Business Organizational Chart Template

A Business Organizational Chart is a visual representation of the internal structure of a company. It details the relationships between different roles and departments, showing how authority and responsibilities are distributed. Organizations use these charts for management, strategic planning, and as a personnel directory to enhance communication and coordination.

Why should you use a business organizational chart?

Using a business organizational chart provides clarity and structure for your organization. By clearly outlining roles and responsibilities, it helps teams understand who oversees what areas, making it easier to identify key collaborators across departments. Organizational charts also enable efficient communication by showing who reports to whom and who to contact for specific needs. This can foster better collaboration, improve workflow, and ensure that the organizational structure aligns with your business’s objectives.

What are the different types of business structure charts?

Here are the four main types of business structure charts:

1. Functional Top-Down: This traditional structure organizes the company by specific functions or departments, such as IT, finance, human resources, marketing, sales, and operations. The C-Suite sits at the top, followed by senior and middle management, with teams grouped by similar skill sets.
2. Divisional: In this structure, a company is divided based on product lines or geographic locations. Each division operates independently and has its own functional structure, such as marketing and human resources, tailored to that division’s needs.
3. Matrix: The matrix structure allows employees to work on cross-functional teams, often reporting to both a product manager and a functional manager. This structure fosters collaboration and communication across different business functions, ideal for companies that operate in a project-based environment.
4. Flat: With little to no hierarchy, a flat organizational structure empowers individuals and teams to self-manage. This structure, though uncommon, removes most levels of middle management, encouraging a more collaborative and flexible work environment.

How to create a business organizational chart?

Creating a business organizational chart is straightforward. Follow these steps to get started:

1. Choose Your Structure: Start by determining the overall structure of your organization. Is it a traditional hierarchy, a divisional structure, or a flat structure? Once you’ve defined the setup, you can create a visual map of the relationships and connections between employees.
2. Gather Information: Collect details about employees, such as names, roles, and departments. Organize this information by categorizing it according to teams, functions, or locations within the company.
3. Build the Chart: Using customizable business organizational chart template, begin adding employee details. Arrange individuals and teams in alignment with your company’s structure. You can also add lines to represent reporting relationships and connections.
4. Share and Update: Once your chart is complete, share it with your team. Remember that an organizational chart is a dynamic document. Update it regularly to reflect any structural changes within the organization.

Following these steps will help you create a useful and accurate organizational chart for your business.

What is a company’s hierarchy?

A company’s hierarchy is the way employees are organized according to job function, department, location, and level within the organization.

What’s the best organizational structure for small businesses?

Small businesses can benefit from any of the organizational structures, including functional, divisional, matrix, or flat. An organizational chart for a small business primarily maps out the hierarchy to improve operations and overall efficiency.

What’s the difference between organizational structure and organizational chart?

Organizational structure outlines the business's core functions, such as marketing, finance, and product. An organizational chart, however, focuses on the people and their specific roles within those functions.