environmental and competitive pressures.

Sample company organization chart by type of business

By type of business there are two organizations: Joint Stock Company and Co., Ltd.

Organization chart of joint stock company

A joint stock company is built with the following main organizations: the General Meeting of Shareholders, the Board of Directors, the director or general director of the company, and the Supervisory Board. Each title will be equivalent to a different position and role in the business.

Organization chart of the limited company

A limited liability company has two types of organizations: a one-member limited liability company and a two-member limited liability company.

• One member limited liability company is owned by an individual. The structure of a one-member limited liability company includes: Chairman of the company, director or general director.
• A two-member limited liability company operates from 02 to 50 members. And the operation and management in this company is easier than for a one-member limited liability company due to the relationship between shareholders.

Sample company organizational chart by industry

Each company will have a different organizational chart. Let's follow some sample company organization chart by industry below.

Company organization chartconstruction field

Organization chart of construction company There are two things that need attention:

• Size and products
• Core services provided.

Construction enterprises have many fields, but basically there will be two main structures:

• The company has construction
• The company has no construction.

Company organization chartproduction sector

It can be divided into two categories, each with a different organizational chart:

• Production - processing
• Commercial production

Company organization chartcommercial

A trading company is a type of business that buys and sells goods and products through stores and distribution channels. Therefore, the organizational chart of this type of company will focus on the strategic department, expanding the market more than other companies.

Company organization chart Logistics

Logistics company is a company with supply chain, investment and distribution of products. That is why, in the organizational chart of the Logistics company, special attention is paid to the management system such as: Administration, human resources, warehouse, sales, ...

Company organization charttrucking

The main service of a transport enterprise is the transportation of goods. Therefore, in the organizational stage, the transportation company has an additional transportation and quality control department to make the transportation service delivery process more efficient.

Company organization charttravel

As a company providing services to customers, and the organization chart of the travel company will also include the main parts such as: Accounting, human resources, operations, business, ...

Watch the video How to create a company chart easily with Excel

Sample company organizational chart by department

Organization chart templatecompany boss

The corporation is the highest level of management unit of the division. Therefore, the corporation needs to build the most optimal organizational chart for effective operation, management and supervision.

Organization chart template pto Human Resources

Effective HR department is when each unit will specialize in a key function. Basically, the human resources department is divided into two departments:

• Human resources management
• Human resource management.

Organization chart template pto do business

Sales department is a department with different organizational structure depending on their field, product, culture, etc. The three most common business room diagram models include:

• Island model
• Chain model
• Group model.

Organization chart template pTo Accounting

Depending on the size of the business, the structure of the accounting department will be different. Common elements in the structure of the accounting department:

• Accounting manager
• Deputy Accountant

Organization chart template pTo Marketing

Marketing is an activity with high social management. Therefore, the structure of Marketing department will focus on strategic elements, plans to develop sales and corporate brand.

Download the company chart Power Point templates available here

Ending

Company organization chart is an important factor in operating and managing the business most effectively. With the organizational chart templates shared above, businesses can refer to and flexibly apply internally to achieve common goals.

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