What is an organization chart?
An organizational chart is a diagram that visually transmits the internal structure of a company, detailing the roles, responsibilities and relationships between individuals within an entity. Organizational charts generally describe a company on a company scale or explore a specific department or unit.
Organizational charts are also called “organizational charts” or “organizational charts”.
Key points to remember
- An organigram is a diagram that visually transmits the internal structure of a company by detailing the roles, responsibilities and relationships between individuals within an entity.
- Organizational charts generally describe a company on a company scale or explore a specific department or unit.
- Most organizational charts use the “hierarchical” model, which places the highest ranked individuals at the top of the organizational chart and positions the lowest ranked individuals below them.
Understanding the organization charts
Organizational charts graphically display the hierarchical status of an employee compared to other people within the company. For example, an assistant director will invariably fall directly below a director on the graph, indicating that the former reports to the latter. Organization charts use simple symbols such as lines, squares, and circles to link different related job titles.
Types of organizational charts
Organizational charts are constructed in three main formats.
This most common model places the highest ranked individuals at the top of the graph and positions the least well placed individuals below them. For example, a public company usually displays the shareholders in the highest box, followed by the following in descending vertical order:
- Chairman of the Board of Directors
- Vice-president of the board of directors
- Board members
- President and CEO
- Other C-suite frames (connected to each other by horizontal lines)
Other job titles that may follow c-suite frameworks include:
- Senior Vice President
- Vice President
- Assistant Vice President
- Senior Director
- Assistant Director
- Executive assistant
- Full-time employees
- Part-time employees
- The entrepreneurs
Organizational hierarchies generally depend on the industry, the geographic location and the size of the business.
Also known as a “horizontal” chart, the flat organization chart positions individuals on the same level, indicating more equality of power and independent decision-making capacity than is typical for employees in reporting companies.
There is not one correct way to shape an organization chart, as long as it places the main managers, departments or functions at the top of the page, with the others below, in descending order.
This more complex organizational structure groups people according to their common skills, the departments in which they work and the people to whom they can report. Matrix tables often interconnect employees and teams with more than one manager, such as a software developer working on two projects, one with their usual team leader, and another with a separate product manager. . In this scenario, the matrix graph connects the software developer to each manager they work with, with vertical lines.
Regardless of the structure of a business, organizational charts are extremely useful when an entity plans to restructure its workforce or change its management complex. Most importantly, organizational charts allow employees to see transparently how their roles fit into the overall structure of the business.