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What is Organizational Charting?

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Organizational charting is the process of creating charts that describe the administrative and functional structure of an organization or business. It is a graphic presentation of the relationships and interrelationships within an organization that identifies the lines of authority and responsibility. An organizational chart usually shows the executives, directors, managers and subordinates which make up an organization, as well as relationships between staff in the organization.

Organizational charts are not just for seeing who's above and below you in the company. They are vital for effective communication and crucial in times of reorganization. It is a common perception that information can be better understood in visual form rather than verbal or written form. Organizational charting provides an insightful and concise method to communicate organizational structure to executives, managers and employees at all levels. It is also possible to use an organizational chart as a management tool to further the success of your organization's goals.

In many large companies the organizational chart can be large and complicated and consequently is sometimes dissected into smaller charts for each individual department within the organization. Employers today continuously require an up to date view of their organization to meet planning and employee management objectives. Frequently, there is also a need to communicate organizational structure internally to cultivate teamwork and goodwill. While many organizations have some version of an organizational chart, most businesses do not realize the full potential and value a chart can provide. Nor do they realize that organizational charts are a highly effective tool for employee modeling and situation planning.

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