An organisational chart is a visual diagram that shows a company’s structure, reporting relationships, and hierarchy.
It illustrates how teams are arranged, who reports to whom, and how different departments connect.

Organizational charts help employees understand their roles, improve communication, and provide a clear view of the company’s chain of command.

Why Organizational Charts Matter

• Clarify Roles and Responsibilities – Everyone knows their place in the organization.
  
• Improve Communication – Employees know the right channels for questions or concerns.
  
• Support Workforce Planning – Helps HR identify staffing needs and reporting gaps.
  
• Aid in Decision-Making – Leaders can visualize departmental relationships.
  
• Facilitate Onboarding – New hires quickly learn company structure.
  

Types of Organizational Charts

1. Hierarchical Chart – Traditional top-down reporting structure.
   
2. Matrix Chart – Employees report to multiple managers across projects.
   
3. Flat Chart – Few levels of management, encouraging collaboration.
   
4. Functional Chart – Groups employees by department or skill set.
   
5. Divisional Chart – Structures based on products, services, or regions.
   

Best Practices for Creating an Organizational Chart

• Keep charts updated to reflect changes.
  
• Use clear job titles and department names.
  
• Choose the chart type that best fits your business model.
  
• Make charts accessible to all employees.
  
• Include photos for better recognition in larger organizations.
  

FAQs: Organizational Chart

Q1: What software is best for creating organizational charts?
A: Tools like Microsoft Visio, Lucidchart, and Canva are commonly used.

Q2: How often should an organizational chart be updated?
A: Whenever there are staffing or structural changes—ideally quarterly.

Q3: Are organizational charts only for large companies?
A: No—small businesses can also benefit from visualizing their structure.

Q4: Can an organizational chart include contractors and freelancers?
A: Yes, if they are part of key workflows or team structures.

Q5: Should organizational charts be shared externally?
A: Typically they are for internal use, but some companies share simplified versions publicly.