Organograms: meaning, practical uses and types

Meaning of an organogram

An organogram (organisation chart) is a diagram showing the structure of an organisation: its departments and positions, the reporting relationships between them, the lines of authority and communication, and the levels of management. Boxes represent positions or units and lines represent relationships: solid lines for line authority, and dotted lines for staff or advisory relationships. It gives a picture of the formal organisation at a point of time.

Practical uses of organograms

1. Shows the structure at a glance: the departments, levels and spans of control.
2. Clarifies authority and reporting: who reports to whom, reducing confusion and conflict.
3. Orientation of new employees: newcomers see where they fit and whom to approach.
4. Communication: shows formal channels for passing information.
5. Organisational planning and analysis: reveals overlaps, gaps, too many levels or overloaded managers, and helps in restructuring.
6. Manpower planning: shows vacancies and succession needs.
7. Information for outsiders: investors, regulators, clients and partners learn how the organisation is arranged.
8. Fixing accountability: positions and their responsibilities are visible.

Types of organograms

By direction of drawing

1. Vertical (top-down) chart: the top authority at the top and successive levels below; the most common.
2. Horizontal (left-to-right) chart: the top authority on the left and lower levels to the right; useful for wide structures.
3. Circular chart: the chief executive at the centre and successive levels in concentric circles; it reduces the sense of superiority and inferiority.

By content

4. Skeleton (structural) chart: shows only positions and relationships.
5. Functional chart: shows the functions performed by each unit.
6. Personnel chart: shows the names of the persons holding the positions.
7. Master chart: shows the whole organisation; supplementary charts show details of particular departments.

By structure represented

8. Charts of hierarchical (line, line-and-staff, functional, divisional) structures, and of flat, matrix (two-dimensional grid) and network structures.

Example. A college's vertical chart places the governing body and principal at the top, then vice-principals and heads of departments, then faculty and administrative staff, with a dotted line to an external advisory committee.

Limitations

An organogram shows only formal relationships, not the informal organisation or the actual working of authority; it does not show the degree of authority; it becomes outdated quickly; and it may make the structure seem more rigid than it is. It is therefore best read together with job descriptions and an organisation manual, and kept up to date whenever the structure changes. Many organisations now keep their charts in human-resource software, so that they update automatically.