Types of Organizational Charts and How to Use Them
Organizational charts are useful for business enterprises, nonprofit organizations, educational institutions and governments. Regardless of the size of the organization, having a chart that outlines roles and reporting hierarchies is beneficial.
So, how are org charts used in real-world application? An organizational chart has five principal uses:
- To Show Management Structure
It shows the management structure of the organization at a glance. It can also show other organizational structures, such as relationships between companies with common or affiliated ownership.
- To Show Other Organizational Structure
Other hierarchies, such as business ownership structures, can be shown using org charts.
- As a Planning Tool
Org charts are used to visualize and plan company reorganizations.
- An Employee Reference
It provides a reference for employees to help them understand their role in the organization, who they report to, and who reports to them.
- An Employee Directory
Adding other information, such as headshots, telephone numbers and email addresses allows the org chart to also function as an employee directory.
Let's examine how org charts are used in more detail.