Organizational Charts

Organizational Charts: Exactly What Are They?

Purpose of an Organizational Chart

The organizational chart will show a diagram representing the structure of an organization. You might think of it as a map of the hierarchy of an organization. It helps show the people who are employees or people outside of the organization the people who are in the chain of command, and it is broken down into divisions. The organizational chart will help you decide who you are to speak to if a problem arises. The chart will also give baseline information to help managers to plan budgets and planning. It is an invaluable management tool.   I personally would compare an organizational chart to a mind map. They both summarize information and structures information.  

Limitations of What an Organizational Chart Communicates

A limitation of an organizational chart is that the chart will only show formal relationships within the organization and not the social relationship which is the human element of relationships between members of the organization.   Another limitation is that it shows nothing about the method of leadership that the manager will use within the organization. The final limitation is that the chart can be outdated very quickly due to changes in staff.   Furthermore, these charts can foster people in the organization to look at their jobs as having a limited scope.

Using an Organizational Chart for Strategic Planning

When it comes to understanding large amounts of information a chart is easier to comprehend for most people than as a table with names and numbers. An organizational chart can break down the components of the strategic plan. In healthcare organizations the strategic planning will focus on a mission statement, vision statement and a value statement. It takes a lot of time to do strategic planning and using an organizational chart helps to see things more clearly.


Understand Organizational Chart and How to Draw an...