Leader: how to set up an organization chart in your business

An organization chart is never frozen again thanks to internet tools which allow us to update it without it being a tedious and above all time-consuming work. You can also complete it on a personal basis, as a manager, for example to mention skills and in the case of a change in the company to be able to offer employees a position that would better suit their profile.

Your business is growing and your organizational chart, which was limited to founders and sometimes a few associates, has become obsolete to meet new business needs. If this did not need to be formalized in writing when you first started out, your recruitment goals lead you to reconsider your position. So that growth is not hampered, you must set up an organization chart that will allow each employee to have visibility, a source of cohesion and performance.

An organizational chart ? kesako

The purpose of an organization chart is to determine the hierarchical (manager, executives, employees, etc.), organizational and functional links between the different departments. It allows you to define the positions and the links that exist between them. In short, it is a tool for distributing tasks within the company and can be summed up in the questions: what is the role of each, what is the link between each person, between each department?

It facilitates relationships because it defines the role of each:

With each recruitment, it allows to present to the new employee the organizational functioning of the company, the teams and the team that he will integrate.
For each employee, whether at the time of recruitment or during the evolution and growth of the company, to know his contacts, the links but also the hierarchical relationships and thereby to understand the evolution of his position and place in the company.
For the manager, the organization chart also makes it possible to identify dysfunctions but also to adapt the organization chart to new needs and new skills necessary for the development of the company.
It allows future employees, partners and customers to understand the functioning of the company and effectively distinguish the interlocutor to turn to based on their specific needs.
To be effective, this document must be constantly updated because it is a living document which only makes sense if it is updated regularly.

How to develop an organization chart?

The organization chart is not a simple graphic because it involves the life of the company. To do this, you will need:

Select wisely the employee in charge of its development who must certainly have graphic skills but first of all have seniority and knowledge of employees, their ability to understand the workings of the company.
Accurately carry out the inventory of employees, departments and functions within the company.
Determine the existing functional links between each department (marketing, customer service, accounting, human resources, etc.) as well as their reporting relationships. This step is crucial because some employees can be attached to several departments and it will be necessary to define who is his hierarchical superior in order to avoid unnecessary conflicts.
Proceed to the graphic design of the organization chart.
What are the main types of organizational charts?

There are 3 main types of organization charts:

The pyramid organization chart

Classic organization chart which makes it possible to determine both the relationship of subordination (the highest level of hierarchy is at the top of the pyramid) and to highlight the trades which are located at the same hierarchical level.

Organizational tree
The reading is done from left to right, the highest hierarchy level of the company is placed on the left

The folded organization chart
An organization chart which is an association between the pyramid and the tree. It is read from top to bottom and from left to right simultaneously.

But it will also be necessary to determine the organizational structure adapted to the company its products and services:

the functional structure: the company is organized into departments or functions (accounting, human resources, marketing, sales, etc.)
structure by product or service: each product or service is placed under the direction of a line manager.
structure by type of clientele: the company is organized according to each type of client, since each group has its problems and needs. (Large accounts, individuals …)
the geographical structure : the company is organized by geographical areas (France, country or each region delimited according to the sales representatives set up, etc.)

What graphic tool?

Several computer tools are available to the manager to facilitate the design of the organization chart and its reading. The acclaimed materials belong to Microsoft Office because they are easy to access (Word, Power Point and Excel), simple to use since they offer diagrams called “SmartArts” which only remains to be filled in with the titles of position, names of collaborators and even photographs for easy memorization and you find them in your toolbar.

Warning !
The organization chart should also make it possible to establish links with service providers because many companies outsource a large number of tasks. In conclusion, a document must be readable at first glance: there is no need to overload it with information.