Types of org chart
Charts can show positions, people or both. A position-based chart shows vacancies as empty boxes, while a people-based chart shows who actually sits in each role today. Pick the one that answers the question you are asking, and label it with the date it reflects.
- Hierarchical: a top-down tree, the usual format in Indian companies
- Functional: grouped by department, such as sales, operations and finance
- Divisional: grouped by product, region or business unit
- Matrix: shows a functional manager and a project or regional manager together
- Flat: few layers, with many people reporting to each leader
What an org chart is used for
New joiners use it to understand who does what. Managers use it to see team sizes and gaps. HR uses it to check that every employee has the right reporting manager, which decides where leave and attendance approvals go. Leadership uses it to spot layers that slow decisions, managers with too many or too few reports, and roles with no backup. During audits and due diligence, an accurate chart is one of the first documents requested.
Keeping the org chart current
Charts drawn by hand in slides go out of date within weeks, because people join, leave and move all the time. A chart generated from the reporting manager field in the HR system stays current, provided reporting lines are updated with every transfer and exit. ZeniaHR builds its org chart from reporting lines, with search, expand and collapse, direct and total team size, and flags for broken reporting lines, such as employees whose manager has left. For sample charts by industry, see org structures.
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What is the purpose of an org chart?
An org chart shows how a company is organized and who reports to whom. It helps employees find the right person, helps managers see team sizes and gaps, and helps HR make sure approvals and responsibilities follow the correct reporting lines. It is also used when planning restructures, preparing for audits and onboarding new joiners.
How do you make an org chart for a company?
Start with the head of the organization and list the departments or units reporting to them. Under each, add managers and then their teams, using the reporting manager recorded for each employee. Check for anyone without a manager or reporting to someone who has left. Generating the chart from HR records, rather than drawing it by hand, keeps it current.