An organizational chart is diagram of employees. The chart details the hierarchy in a company, showing who reports to whom. The chart is designed in a pyramid format. The top level of an organizational chart is the president or CEO of the company, followed by a level of upper management employees. The next level lists the names of middle management supervisors, followed by employees. A description of employee responsibilities can also be added to the document. Organizational charts are an excellent strategic planning tool.
Determine the hierarchy levels and employee responsibilities within your company. Gather all employee information before beginning your diagram. Supervisor names, names of those who report to those supervisors, titles, and brief job descriptions are the minimum needed for a basic chart. You can also add salary, tenure and education for each employee.
Download a template to help you design an organizational chart for your company. Insert the names and job responsibilities in the appropriate spaces (see Resources for template links). Begin with the president or CEO at the top level and continue to fill in the chart with upper and middle management levels, showing the employees directly under the supervisor.
Distribute the organizational charts to your employees. Organizational charts give everyone a complete picture of the company's employee structure. The chart can be used for managing personnel decisions, future planning and budgeting. The chart is a valuable tool for management and employees as well. Employees will know at a glance who is a supervisor of a particular department and which employees fall under that supervisor's responsibilities.
Software programs are available that will automatically pull information from your human resource database to ease in the creation of organizational charts (see Resources.)