Organizational Chart

AAA

DEFINITION of 'Organizational Chart'

A diagram that outlines the internal structure of a company. An organizational chart is the most common visual depiction of how an organization is structured. It outlines the roles, responsibilities and relationships between individuals within an organization. An organizational chart can be used to depict the structure of an organization as a whole, or broken down by department or unit.


An organizational chart is also called an org chart.

INVESTOPEDIA EXPLAINS 'Organizational Chart'

In general there are three types of organizational chart structures; hierarchical, flat and matrix. Hierarchical is the most common with higher ranking individuals situated atop the chart and lower ranking persons found below them. A flat or horizontal chart depicts individuals along the same level, not placing greater importance to an individual's title by placing them above any other individual. A matrix structure is more complicated, with individuals grouped by their common skill-sets but also by the groups in which they work and people they may report to.

RELATED TERMS
  1. Power-Distance Index - PDI

    An index developed by Dutch sociologist Geert Hofstede that measures ...
  2. Corporate Hierarchy

    The arrangement of individuals within a corporation according ...
  3. Corporate Culture

    The beliefs and behaviors that determine how a company's employees ...
  4. Organizational Structure

    Explicit and implicit institutional rules and policies designed ...
  5. C-Suite

    A widely-used slang term used to collectively refer to a corporation's ...
  6. BCG Growth Share Matrix

    A planning tool that uses graphical representations of a company’s ...
Related Articles
  1. Pages From The Bad CEO Playbook
    Retirement

    Pages From The Bad CEO Playbook

  2. The Basics Of Corporate Structure
    Investing Basics

    The Basics Of Corporate Structure

  3. The Path To Becoming A CEO
    Professionals

    The Path To Becoming A CEO

  4. 6 Steps To Successfully Switching Financial ...
    Options & Futures

    6 Steps To Successfully Switching Financial ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center