An organizational chart is a visual tool that outlines management control and structure within a company. It shows reporting relationships and relative ranks between positions. Organizational charts are useful for communication, workforce planning, change management, and restructuring. They provide benefits such as displaying basic employee information, making large amounts of data easier to understand visually, and serving as a framework for managing change and planning.

1. Gabriel Guzmán Romero Human Resources
Universidad del Valle de México - Glion
Organization Chart
An organizational chart:
An organizational chart is a visual communication tool. Charts help to organize the
workplace while outlining the direction of management control of subordinates.
Increasingly a necessary management tool, organizational charts are particularly useful
when companies reorganize, embark on a merger or acquisition, or need an easy way to
visualize a large number of employees.
An organizational chart is a diagram that shows the structure of an organization as
well as the relationships and relative ranks of its positions.
Organizational charts are used for:
 organizational and supervisory communication,
 workforce planning,
 departmental or team planning,
 resource planning,
 change management,
 organizational restructuring or redesign, and
 job analysis.
Benefits of Organizational Chart
 Org chart can display basic information such as name and title, or details
such as department and cost center
 An org chart makes it easier for people to comprehend and digest large
amounts of information as a visual picture rather than as a table of names
and numbers.
 Provide the greatest value when used as a framework for managing change
and communicating current organizational structure.
 Provide managers with specific departmental information that can then be
used as a baseline for planning, budgeting and workforce modeling
 The charts typically are pyramidal in shape. They show the person in charge
at the top. Below them are clustered their subordinates, usually in
progressively smaller boxes. Usually, individuals shown on the same
horizontal level in the Org Chart are perceived to be "peers" within the
organization.