Creating an Organigram - It's That Simple!

1. What is an organizational chart and why do you need it?
2. Different types of organizational charts
3. Creating an Organigram in 7 Steps
4. The most popular tools for creating organigrams

Probably, each and every one of us knows this situation: You are starting a new job and now you have to remember seemingly 1000 faces, names and positions. Of course, it helps when the Onboarding process includes an organizational chart that highlights the key figures of the company. In this article, we show you how you can provide your new employees with such a graphic and thus make their start in your company easier.

What is an organizational chart and why do you need it?

An organizational chart is a kind of overview map of the people and their roles in your company. It shows who is who, who does what, and how everyone is connected.

In its simplest form, an organizational chart is a graphic representation that shows the relationships between people, teams, departments, or even entire companies. It's not just a neat diagram on a piece of paper, it's a living, breathing document that reveals the structure of a company or project. Hierarchies become clear, and the communication paths become obvious - everything at a glance.

By the way, the initial onboarding mentioned is just one of the many uses where an org chart is practical. Other possible applications include:

• Presentation for service providers or customers: If you have external partners who work with your company, an org chart can significantly simplify things. It provides a quick overview of key personnel and departments, so everyone immediately knows who the contacts are.

• Project Management: In complex project management with many stakeholders, an organizational chart helps clarify who plays which role. Who is the project management? Who are the team leaders? A look at the org chart, and everything becomes clear.

• Company planning and strategy: If you run a company or are involved in making decisions, an org chart can help you analyze the current structure and identify possible improvements. It's like a map that shows you where you are and helps you plan the path into the future.

• Analyzing communication flow: Wondering why information sometimes gets stuck in your company? An org chart can reveal where the bottlenecks are and help create more efficient communication paths.

• Compliance and reporting: In some industries or countries, there are legal requirements for documenting the company structure. A detailed org chart not only meets these requirements but also makes internal and external audits easier.

• Promote team collaboration: By clearly showing responsibilities and relationships, an organizational chart can help improve understanding and collaboration within a team or between departments.

So you see: whether in a small start-up or a multinational corporation - org charts are much more than just decoration. They are a practical tool that can help make corporate life more efficient, transparent, and ultimately more successful in various contexts.

Different types of organizational charts

Depending on requirements and information content, there are different variations of organizational charts available. Here we briefly introduce you to a few of the most common types:

Hierarchical Organigram

The hierarchical org chart is probably the best known and most commonly used. It represents the traditional company structure where each employee reports to exactly one manager. The top management level is at the top, and the various management and employee levels follow below. The lines between the levels show who reports to whom. This org chart is especially suitable for companies with a clear, pyramid-like structure and is useful for visualizing the direct reporting paths.

Advantages:

• Clear structure: All employees have exactly one superior, which clearly defines responsibilities.

• Simple representation: Easy to understand and intuitive for most people.

• Promotes discipline and order: Clear reporting paths facilitate communication.

Disadvantages:

• Lack of flexibility: Can lead to rigid structures that make changes difficult.

• Risk of bureaucratization: Too many hierarchical levels can slow down communication.

• Promotes silo thinking: Departments can operate in isolation, which hinders collaboration.

Matrix Organigram

In the Matrix Organigram, employees have more than one manager. This diagram shows a complex organizational structure, where employees can be assigned to several projects, functions or product lines at the same time. The horizontal axis could represent functional areas and the vertical axis could represent product lines or projects. The matrix organizational chart is especially useful in companies that want to promote flexible and interdisciplinary collaboration.

Advantages:

• High flexibility: Employees can be active in several projects or departments.

• Promotes collaboration: Facilitates interdisciplinary collaboration between various teams.

• More efficient use of resources: Resources can be assigned dynamically and as needed.

Disadvantages:

• Complex: Can be confusing and requires good management.

• Possible conflicts of interest: Since employees have multiple supervisors, goal conflicts can arise.

• Communication challenges: Clear communication paths have to be established to avoid misunderstandings.

Flat Organigram

The flat org chart represents a company structure where there are few or no management levels between management and employees. This type of org chart is particularly suitable for small companies or startups, where hierarchies are minimal and all employees work closely together.

Advantages:

• Fast communication: Fewer hierarchical levels facilitate communication.

• Promotes innovation: Employees have more freedoms and can act more creatively.

• Strengthens team spirit: Everyone works closer together, which promotes team dynamics.

Disadvantages:

• Can become confusing: Lack of clear structures can lead to confusion as the company grows.

• Less control: Management has less control over individual employees or teams.

• Possible role ambiguity: Without clear hierarchy, responsibility can be unclear.

Network Organigram

The network organizational chart stands out from the others because it doesn't necessarily show a clear hierarchy. Instead, it shows the relationships between different departments, teams, or even companies. The connections can go in all directions and are not limited to a top-down structure. This organizational chart is suitable for companies that rely on high networking and collaboration between different areas, or for representing relationships between different companies within a group.

Advantages:

• High networking: Promotes communication and collaboration between different areas.

• Flexible: Can represent different types of relationships, not just hierarchies.

• Represents complex structures: Ideal for modern, networked companies.

Disadvantages:

• Can become confusing: Too many connections can make the diagram chaotic.

• Harder to create: Requires a good understanding of relationships within the company.

• Less clear responsibilities: The fluid structures can lead to ambiguities.

Circular Organigram

A circular organizational chart represents the hierarchy in the form of rings, with top management in the center and the lower levels arranged in concentric circles. It can be seen as a variation of the hierarchical organizational chart, but promotes a more holistic and less hierarchical view of the organization. This type is used in companies that want to promote a more equal and integrative culture.

Advantages:

• Promotes equal view: Less hierarchical, emphasizes more collaboration.

• Visually appealing: Can be aesthetically more appealing than traditional organizational charts.

• Shows connections between all levels: Not only top-down but also horizontally.

Disadvantages:

• Can be unfamiliar: Not as intuitively understandable as traditional hierarchical diagrams.

• Possible ambiguities: The less clear hierarchy can create confusion.

• Limited depth of detail: Can become difficult when many levels and details need to be represented.

Creating an Organigram in 7 Steps

Now let's get down to the nitty-gritty: Regardless of which type you choose, the following will show you what you need to consider when you want to create your org chart.

1. Set goals and select the type

Define your goal: What do you want to achieve with the org chart? Do you want to visualize the internal structure or plan a new project? Your goal determines the type and complexity of the org chart.

Then choose the appropriate org chart type: Decide on the type that best suits your organization, keeping in mind the advantages and disadvantages of the different types.

2. Collect and organize data

Collect the necessary information: This includes names, positions, departments, and responsibilities. You also need information about the relationships between the individual elements.

Then organize the data: Organize the information so you can easily transfer it to the organigram.

3. Choose a creation tool

Choose your software: Depending on your requirements, specialized organigram software, PowerPoint, Word, or Google Sheets might be suitable. You can also find a list of suitable organigram tools further down in this article.

Pay attention to user-friendliness: If several people are working on the organigram, the tool should be easily accessible.

4. Design your organigram

Now it's time to create your organigram - in Google Sheets, for example, you can do it like this:

• Open a new spreadsheet.

• Enter the desired persons, roles or positions in column A. In column B, enter the person, role or position to whom they report each. In the end, it should look something like this:

• Now go to the menu above under “Insert” -> “Charts” and select the Organigram chart here. 

• Then you may need to adjust the hierarchical structure. You can do this, for example, according to the following pattern:
  

  

• Et voilá! That's it. Your organigram is (almost) ready and should look something like this:

5. Design and customization

Choose an appealing design: Colors that match your brand make the organigram attractive.

Adapt it to different purposes: You can create different versions for different target groups.

6. Review and approval

Have your organigram reviewed: Colleagues or superiors might find errors or make suggestions.

Obtain approval (if necessary): In some organizations, official approval is required before publication.

7. Distribution and updating

Share the org chart with the relevant people: Make sure that everyone who needs it can access it.

Plan regular updates: Since organizations change, the organigram should be kept up to date.

The most popular tools for creating organigrams

Does this all sound complicated and time-consuming at first? It doesn't have to be! On OMR Reviews you will find numerous providers of software with which you can create your organigrams in no time - rated by real users. We have brought you a few of the most popular tools here already:

Lucidchart

HR Puls

OrgChartPlus

Freshteam

draw.io

Teamdecoder

WhoKnows Enterprise