An organisation chart, also referred to as org chart, is a diagram which clearly reflects the structure of an organization. It clearly reflects the company’s structure which indicates the relations between all employees within the organisation.

Being a graphic representation of an organization’s structure, the organizational chart depicts the employer / employee relationship while it clearly indicates the lines of authority and lines of communication. The reason why an organizational chart is vital, is that it creates and defines the organizational structure, in order for the business objectives to be accomplished accordingly and successfully.

Therefore, a well-designed organizational chart is important to make planning easier and defining the organizational structure, culture and style while showing clearly the line of authority and of responsibility of each individual in the organization.

It also guides the employees as to whom they should report to in case of the issues that need to be resolved in a timely manner. There are different types of organizational charts but the objective behind creating the organizational chart is to illustrate the reporting relationship in an organization. Organization charts are the tools that enable us to understand how an organization works while it explains the structure of an organization as a whole.