This system is essential for companies to show the company's structure in a simplified and visual way and facilitate its management.
According to the Royal Spanish Academy (RAE), the organizational chart is the “synopsis or outline of the organization of an entity, a company or a task.”
Given the complex structures currently used by gambling data usa companies, it is necessary to have these types of diagrams to facilitate understanding.
As stated in the blog Gestión Pyme , the organizational chart is usually carried out using “a graphic representation, and through it the entire internal structure of the company in question is represented.” The organization can be carried out following different aspects, such as hierarchy, interrelations or competencies. This website emphasizes that the organizational chart must be made according to the current context of the company.
One of the fundamental objectives of this system is to ensure that anyone can understand and interpret the internal structure of the company, even in a simplified version.
By having a broader perspective of how companies operate, potential errors can be detected more quickly and action taken accordingly. This is not the only function of this scheme, as it allows “analysing where improvements are most needed in the company, such as improving management plans or the execution of tasks”.
The vertical organizational chart is not the only option that companies can choose, although it is the most common. Another option would be to opt for the horizontal organizational chart (the organization goes from right to left, so the hierarchy is established by columns). “The vertical and horizontal organizational charts can be combined, giving rise to the mixed organizational chart, which is little known but possible to create,” says the Gestión Pyme website.
Another alternative would be circular organizational charts, where the hierarchy is established from a central circle as the top point and, from there, other circles are established around it.