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Types of Organizational Charts

Organizational charts are a good way to visualize reporting relationships and team roles in businesses, nonprofit organizations,
educational institutions and governments.

Functional Top-Down Hierarchy:


A functional, top-down organizational chart reflects a traditional
business structure. This structure shows the C-Suite at the top,
followed by other senior management, middle managers, and so on.
The structure is divided into traditional departments like IT,
marketing, finance, human resources, and operations based on
everyone's functional role in the organization.
In such an organizational structure, employees with similar
skillsets and specialization are grouped together. However, they
often suffer from lack of visibility and communication with other
departments.

Divisional Organizational Chart:

A divisional organizational chart reflects a company organized


along a product line or specific geography. For example, in a car
company the divisions may represent SUVs, sedans, and electric
cars. Each division than has it own functional structure like IT and
marketing.
A company will use a divisional set up like this when one division
is sufficiently independent from another, however this kind of
structure can also add some accounting and other overhead.

Matrix Organizational Chart:


A matrix organizational chart reflects a company where employees
are divided into teams by projects or product lead by a project or
product manager, but also report to a functional manager. It shows
a company that operates using cross-functional groups instead of
vertical silos.
A matrix organizational structure can help facilitate better, more
open communication and create a flexible, dynamic work
environment that can easily shift resources where they're needed,
but it can also create confusion and frustration with dueling
priorities and supervisors.

Flat Organizational Chart:


A flat organization structure will show few or no levels of
management between executives and all other employees. This
type of structure empowers self-management and greater decision
making ability for every employee. It's most often employed by
smaller businesses, but it's not unheard of it even at larger
companies.

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