What information is communicated in an Organizational Chart?

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Organizational charts regularly communicate:

• Leadership
  
• Organizational units or divisions
  
• Culture as indicated by the horizontal or vertical character of the organization and comparative placement of various functions
  
• Names and responsibilities of individual employees
  
• Reporting relationships and dependencies
  
• Location
  

Charts may also contain:

• Contact information
  
• Financial information such as general ledger cost codes
  
• Confidential employee information such as salary, start date, age or gender
  
• Summary information such as headcount, budgets or sales quotas
  
• Analytical information such as ratios of gender, race, age, or tenure
  

Organizational charts facilitate:

• Strategic decision support
  
• Compliance – executive and statutory
  
• Budgeting
  
• Operational and logistical planning
  
• Knowledge management – productivity and efficiency improvement from availability of information
  
• Empowerment, teamwork, orientation, career and succession planning
  

Next Page: What are the steps to creating an Organizational Chart?

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