Organizational Chart

An organizational chart (also called org chart, organigram or organisational chart) is graphical representation of the structure of an organization. An org chart helps people to quickly understand the hierarchical relationships between entities within an organization. Example of entities include people, positions, departments, cost centers, business units and sales territories.

The most common example of an organizational chart is a company org chart. A company org chart typically illustrates the supervisory relationships between people within an organization.

Top reasons for creating org charts include:
  • Employee Communication – Org charts provide a simple method of communicating organizational structure to employees. This is especially important for onboarding new employees and for communicating change (for example, reorganizations or promotions).
  • Organization Efficiency – Employees can more efficiently perform their job function if they understand the structure of their organization. Quickly being able to identify a resource (or alternate resource) helps to increase the overall efficiency of an organization. Also understanding the “chain of command” can lead to quick resolution of challenges that require guidance from management.
  • Organizational Design (also called Organizational Planning or Workforce Analysis) – Org charts can be used to analyze, restructure or create a business function or project team. Organizational designers need to balance many factors (for example, budget, headcount, span of control, job responsibilities, work volume and required skills) as part of any initiative. Creating multiple scenarios (in the form of org charts) helps organizational designers to experiment with different variables and methodologies as they work toward a final proposal.
  • Project Teams – Projects teams are typically employees from different functional teams that are engaged toward a common outcome. Project team org charts promote team effectiveness and provide project managers with an effective tool for communicating team structure with management and other interested parties.
  • Organizational Change Initiatives – Change initiatives often stall due to lack of communication with stakeholders. Effective change practitioners use tools such as org charts to break down communication barriers which in turn leads to more successful outcomes.

Classic Org Chart
Classic Org Chart

Project Team Org Chart
Project Team Org Chart

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