How to make an effective organizational chart

No matter what design challenge you're taking on, your team needs context—starting with organizational structure. Once you understand organizational roles and responsibilities, you can achieve efficient workflow, clear communication, and informed decision-making. But with many companies shifting to hybrid remote and in-person teams, it's not always easy to tell who's doing what on a project.

Organizational charts can help dynamic teams flex roles and navigate responsibilities. Read on to find out:

• What is an organizational chart and when to use one
• Key benefits of organizational charts
• How to make your own with FigJam's organizational chart templates

What is an organizational chart?

An organizational chart (also known as an org chart, organogram, or organigram) is a visual representation of a company's internal structure. At a glance, you can see roles, responsibilities, and relationships across an organization.

Org charts came into use during the industrial revolution, and they're still evolving to reflect new types of organizational structures. Picture a startup where everyone pitches in when needed, no matter their rank. A flat organizational chart sharing team roles can boost collaboration and prevent overlap.

4 key benefits of organizational charts

Getting a bird's eye view of your company structure helps you understand the chain of command for decision-making. That way, you can involve key players and communicate across different departments. Updated organizational charts help capture changing players and roles in real time, helping your team in four key ways.

• Clarify the chain of command: Hierarchical structures aren't always obvious in modern organizations. But to get approvals, you need to know who's in charge of what. Org charts get everyone on the same page, in large organizations and small startups alike.
• Promote communication: With teams spread out across offices and time zones, you might not know who to go to for what. Org charts capture names, roles, and contact information, facilitating effective communication.
• Aid decision-making: Leaders can consult org charts to make informed choices when delegating work, distributing resources, and managing performance.
• Capture changes in reporting relationships: When a company is restructuring or expanding, org charts can capture how these changes impact employee roles and responsibilities. Clear, updated org charts help make transitions smoother and more transparent.

When to use organizational charts

Organizational charts make team planning and collaboration easier, especially at four crucial moments.

• For budgeting: Say your team takes on a new project. Who on your team has bandwidth for extra work? Do you need to hire contractors or outsource work? A glance at an org chart can help you see who you need to fill key roles, so you can allocate resources to meet project goals.
• During hiring and onboarding: An organizational chart helps human resources teams spot staffing gaps and hire new employees to meet changing needs. During onboarding, these visual aids help new hires understand their responsibilities, meet their teams, and settle into their roles.
• In project management: Project managers use organizational charts to manage resources across projects. Org charts help managers figure out who's the best fit for tasks, who reports to whom, and who grants approvals.
• In company restructuring: Updated organizational charts are crucial to guide teams through major changes. Teams rely on them to grasp their changing responsibilities, new reporting relationships, and how they fit into the big picture.

4 key types of organizational charts for modern organizations

What type of org chart is the best fit for your organizational structure? That depends on your company’s size, goals, and culture. Try on the four popular org chart examples below, and you may find a close fit.

1. Hierarchical org chart

Hierarchical organizational charts are especially common in large companies and government departments. Here the flow of authority and responsibility is often top-down—from the C-suite to the most junior employees, and from the presidential cabinet to aides. Leaders sit at the top, with support staff ranked in tiers below.

2. Flat org chart

Flat or horizontal organizations typically have fewer layers of middle management, so their charts have fewer layers and employees have more autonomy. Flat org charts are popular among startups and small businesses for tight teamwork and quick pivots. Entry-level employees may report directly to top management and have direct relationships with vendors.

3. Matrix org chart

A matrix organizational chart groups employees into departments by skill and role. A matrix structure makes sense for many creative teams, who handle multiple projects simultaneously for different teams and project managers. In these cases, rank and title are less relevant than skillsets and assignments. For example, a designer’s time may be allocated by a creative director to projects across departments, from product to marketing.

4. Divisional org chart

A divisional structure (or multi-divisional form) is often divided into geographic regions or product lines. Each division has autonomy, while still working towards shared organizational goals. For example, a global brand could have international divisions with unique org charts, while maintaining global brand standards and company values.

How to make an organizational chart in 5 steps

Create an organizational chart to understand roles and manage resources with this step-by-step guide.

Step 1: Define the purpose of your org chart.

Is your goal to improve communication, streamline decision-making, or manage organizational change? Jot down your goal as a reminder of what you're trying to capture and why.

Step 2: Choose the appropriate org chart type.

Browse org chart templates to find the best fit for your project purpose and organization's structure. Choose from hierarchical, flat, matrix, or divisional structures.

Step 3: Collect organizational data.

Gather names, job titles, and reporting relationships to fill in your template with key details. Job descriptions, the employee directory, and previous organizational charts can help.

Step 4: Get creative with online tools.

Make your org chart modern and memorable with online tools, including this popular org chart widget.

Step 5: Update regularly.

Keep your org chart current to reflect changes in your organization. An outdated chart can lead to confusion, while an updated one promotes transparency.

Pro tips for an effective organizational chart

Apply these tips to excel at org charts:

• Incorporate handy details. Boost transparency and usability with useful employee info, such as contact information, photos, and department functions.
• Use color coding. This simple trick makes departments and roles easy to tell apart at a glance—and makes your chart more memorable and appealing.
• Make it easy to find. Upload your org chart to a shared drive, intranet, or a tool like FigJam.

Jumpstart your organizational chart with FigJam

Boost transparency and collaboration with compelling, accurate organizational charts created with FigJam's online collaborative whiteboard. Use it to:

• Brainstorm, design, and chart reporting structures
• Guide project team members to success with clear roles and reporting lines
• Explore design options to add brand elements to your organizational chart
• Browse org chart examples from the Figma community

Ready to design clearer roles and responsibilities?