Business Organizational Chart Template
Develop a hierarchical guide to your business organizational structure.
Looking to define the organizational structure of your company? Use a business organizational chart to show the reporting and relationship hierarchy, increasing visibility and understanding across the company.
You can structure your business org in the way it makes sense for your company and goals. For example, some companies are more hierarchical, while others are more "flat" and based on teams.
About the Business Organizational Chart template
What is an organizational chart?
Organizational charts are used to map out and clarify the reporting hierarchy in a business. It shows the structure of the organization and relationship between various parts. Organizational charts are used for management, planning, or as a personnel directory.
Why should you use an organizational chart?
Many businesses use an organizational chart to clarify roles and responsibilities. Overall, organizational charts are helpful for building and designing an organizational structure that meets your business’s objectives. They map out relationships between staff members and teams, and show who reports to whom. Organizational charts empower employees to know their team members, learn about potential cross-functional collaborators, and understand who they should communicate with if they have a specific need.
What are the different types of business organizational structures?
There are four types of organizational structures.
Functional top-down - A functional, top-down organizational chart is what comes to mind when you think of the traditional business structure. The C-Suite sits at the top, followed by senior management, middle management, and so on. The chart is divided into familiar departments like IT, finance, human resources, marketing, sales, and operations. Teams and individuals with similar skillsets are grouped together.
Divisional - A divisional organizational chart is used by companies that are organized along product lines or geography. For example, in a computer company, the divisions may consist of Hardware, Software, and so on. Each division then has its own divisional structure such as marketing and human resources.
Matrix - A matrix organizational chart is for companies in which employees are divided into teams based on the product they’re working on, but they also report to a functional manager. These companies operate cross-functionally instead of within vertical silos. Many companies use a matrix organizational structure to foster collaboration and open communication.
Flat - A flat organizational structure contains little to no hierarchy. There are few or zero levels of management between executives and employees. This type of structure, although rare, empowers individuals and teams to self-manage.
How do you make an organizational chart?
First, determine the high-level organizational structure of your company. Is it hierarchical or more matrixed? Do individuals have multiple roles? Once you've determined this structure, it's easy to create a visual representation of how different employees are interconnected.
Business Organizational Chart
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