Ever seen the titles SDE-1, SDE-2 on job descriptions? Or designations like ‘manager,’ ‘director,’ etc.? In the business world, these titles are indicative of the experience, expectations, and position of a particular role in the organizational structure.
They signify a position in the organizational hierarchy, typically represented as a chart known as an organogram. This visual representation of organizational structures plays a crucial role in org design, productivity, efficiency, team performance, and culture.
In this blog post, we explore how you can create and optimize organograms for successful business outcomes.
How to Create and Optimize Organograms
Summarize this article for me pleaseUnderstanding Organograms
An organogram is a visual representation of a company’s structure. It typically includes the following:
- Individual roles throughout the organization
- Break up of departments/teams
- Hierarchies within each department/team
- Relationships among individuals, teams, and departments
The organogram, also called an organigram or an org chart, can be simple, showing parts of the organization, such as regional offices or departments, functions, and how they are connected. It can also be complex, with detailed hierarchies, departments, and sub-units.
Uses of an organogram chart
At its core, an organogram is a visual representation of the various parts of the company. It helps everyone in the company understand the big picture. Beyond this, organograms are also helpful in:
Org design: A clean visual of the organization helps leaders ensure every department is adequately staffed. For instance, if you’re missing a head of engineering, an empty block in the org chart will point it out during review meetings. If your engineering head has made a lateral move to become the CTO, you’ll see that clearly, too!
Providing clarity: They clarify the reporting structures within the organization, helping employees identify who to contact for specific issues or information.
Delineating responsibility: Organograms ensure that all business areas are adequately covered without any overlaps in responsibilities. They help balance the work burdens of employees, especially leaders.
Onboarding: An organogram is a simple and powerful tool to help new employees understand the entire organization. It helps create familiarity and belonging quicker.
Agility: A visual representation of the organization—with the ability to zoom in and out—enables resource allocation, delegation, collaboration, and decision-making.
Simulation and planning: When you are restructuring an organization or are going through a merger, you might need to visualize various versions of the new organizational design. Organograms enable such simulation without affecting on-ground dynamics.
Organograms are, ultimately, communication tools. They help organizations communicate current structures, future plans, changes, and more. Naturally, there is more than one way to do this.
Types of organograms
At its core, an organogram is a graphical representation with nodes and connectors. Based on the structure of your organization, it can be:
Hierarchical
This organogram resembles a pyramid, with the highest authority at the top, followed by middle management and employees.
Matrix
This org chart visualizes a structure where employees report to more than one manager. It is commonly used in organizations that require flexibility and collaboration across different projects.
Flat
This kind of organogram is great for organizations with a flat structure, mainly found in startups and small businesses.
Here are the key differences between the types of organograms:
| Aspect | Hierarchical | Matrix | Flat |
|---|---|---|---|
| Levels of roles | Clear chain of command where every employee knows who they report to | Clear line of authority, though there are multiple managers for each employee | Every employee directly reports to the leader, without middle management |
| Suitable for | Well-defined roles and linear structures | Teams that are formed and dismantled based on projects | Self-managed small teams |
| Goals it serves | Clarity and stability | Flexibility and modularity | Simplicity and speed |
| Advantages | Department-based specialization, well-defined career path | Cross-functional collaboration, availability of diverse skills | Ownership and accountability, visibility and recognition |
| Disadvantages | Bureaucracy and complex approval systems delayed decision-making | Ambiguity in work responsibilities, unmanageable sphere of influence | Bureaucracy and complex approval systems; delayed decision-making |
Depending on the type, size, and culture, an organization can have a combination of these structures as well.
For instance, the whole organization can use a hierarchical structure, while one cross-functional team within may use a flat organigram.Â
In the next section, we talk about how to choose your org structure and design an organigram for it.
Summarize this article for me pleaseSteps to Create an Organogram
Let’s say you are a startup with five employees. Grab a pen and paper and sketch out how these team members work together. Go ahead and frame the paper. It is your first organogram.Â
Wish every organization was that simple. As the number of employees, roles, departments, products/services increases, you would need a complex organogram. Here’s how to create one using a collaborative workspace tool like ClickUp.
1. Understand your organizational structure
Structures dictate how people connect and what their roles are in an organization. Poor design can create a mess with contradictory hierarchies, role confusion, lack of coordination, failure to share ideas, and slow decision-making.
So, begin your organogram activity by understanding how you currently function. Identify the following:
- All employee roles and levels you have (developer, designer, tester, etc.)
- All managerial roles and levels (project manager, team manager, department head, etc.)
- Reporting relationships for each individual
- Lateral connections, if any
The best way to do this is by talking to various stakeholders, including HR and department heads. You might also find some information in your team charter templates. Be sure to document the knowledge adequately.
You can use ClickUp Forms to create surveys, or you can set up one-to-one meetings and capture notes on ClickUp Docs. Once documented, share it securely with relevant stakeholders for their comments, if any. Collaborate in real time and effortlessly convert notes to tasks.
2. Define the purpose and scope
For whom and why are you creating your organogram? Is it for internal purposes to visualize team structure or as a record for investors?
If it is for internal purposes, you might add specific role codes (like SDE-1, manager, etc.), including salary range, or even individual names, if needed.Â
If it’s for the investor, you might want to focus on leadership and skill strength. Clarifying the scope will help you decide what information to include in the chart.
3. Choose your organogram layout
Based on your current organization’s structure and purpose, choose an organogram style, whether it’s hierarchical, matrix, or flat layouts. Choose one that best reflects your organization. Feel free to use multiple layouts within the same chart, if needed.
Consider these matrix organizational structure examples for a better understanding of how companies across different sectors use it.
4. Choose the right organogram design tool
Once you’ve chosen a structure, it’s time to draw. To do this, you can use a notebook, a glass wall, or even a spreadsheet. However, these tools don’t allow for the flexibility and adaptability you might need.
The best org chart software, especially for hybrid teams, is a collaborative workspace like ClickUp Whiteboards. With ClickUp, draw your charts, add nodes and connectors, include images/sticky notes, embed docs, tag people, and more!
Boxes and angles don’t work for you? Check out ClickUp Mind Maps for your organogram software. Add lists, tasks, and checklists, and play around with the features until you can build the chart.
5. Design your organogram
Start working from the top: Establish a clear hierarchy by starting with the executive level, then senior management (Vice Presidents, Directors). Then, work your way down each department, team, and individual team members.
Add details: Include the employee’s name, job title, responsibilities, social media handles, websites, photos, and other fun facts. Based on the use case, decide what information will be relevant. You can find employee profiles and data from your workforce analytics or employee database software.
Format and present: Stay consistent in the design of your organogram. Keep the shape, color, formatting, font size, etc. limited to a common design language; If you can align it with your brand language, even better.
If this is your first organogram, don’t be stuck on a clean slate. Try ClickUp’s Organizational Chart Template to get started. This intermediate-level template helps you visualize your company, add/remove roles, keep everyone on the same page, and scale effectively.
6. Make it dynamic
Organograms are living documents that evolve alongside your company. When you’re creating an organogram, make space for it to be updated regularly.
- Set up the canvas to add departments, teams, and employees later
- Set calendar reminders and revisit your org chart periodically to ensure it reflects the nature, needs, and changes in the business accurately
- Document changes and corresponding reasons for audit purposes
- Inform stakeholders of changes, provide context, and update information in all training materials
ClickUp Automations can streamline the updation process with triggers and actions that you can edit before hitting publish. If you’re using ClickUp Mind Maps, it can automatically stay updated when you update the resources connected to it.
7. Review and validate
Before finalizing the organogram, review it again with critical stakeholders to ensure accuracy and completeness. This helps identify any missing information or inaccuracies in the relationship structure.
Now that you know how to create an organogram, let’s see how to use it.
Summarize this article for me pleaseOrganograms and Workforce Engagement
A good organizational chart can help workforce planning and engagement in various ways. Here are some of the most common uses.
Onboarding: Org charts facilitate employee onboarding, helping new employees quickly understand the roles and reporting lines.Â
Employee support: Every employee can use an org chart to know who to contact for their concerns. Who is the head of the sexual harassment prevention committee? Who is responsible for booking travel? Who is the expert in Scala programming language? Organograms can answer all this and more.
Collaboration: Even within seemingly confusing structures, organograms can bring clarity.
For instance, in a matrix structure, an organogram can provide clarity about the intersections of various cross-functional teams.
Transparency: An organogram shows who is accountable to whom, also serving as an escalation matrix. This creates transparency and openness.
Succession planning: Organograms are central to identifying potential leaders and critical roles within the organization. They help HR teams visualize the current talent landscape, identify skill gaps, and prepare for future transitions.
Summarize this article for me pleaseOrganize, Chart, and Navigate Your Company Structure with ClickUp
You may have heard that people are the most important asset in an organization. This is only partly true. In fact, the real asset in an organization is more than the sum of its parts. It includes the connections, collaborations, and collective strengths of every individual.
An organogram is akin to a treasure map that helps you discover hidden assets. Whether flattening out a traditional hierarchical model or broadening the scope of the matrix structure, organograms make it easy for people to understand the big picture and the details.
With a project management tool like ClickUp, you can do all this and more. You can bring together the data about projects, tasks, and people, to create dynamic organizational charts.
Sign up for free today to get started!
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