Organizational Chart

When do you need an Organizational Chart?

A very small organization with a handful of longtime employees may function just fine without and organizational chart because "everyone knows" what their job is.

But, as any type of organization grows its number of employees and functions, confusion and differences of understanding can result. This is a sure sign it is time for an organizational chart (or "org chart" as it is sometimes called). There are several practical reasons:

• New employees joining the organization can quickly learn the landscape of who does what and who reports to who
• Any changes in the organization of personnel, responsibilities or growth can be clearly communicated throughout the organization
• It can provide general clarity and alignment for everyone in the organization on roles, responsibilities and authorities which can reduce confusions
• Org charts can be useful informational tools for others that need to understand your organization - banks, investors, foundations, customers

Keep it Simple

Organizational charts work best if they are one page with basic information of people and titles/roles so that the entire picture of the organization is understood. As an organization grows beyond one page it may need separate pages for each division for example.

Limitations

Organizational charts are not good tools to explain more complex factors about an organization. They are not a good method to explain the management style of an organization, how the organization operates and detail on roles and responsibilities.

Resources

1. Wikipedia:Organizational Chart provides general definition, background and history on organizational charts
2. OrgChart.net has detailed information on the how to of organizational charts for all sizes of organizations and a multitude of purposes.