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Organizational chart is a pictorial representation of the company's structure and reporting relationships. The chart prepared can be a great deal of information and also helps in the orgnizational members to understand the overall structure of the orgnization and its strategy.The charts have some similar elements that can allow the business to get easily understood and interpreted by the people inside and outside the organization.



The chart shows relationships between staff in the organization which can be:

  • Line - direct relationship between superior and subordinate.
  • Lateral - relationship between different departments on the same hierarchical level.
  • Staff - relationship between a managerial assistant and other areas. The assistant will be able to offer advice to a line manager. However, they have no authority over the line manager actions.
  • Functional - relationships between specialist positions and other areas. The specialist will normally have authority to insist that a line manager implements any of their instructions.

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Q: Why are organizational charts important?
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