What Is an Organizational Chart?
An organizational chart (org chart) is a visual representation of an organization’s structure that shows roles, reporting relationships, and how teams or departments connect. It helps employees and leaders see who is responsible for what, where authority lies, and how information flows.
Key Benefits
- Clarifies reporting lines and authority.
- Reveals departmental structure and responsibilities.
- Aids workforce planning, restructuring, and onboarding.
- Reduces ambiguity and improves communication across teams.
Common Types of Org Charts
Hierarchical (most common)
* Displays senior roles at the top and progressively lower-level roles beneath.
* Typical descending order: board/shareholders → CEO → C-suite → presidents/senior VPs → managers → staff and contractors.
* Works well for formal, centralized organizations (corporations, government agencies, large nonprofits).
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Flat (horizontal)
* Few or no levels of middle management.
* Emphasizes equality and decentralized decision-making.
* Suited to small teams, startups, or organizations seeking rapid collaboration and autonomy.
Matrix
* Employees report to more than one manager (e.g., functional manager and project manager).
* Connects teams and managers horizontally and vertically.
* Useful when resources and expertise are shared across projects.
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Divisional
* Organizes by product line, service, customer type, or geographic region.
* Each division operates like a semi-independent unit with its own resources and leadership.
* Common in large, diversified companies.
What an Org Chart Should Show
- Job titles and positions.
- Reporting lines (who reports to whom).
- Departments, teams, or business units.
- Cross-functional relationships when relevant (e.g., dotted-line reporting).
- Optional: employee names, locations, or headcount for each unit.
How to Create an Org Chart
- Define scope: whole organization, a division, or a team.
- Gather data: roles, reporting relationships, departments, and any cross-reporting.
- Choose a format: hierarchical, flat, matrix, or divisional.
- Use tools: diagram software, dedicated org-chart apps, or templates.
- Arrange senior roles at the top and place subordinates beneath; show lateral connections where needed.
- Review and update regularly to reflect changes in structure or personnel.
When to Use an Org Chart
- During restructures, mergers, or rapid growth.
- For onboarding and orientation.
- To clarify roles in project staffing or matrix environments.
- To communicate changes in leadership or department responsibilities.
Bottom Line
An organizational chart is a simple but powerful tool for visualizing how an organization operates. Choosing the right chart type and keeping it up to date improves clarity, supports decision-making, and strengthens communication across the organization.