{"id":247011,"date":"2025-05-19T08:56:27","date_gmt":"2025-05-19T08:56:27","guid":{"rendered":"https:\/\/peraltafinancing.com\/accounting\/what-is-an-organisation-chart\/"},"modified":"2025-05-19T08:56:27","modified_gmt":"2025-05-19T08:56:27","slug":"what-is-an-organisation-chart","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=247011","title":{"rendered":"What is an Organisation Chart?"},"content":{"rendered":"


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\"OrganisationIf your business is growing and you\u2019re increasing the number of employees, you may benefit from introducing an organisation chart to keep track of who everyone is, and what they all do.<\/p>\n

Organisation chart definition<\/h2>\n

An organisation (or organisational) chart is a structural diagram or graphic that shows how all the positions within a business are related. An organisation chart also outlines the roles and responsibilities of employees. It can show the company as a whole, or be broken down by department or team.<\/p>\n

Types of organisation chart<\/h2>\n

There are three main types of organisation chart.<\/p>\n

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  1. Hierarchical<\/li>\n
  2. Matrix<\/li>\n
  3. Flat<\/li>\n<\/ol>\n

    A hierarchical chart is the most common, and is a pyramid-shaped chart. In a hierarchical chart, each employee or department reports to a direct supervisor. They in turn report upwards until the chart ends with the boss. You can group your departments by their function, product or physical location depending on what suits your business.<\/p>\n

    Matrix charts look like a grid, and are mostly used for special projects. These are often used to manage employees that have more than one reporting line, but can also be used for cross-functional management. This could be employees who work on different parts of a project for different managers \u2013 like a web developer who creates the site for one manager, and updates it at the request of another.<\/p>\n

    Flat charts are suitable for small business with fewer levels between the upper management and the staff. If you only have handful of employees and no or few departments, then this simplified chart would suit you. Flat charts encourage less supervision and more collaboration from every employee.<\/p>\n

    Hierarchy of organisation charts<\/h2>\n

    The hierarchy of organisation charts is simple. The most senior member of staff goes at the top, then everyone that reports directly to them goes underneath.<\/p>\n

    In a flat chart, this might be the extent of it. It can go further in other types of chart, with senior managers reporting to the boss, middle managers reporting to the senior management team (SMT) and staff reporting to the middle managers.<\/p>\n

    When to use an organisation chart<\/h2>\n

    Usually, organisational charts are used by three key elements of the business:<\/p>\n