Circular organization chart (definition, advantages and disadvantages)

The circular organization chart It is a type of scheme that can provide information on a certain company that is characterized by its spherical shape, with the ability to identify internal levels.

This scheme focuses on represent the services that the company has to customers, without determining the same command line as can be seen in other types of organization charts.

It contains a central circle, where the figure with the highest authority in the company is located and has around it the number of concentric circles necessary, according to the people who represent the organization.

Objectives of circular organization charts

The organization charts have been designed with the purpose of represent everything that comprises or the internal structure of a company

, the chain of command of the same and all those responsibilities that each of its participants has.

The classical scheme also known as Organization chart vertical, has the shape of a pyramid and its power levels flow from the top and fall according to the levels of positions of its participants.

This situation, over the years, has been a reason for companies to change management modes, since they have realized that these traditional schemes have influenced the demotivation of their workers.

Due to this, many current companies have dedicated themselves to looking for new forms of business management, such as circular management. These have the particularity of not representing the job positions, but the services, which are in favor of the client and not the boss. Although workers do not all have the same responsibility or role, they are not placed in the chain of command.

It is important to know that the client is the reason for the success of the company, therefore it is necessary to place it in the center of this scheme, since it is the nucleus that allows the corporation to continue with its work and in the same way induces growth business.

Advantages provided by the circular organization chart

Like any scheme, this one also has the ability to provide multiple positive aspects or benefits that represent a solid structure, such as those detailed below:

• You can suppress the chain of command and the levels of ranks found within the company, as they perfectly indicate the importance of each hierarchical level.
• The client is considered the most important being, therefore he is the center of the corporation, even above the boss.
• All company workers have the responsibility to please the customer.
• More jobs can be added that have the same hierarchical level.
• It produces stimulus to employees by not creating differences between the levels of positions, this is because they eliminate or at least reduce the thinking of the highest or lowest ranks.

Disadvantages produced by circular organization charts

To determine the negative aspects that this type of scheme presents, the type of functions of the company philosophy, the type of organizational structure and also the type of activity it carries out. Taking this into account, some of its disadvantages are:

• For many it is difficult to understand it, since it is not structured like the schemes that have a beginning and an end.
• Understanding is difficult to determine the classification of command posts.
• In the case of large companies, it is impossible to lay out the complete general structure.

How to design a circular organization chart?

Every day companies seek to create different schemes to avoid stiffness and leave behind outdated designs that allow degradation. and demotivation of their participants, therefore, models like this have become interesting alternatives that motivate their employees.

To design a circular diagram the following steps must be followed:

• Before starting to create a business outline, you must identify all the existing elements that have to make up the outline and those that will be placed in the concentric circle.
• Each of the levels must be represented by a hierarchical position.
• It is advisable not to place a large number of levels, to avoid a lack of understanding of the scheme.
• In the central part of the scheme, you can add the CEO of the company or also the client, this will depend on the business philosophy of the corporation.

Keys to the circular organizational structure

Each institution creates its own organization chart according to the function of its objectives, the relationships it has and the hierarchies that its participants understand. Next, some interesting keys will be mentioned to know what the circular organizational structure:

• In the case of this type of structure, the levels that have hierarchy must be shown by means of concentric circles from the inside out.
• In this way, the level of authority will be represented by a central circle, which corresponds to the person who has the greatest authority within the company.
• All the concentric circles that comprise the different levels of the organization must go around it.
• Within these circles, the immediate bosses should be placed and joined to them by means of lines the channels that carry out an authority and a responsibility will be introduced.

This type of structure is used many times in order to reduce the image of subordination that vertical schemes contain.