WHAT IS AN ORGANIZATIONAL CHART? The definition of an organization chart or "org chart" is a diagram that displays a reporting or relationship hierarchy. The most frequent application of an org chart is to show the structure of a business, government, or other organization.
USES To Show Management Structure It shows the management structure of the organization at a glance. It can also show other organizational structures, such as relationships between companies with common or affiliated ownership. To Show Other Organizational Structure Other hierarchies, such as business ownership structures, can be shown using org charts. As a Planning Tool Org charts are used to visualize and plan company reorganizations. An Employee Reference It provides a reference for employees to help them understand their role in the organization, who they report to, and who reports to them. An Employee Directory Adding other information, such as headshots, telephone numbers and email addresses allows the org chart to also function as an employee directory.
FUNCTIONAL TOP-DOWN A functional, top-down organizational chart reflects a traditional business structure. This structure shows the C-Suite at the top, followed by other senior management, middle managers, and so on. In such an organizational structure, employees with similar skillsets and specialization are grouped together.
DIVISIONAL ORGANIZATIONAL CHART A divisional organizational chart reflects a company organized along a product line or specific geography. A company will use a divisional set up like this when one division is sufficiently independent from another, however this kind of structure can also add some accounting and other overhead.
MATRIX ORGANIZATIONAL CHART A matrix organizational chart reflects a company where employees are divided into teams by projects or product 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.
FLAT ORGANIZATIONAL CHART A flat organization structure will show few or no levels of management between executives and all other employees. This type of structure empowers self-management and greater decision making ability for every employee. It's most often employed by smaller businesses