What is an Organizational Chart

What is an Organizational Chart?

Organizational Chart is a visual representation of the structure of an organization, illustrating the relationships and relative ranks of its parts and positions/jobs. It depicts the hierarchy, showing how roles, responsibilities, and authority flow within the organization.

Key Features of an Organizational Chart

  1. Hierarchy: Shows the chain of command within the organization.
  2. Departments: Divides the organization into departments or units.
  3. Roles and Responsibilities: Clarifies the roles and responsibilities of each position.
  4. Relationships: Illustrates reporting relationships and lines of communication.

How an Organizational Chart Works

An organizational chart typically starts with the highest authority at the top, such as the CEO, and branches out to show the various levels of management and staff positions. It helps employees understand their role within the organization, who they report to, and who reports to them. This clarity can improve communication and operational efficiency.

Best Practices for Creating an Organizational Chart

  1. Clear Layout: Use a clear and simple layout to ensure the chart is easy to understand.
  2. Regular Updates: Keep the chart updated to reflect any changes in the organization.
  3. Accessibility: Make the chart easily accessible to all employees.
  4. Detailed Information: Include detailed information such as titles, names, and contact information if appropriate.


An organizational chart is important because it provides a clear picture of the organization's structure, helping to clarify roles, improve communication, and streamline decision-making processes.

An organizational chart should be updated regularly, especially after any changes in personnel, structure, or reporting relationships to ensure it remains accurate and useful.

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