What is an organizational chart?

An organization chart of a company is the visual representation of it’s reporting structure. It defines the employee relationship hierarchy of an organization and the alignment matrix of teams.

Org charts illustrates employee designations, reporting managers and more. Visually, they are a bunch of boxes and lines: boxes represent people, lines represent reporting relationships and operating levels.
Its purpose is 
to illustrate the reporting relationships and chains of command within the organization. Employee names and titles and/or job positions are generally depicted in boxes or circles with lines linking them to other employees and departments.


 

Org charts come with a host of benefits. While they are good for succession planning and onboarding new hires, they also serve as a simple, reliable people directory for an employee’s reference. Organizational charts are used for:

Workforce planning

Org charts give you the ability to anticipate skill and talent gaps, future staffing needs, leadership/ management needs, teams or functions that require training, etc.

Communicating reorgs

People relationships

The ability to add people profiles to your organizational charts puts faces and sometimes even a personality to names. So your people can learn about each other, find friends with similar interests, find conversation-starters, and more.

New hire onboarding

Organizational charts are a great way to show your new hires what your company’s reporting structure looks like, who the leaders are and what they do, who’s who, who to reach out to for what, who their colleagues will be, and more.

Budgeting

Inspiring employees

  • An organizational chart gives a clear picture to all employees - starting from new joiners to experienced managers - where they are placed on the organizational ladder.

Use Wondershare Edraw to make organizational charts.

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