As usual the last couple of weeks has gone by really quickly and I hope that as this first quarter rushes to a close you are taking stock of the achievements of the quarter. We all know that in the second quarter of the year things move into a higher gear. Also remember what we say that what is not measured cannot be managed. How are you measuring performance across board of all your assets including your human assets! I hope you have incorporated what I have been speaking about into your organisation to enable you have more clarity of purpose.
Today let’s look at the organogram also known as the organizational chart.
This is a diagram that shows the internal structure of the organisation and how the different jobs and levels relate to each other (the hierarchy). It is frequently used to show the chain of command and relative ranking of various positions in an organisation, department or function. The chart may include such information as the job titles and areas of responsibility of the positions and the skill set for each position.
This organogram should not be drawn to fit the people in the position currently. It should be drawn to show what positions and levels of the various jobs that will enable the organisation achieve the goals it has set for itself. The chart provides guidance to all employees and anybody looking at it because it lays out the official reporting relationships that govern the workflow of the company. These days it is also used as a company directory because the photo of the person occupying the position and contact details can also be included.
Before we come to the organogram the organisation must first set the goals of the organisation at large and the goals of the system and different departments of the organisation before the people who will drive the achievement of the goals are decided on.
What are organizational goals? They are the ends toward which the organisation’s efforts will be directed and may change from year to year, depending on the nature of the organisation or department within the organisation.
Organizational goal setting gives the organisation a road map for achieving its ultimate mission.
Each goal will have milestones which are specific actions to be taken, that once achieved indicate a demonstrable level of success. Achieving a milestone means a goal is reached.
There can be many types of organograms but let us look at three main types, The Hierarchical type, The Matrix type and The flat organisation Chart type,
A hierarchical chart is top-down organogram reflecting a traditional business structure. This structure shows employees being grouped together in teams where each employee has a clear manager to report to. Groups can be formed depending on various factors such as functions (Product development, Finance etc) it could be based on geographic locations or even according to products and services. This is most common in very large organisations.
The Matrix chart reflects a company where employees are divided into teams by projects or products 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. This is better than the traditional top down organogram that leaves the positions in silos making communication very difficult and sometimes almost impossible. So for example the sales team of a company may report to the Head of Sales but also report to the head of Marketing administratively to share the information collected through their interactions with prospects and customers. This is traditionally called solid and dotted line reporting.
In this way the cross functional teams can work together avoiding the problem of silos and better facilitate, more open communication thereby creating a flexible, dynamic work environment that can easily shift resources where they’re needed. The challenge can however be where there is confusion and frustration with dueling priorities and supervisors.
A flat organizational structure will show few or no levels of management between executives and all other employees. This type of structure empowers self-management and expedites faster decision making. It’s most often employed by smaller and newer businesses. The flat structure reduces bureaucracy, increases productivity while at the same time empowering employees to be more accountable.
You will need to choose which on you will use depending on your goals and vision.
There are many uses of the organogram. It shows the management structure, providing a reference for employees to help them understand their role in the organization, who they report to, and who reports to them. The chart can also show the organizational structure in terms of how divisions are connected and finally can show the business ownership structure, such as relationships between companies with common or affiliated ownership.
An organogram is also a planning tool because of how clear it makes all levels and duties. It makes it easy to visualize and effectively plan reorganizations, careers and generally manage staff. The charts make it easy to identify any employee or team that can become a bottle neck in the long run. If an employee or team is shouldering more responsibility than they should, this can be spotted very quickly. This helps in creating contingencies and back ups to pre-empt a systemic break down. The chart is therefore also a business continuity planning tool.
In many good and well panned organisations, growth is inevitable. As they enter new life cycles of growth, restructuring is inevitable. Employees will need to be moved based on skill set and expertise. A chart that has detailed information makes it easy to reshuffle staff and for a new team with the right team of functional skills.
The chart creates a road-map for reporting, how the work is to be done and the process required to ensure this information is shared throughout the company and to the right individuals. One of the best ways to ensure this is efficiently done is by having one supervisor with a few employees directly reporting to them.
In organisations, especially the larger ones, employees need to know who is their reporting head. This is important if there are slight challenges or they require guidance pertaining to complex problems, their supervisors can help them. Clearly defined chain of communication helps efficiently spread the message and minimizes losses in translation
Whether it is a start-up with a few employees or a big company with thousands of employees an organogram is of extreme importance. Sorry this was so technical this week. Next week promises to be more practical and there will be a picture of an organogram. I am sure I have not said anything you don’t already know. Do you use your organogram for all these uses.
Olamide Balogun
