Organizational Chart


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.

BREAKING DOWN '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.

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