A traditional organization chart reflects a company's hierarchy.
There are three main types of organizational charts: the hierarchy, matrix, and horizontal or flat. Each organizational chart visually depicts an organization's structure, allowing viewers to see the formal reporting structure at a glance. Some companies are moving toward a more detailed approach using value stream mapping to replace traditional organization charts.
Hierarchal
An organization chart that starts with the president or CEO on the top and displays his direct staff, the vice presidents or directors of functional groups, directly beneath is known as an organizational chart that shows hierarchy. Its function is to show reporting relationships from the top down. Managers and supervisors may be included in the pyramid-shaped chart. Relationships are shown as solid lines going from higher to lower level boxes. Those on the same level are perceived to have the same status within the company.
Matrix
A matrix organizational chart is used to show both hierarchy and general lines of communication. It may reflect top down organization similar to the hierarchical chart, but it also will show function or work group relationships. In cases where one person has multiple reporting structures, it will show these as dotted lines. Positions that are on the same level or row in the matrix chart may or may not be at the same reporting level within the organization. Departments or functional groups are used rather than an individual's name or job title.
Horizontal (Flat)
A horizontal organization chart depicts work flow rather than hierarchy or communication flow. The expectation in a horizontal organization is that the hierarchy is not important; the focus is on how the process works and gets done. This chart may show job functions and tasks rather than names of people and their positions. Relationships are portrayed using bi-directional arrows and dotted and solid lines. Reporting structure will not be evident because the emphasis is on the product rather than the people.
Value Stream Mapping
The most detailed organizational structure map, one that includes product flow, communication flow, steps, sequence, decision paths and hierarchy, is called a value stream map. It starts with customer inputs and ends with outputs back to the customer and shows by step and function what occurs first, second and so on throughout the process. It shows feedback loops, rework loops, decision-making requirements and communication methods. Companies implementing lean/Six Sigma/continuous improvement type-thinking are documenting detailed maps that include an entire value stream, including its decision makers and metrics related to outputs.
Tags: rather than, organization chart, organizational chart, chart that, communication flow