What is an organizational chart?

Definition

An organizational chart is a graphical representation of the hierarchical and functional structure of an organization. It shows the relationships between teams, departments, positions, and levels of responsibility. The chart makes it easy to visualize who does what, who reports to whom, and how functions are structured.

It is a simple yet powerful tool to understand the internal configuration of an organization, whether small or complex.

What is the purpose of an organizational chart?

An organizational chart serves several key functions:

• Clarifying roles and responsibilities
• Showing hierarchical and functional relationships
• Supporting the onboarding of new employees
• Assisting with succession planning and reorganizations
• Enhancing internal communication and coordination
• Strengthening organizational transparency

It is also often requested by external stakeholders (auditors, partners, investors) to evaluate governance structures.

Types of organizational charts

Several types of organizational charts exist, depending on needs and the desired level of detail:

• Hierarchical chart: traditional structure with clear lines of supervision
• Functional chart: structure based on departments or functions
• Matrix chart: employees report to two entities (e.g., project + department)
• Flat chart: horizontal structure with few hierarchical levels
• Dynamic chart: interactive digital versions integrated into HR systems

The format chosen depends on the organization’s type, size, and way of operating.

Why is it an HR issue?

Organizational charts often fall under the HR function because they:

• Reflect organizational strategy and structural choices
• Help identify overlaps or unclear responsibilities
• Facilitate role, title, and mandate assignments
• Support transformation, merger, or growth initiatives
• Provide clarity for both employees and managers

Conversely, an outdated chart can create confusion, fuel tensions, and slow decision-making.

How can an HR consultant help?

An external HR consultant can support the organization by:

• Analyzing the current structure and its challenges
• Creating or updating the organizational chart
• Clarifying roles and responsibilities linked to each position
• Identifying opportunities for simplification and alignment
• Facilitating discussions on governance and delegation

During times of change, a consultant can act as a neutral third party to structure the reflection process, guide decisions, and produce professional, useful charts.

In summary

An organizational chart is a visual representation of an organization’s internal structure. It is an essential tool to clarify roles, ensure transparency, and support human resources management. An external HR consultant can provide valuable assistance in designing or revising the chart, especially during growth or transformation phases.