Your business's functions are the things it does – production, sales, marketing, research and billing, for example. The organizational structure defines the relationship and interactions between the parts of your business, and identifies how the chain of command runs through the different levels. Show
TipThe relationship between organizational functions and structure is like a flow chart. You can set up your business structure around your organizational functions, but even if you don't, function and structure will influence each other. Functional Structure Separates DepartmentsMost businesses adopt a functional organizational structure with a chain of command. In other words, different functions go into separate departments that report to department managers, who then report to someone higher up. If you adopt a functional structure, it has the advantage of clear lines of authority, with key decision-makers in each department who set the overall mission and tasks. The structure allows each employee to concentrate on her particular mission. A functional structure for an organization is not without its drawbacks, however. You can end up with departments that don't talk to each other or cooperate well. A customer may get bounced from department to department if his problem doesn't relate to one particular function. Divisional Structure Has Many BranchesA divisional organizational structure spreads functions across different branches: If you have different product lines, the division for each product line has its own functional groups such as marketing, R&D, sales and accounting. The advantage of this approach is that each division of the company has the personnel to carry out all necessary functions. In essence, each division can carry out its business operations more or less autonomously. The drawback is that with employees in each division performing identical functions, you could end up with a lot of redundancy and inefficiency. For instance, managing five human resource operations, rather than a single, centralized operation, means duplication of functions, managements systems, policy development and so on. Matrix Structure Provides FlexibilityUsing a matrix structure in your business can give you greater flexibility in business functions than a more hierarchical organization. In a matrix structure, each employee works in a function-based department, such as marketing or finance, but they can be assigned to projects under different managers and teamed with employees who have different functions. This structure adapts organizational function to changing organizational needs. The drawback is that the chain of command in a matrix may become cloudy and conflicted. Visualize With Organizational ChartsIf you or your staff have trouble visualizing a proposed structure, you can use an organizational chart to see it clearly. The New York and Erie Railroad developed the first organizational charts in the 19th century as a way to improve management efficiency. A chart shows the lines of authority and control running between different departments and levels of management. A well-designed chart will make it easy to see who makes decisions, who reports to whom and how your organization divides up its operating functions.  What is an Organizational Chart?The definition of an organization chart or "org chart" is a diagram that displays a reporting or relationship hierarchy. The most frequent application of an org chart is to show the structure of a business, government, or other organization. Org charts have a variety of uses, and can be structured in many different ways. They might be used as a management tool, for planning purposes, or as a personnel directory, for example. Perhaps your organization doesn't operate in a "command and control" style, but instead relies on teams. Here are some ideas and examples to help you design the perfect organisational chart for your needs. How Organization Chart Are UsedOrganizational charts are useful in a number of ways. Here are a few of the ways your company or group can benefit from an org chart.
The type of organization chart you make should mirror the managament philosophy and organizational structure of your company. There are four basic types of organizational charts:
Learn more about organizational chart types. Tips for Making Org ChartsCreating a perfectly formatted, professional-looking organization chart doesn't require special skill, but it also doesn't happen by accident. Here are 10 helpful tips for creating a perfect org chart. How to Make an Organizational ChartWe usually think of an organization chart of having a fairly rigid, top-down structure. Here's the format of a basic three-level org chart. But just as one size business suit doesn't fit everyone, the same can be said of an organizational chart. You'll want to custom-tailor an org chart to fit the needs of your organization. There are a lot of factors to consider. What type of information should be included in each box? Should the chart flow top-down or in another direction? What if there are people with multiple roles? The answers to these and other questions will help you decide how to create an organizational chart to fit your unique situation. Additional Org Chart ResourcesVideo: How to Make an Org Chart with SmartDrawThis informational video offers a brief overview of how to get started making an org chart with SmartDraw. Starting with an org chart template, this video takes you through the basics of creating a SmartDraw org chart. In less than four minutes, it shows you how to make an org chart that looks professionally produced. Using Org Charts OnlineGo beyond the printed org chart. Online org charts are interactive. They let you create hyperlinks to other information and resources. They are easy to share and distribute within or outside your organization. Plus, an online org chart doesn't have to be reprinted and redistributed, so it's much easier to keep up to date. Org Charts and Microsoft Office®More than 90 percent of organizations supply Microsoft Office® to their workers. Many try to make an org chart using Smart Art, and find it frustrating. Fortunately, SmartDraw integrates easily with the Microsoft Office® suite, as well as with other popular services such as Dropbox®, Google Drive™, and OneDrive®. Not only is it easier to create an org chart in SmartDraw, but learn how easy it is to transfer an organizational chart created in SmartDraw to any Microsoft Office® product. Create an Organizational Chart from Imported DataPerhaps the easiest way to create an org chart is to generate it automatically from a data file that lists all of the employees and who they report to. Learn how here. Organizational Chart ExamplesThe best way to understand organizational charts is to look at some examples of organizational charts. Org chart templates can give you a good starting point for making an org chart. Browse and edit popular org chart templates. Click on any of these organizational charts included in SmartDraw and edit them: Browse SmartDraw's entire collection of org chart examples. More info
What is the relationship between organizational structure and organization charts quizlet?What is the relationship between organizational structure and organization charts? An organization chart clarifies organizational structure. - Organizational structure is the specification of the jobs to be done within an organization.
How are organizational structures and organizational charts related?An organizational structure is a plan that defines the roles, links, and flow of information within an organization. On the other hand, an organizational chart visualizes this structure.
Is organization chart and organization structure the same?An organizational structure and an org chart can often appear similar on the surface, but there are some profound distinctions: Organizational structure is designed around the functions a business performs (e.g., sales, marketing, finance, engineering, etc.). An org chart is built around people and titles.
What is the relationship between organizational design and structure?The organizational design comprises the implementation of organizational structure and the schemes necessary to attain the organization's goals. The organizational structure represents the formal line of power and authority encompassing the roles and responsibilities that employees are assigned.
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What is the relationship between organizational structure and organization charts?
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