Flat models work well for newer companies and startups, where the need is for quick decision-making and risk-taking to get the company off the ground. However, many organizations that have used this model found that it created split loyalties between different managers and resulted in conflicting priorities.Ī flat organizational chart removes middle management, allowing for faster decision-making. It could work well for a larger business that has a number of product lines. The benefit to a matrix organizational model is that it uses cross-functional groups, encouraging more open communication and collaboration across departments.
So if you work in marketing, you might find yourself reporting to the head of the product team and the head of the marketing team. As your organization grows, you will likely find yourself working with a hierarchical organization chart.Ī matrix model is when employees are grouped by project or product teams, and report to one or more functional managers. This type of model can work for mid-size and enterprise level businesses, as well as small businesses that are looking to scale. It can also result in work delays, as decisions go up the chain of command for approval. However, there is often a disconnect between departments due to low visibility. The benefit to a hierarchical model is that it’s familiar, stable, and has a clear chain of command that’s easy for employees to understand and follow.
In hierarchical models, employees are usually grouped by department and skill set. It shows the C-Suite at the top, followed by senior leadership, middle managers, and further on down the line. This is the most common type of org chart. Here are the most common types of organizational charts, their pros and cons, and why you might choose one type over another: The type you choose will be entirely dependent on your company’s goals and the structure it will take to get there. There is no right or wrong organizational model. Taking a talent optimization approach, your organizational design should be dictated by your business strategy-and your strategy may require a different organizational model than what currently exists. Instead, we strongly recommend taking a step back to think critically about your organization design, before laying out your organization chart. When it comes to creating your organizational chart, the first step is not to draw a diagram of your current workforce and reporting structure. Top tips to create an organization chart Pick what type of organizational chart you’ll use. They display and communicate internal structure within the organization, allowing individuals to understand the hierarchy of teams, departments, and the organization as a whole. Organizational charts play a critical role in the workplace.
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