![]() Consider a company like General Motors and how they might create divisions based on each product type like sedans, sports cars, trucks, and SUVs. Divisional structureĪ divisional organizational chart represents a business that is organized by product lines or geographical locations. They show everyone’s role within the organization and all employees are grouped by their similar roles. These org charts are often divided into departments like sales, marketing, and IT. C-level executives go at the top, senior management is represented next, then middle management, and so on. This type of org chart is the most common kind and represents a traditional business structure. You can use org charts for storing other information or as an employee directory, including names, telephone numbers, and email addresses. You can use an org chart as a reference for employees to help them understand who they report to, who reports to them, and their greater role within the larger organizational framework. You can use org charts to plan and visualize a project or a company’s reorganization efforts. You can show use an organizational chart to show other hierarchies, such as business ownership structures. Used to show other organizational structures You can use an org chart to see, at a glance, the management structure of an organization or other organizational structures like relationships between companies with common ownership groups. ![]() Represent other types of information like a business entity or data hierarchyĪn organizational chart also has five principal uses that overlap slightly with benefits listed above but may also add some context.Create a visual representation of an employee directory.Improve communication between various parties.Help employees have a better understanding of how their role fits into the broader organizational objectives.Help leaders manage others more efficiently.Show reporting relationships or work responsibilities Your company or organization can benefit in many ways from incorporating org charts. ![]() Org charts can serve many purposes, from management tool to project planning to personnel directory. You can use them to show the relationships of one individual to another, one department to another, or the various functions within an organization. Org charts are used for many reasons and they can be structured in many ways. But in the simplest terms possible, it’s a way to structure hierarchical information in an easily digestible way. A hierarchical org chart uses a top-down approach, branching out the further down it goes. There are also matrix org charts and flat org charts, but for our purposes today, we’re going to mostly focus on hierarchical org charts as they are the most common and what most organizations need and use.Īn org chart can outline the structure of a government, business, or organization or it can represent different elements of a field of knowledge. What are org charts?Īn org chart, or organizational chart, is a diagram that is a graphical representation of a reporting structure or relational hierarchy that ranks its parts or positions. You can spend 20 minutes reading about the hierarchy or flow of information for an organization or project, or you can spend 10 seconds looking at a diagram. Have you ever heard that a picture is worth a thousand words? That sums up today’s topic: org charts.
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