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Basic Principles of Organizational Structure

Organizational structure is the framework of a company through which individual work can be effectively coordinated and managed. A good organizational structure should be developed based on the following principles:

Strategy-oriented

The ultimate goal of organization design is to achieve the strategic objectives. Therefore, the design should aim at serving to reach the goals. It should be designed with the optimal position arrangement that makes the most benefits for the final goals.

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Design an organizational structure – Some Preparatory Work

What’s organization and what’s organizing?

Organization: Organization is a group of people who work and cooperate together in order to achieve a particular aim.
Organizing: Organizing contains the following aspects:

  1. Identify all business processes involved and make a classification.
  2. Divide key processes into groups.
  3. Authorize leaders to supervise each group.
  4. Make necessary rules and regulations.
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Corporation Org Chart Example in Detail

This is an org chart example of an auto parts production corporation. From the chart we can see, the top management team is composed of a board of directors, director, president, vice president, chief financial officer, chief engineer and the expert group.

Corporation Org Chart

More Templates Create Your Own Org Charts!
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Why Use Org Chart? – Top 10 Benefits for Using Org Charts

An organizational chart is an important part of an organization, as it’s the guidance of employee hierarchy relations. However, some small businesses choose to omit this step as their employee relationships are clear to see. This seems not wise. Why small businesses also need org charts? An org chart means much more than just outlining the reporting relationships of the staffs. It has many potential benefits on managing human resources issues. Now let’s talk about some key benefits of organizational charts:

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Football Club Organizational Chart – Introduction and Example

Long ago, football clubs were formed by friends, workmates, football lovers or sporting associations to enjoy playing the game and competing. But as time goes by, football clubs are becoming more formal, some larger clubs have turned to limited companies. Different clubs have different cultures and ways of construction. Here is a sample of a football club organizational chart. Let’s see how this club is constructed.

Football Club Organizational Chart

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Org Chart Resources Center
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Ad Agency Organizational Chart – Introduction and Example

The main function of an advertising agency is the promotion of goods, service, companies, and ideas by using creative strategies. An ad agency is generally independent of the client and provides an outside point of view for the client’s products or services.

Common Functional Departments of a Typical Ad Agency

As you can see a series of divisions such as accounting, marketing, administration, advertising, customer service and more in the following org chart.

ad agency org chart

 

Make Your Own Org Charts!

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Org Chart Layout

Layout org chart properly for a better visual effect which will make it more understandable. Here are a few layout techniques that help you make a better organizational chart.

Align and Distribute Shapes Evenly

Being organized is the basic feature of a professional-looking organizational chart. Align all shapes to make it look neat. You can do it easily in our org chart creator. It offers advanced tools to help you make org charts that are perfectly aligned and spaced at 1 click.

Distinguish Levels/Department in Different Colors

Color can add charm to your charts. For high readability, it is necessary to differentiate hierarchies or departments with various colors. In this way, readers can learn the structure in an instant. Use the color bar or palette to do it.

org chart

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H&R Department Organizational Chart – Introduction and Example

The main function of HR department is to oversee department functions and manage employees by planning, implementing, and evaluating human resources policies, principles, and programs. Basically, it involves functional activities including hiring qualified employees, establishing compensation structure, training staffs, addressing employee relations matters, and maintaining workplace safety.

Function Units:

  • Recruitment
  • Compensation and Benefits
  • Employee Relations
  • Training and Development
  • Workforce Safety

An HR organizational chart example:

HR Org Chart

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Construction Company Organizational Chart – Introduction and Example

The construction company org chart is a graphical depiction of the roles and structure of the organization. Using an org chart, staffs and stakeholders can clearly recognize the operational relationships, so that they know how does the company work.

Generally, a construction company contains basic function units including:

HR, Purchasing, Project, Engineering, Finacial, and Marketing department.

construction company org chart

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