HR Glossary
Organization Chart

Organization Chart

Updated on:
August 22, 2022


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Table of Content

What is an Organization Chart?

An organization chart is a diagram that shows the relationships between people, departments, or teams within an organization.

It can be especially helpful in showing how power flows through an organization, including the report-level structure of an organization.

Organization Chart are often used in strategic planning, during organizational change, and for communication purposes.

What Is Typically Included In An Organization Chart?

An organisation chart usually includes the following essential information:

  1. People’s names
  2. Their job titles
  3. Direct reporting lines, i.e. who manages whom (represented as a straight line)
  4. Indirect reporting lines i.e. instances where individuals report into multiple people (represented as dotted lines)
  5. Divisions or sections of the company, and how these are broken down.

What makes organization charts necessary?

Organizational charts are necessary for a variety of reasons. They help individuals understand the chain of command within an organization, and they can also be used to help individuals understand what positions are available within an organization. Additionally, organizational charts can help individuals understand how an organization is structured and how it operates.

How Do You Create An organization chart?

  1. Format the chart to fit on a single page.
  2. Group people with the same title into one box.
  3. Make all boxes the same size and space them evenly.
  4. Show assistants with a side bar below the manager.
  5. Put the title of the position first, then the name of the person occupying it.