Corporate organization chart: the keys to a clear, efficient organizational structure

A good organization chart is like a GPS for your company. You gain clarity and your teams no longer get lost! 🎯

A company organization chart does more than just show "who does what". It's a strategic tool that optimizes internal communication and reinforces transparency. And if you think only big companies like Amazon need one, think again.

From small start-ups to global giants, every organization has everything to gain from a well-structured relationship. Let's find out how to leverage this tool to transform your day-to-day management.

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What is a corporate organization chart?

Corporate organization chart: definition

A corporate organization chart is a graphical representation of a company's hierarchical and organizational structure.

It highlights the relationships between different roles, departments and levels of responsibility, making it easier to understand internal interactions, and by extension, human resources management.

🔵 An organization chart is made up of several key elements, each with a specific role:

• Boxes or circles, as it were "boxes" containing the names, positions and functions of personnel. They help to identify who occupies which role within the company, and ensure clear visibility of each employee's responsibilities and tasks.
• Connecting lines link boxes or circles to indicate hierarchical or functional links between employees and departments.
• Titles for roles and departments: each section of the organization chart is often grouped under a title to visually segment organizational units, making them easier to read.
• Hierarchical levels are represented by the vertical or horizontal arrangement of boxes. They show the distribution of responsibilities and the decision-making weight of different positions.

What is the purpose of an organization chart? In a nutshell: to clarify roles and responsibilities, optimize internal communication, and support strategic planning. More on the advantages and disadvantages of the organizational chart later. ⤵️

What is the purpose of an organization chart?

The main purpose of an organization chart is to provide organizational clarity: it shows who does what within the company. For example, an employee immediately knows who is responsible for his or her department, or which department to contact to resolve a specific issue. This visualization eliminates ambiguities and reduces overlapping roles, particularly in companies where several teams are working on similar projects.

💡Other benefits of the organizational chart include:

• improved internal communication, by visually linking services and departments. Example: a marketing department employee wants to obtain financial information. He'll know who to contact directly in the accounts department, without having to go through several unnecessary intermediaries.
• better integration (onboarding) of new arrivals, since recruits can quickly understand where they stand within the company.
• greater transparency and trust: employees know exactly who they are accountable to, and avoid any doubts about their tasks. This strengthens the sense of belonging and cohesion within the company.
• decision-making support for managers: for example, by identifying duplication in certain departments, they can restructure or allocate resources where they are really needed, thereby supporting the company's growth.

☝️ But beware, organization charts also have a few limitations:

• They don't always adapt to changing environments. In a start-up, where roles evolve rapidly, a fixed structure can become obsolete in a matter of months.
• In large companies, they can quickly become unreadable.
• They need to be updated regularly. Every change in the structure must be integrated to avoid confusion. If an employee is promoted or a department merges, the organization chart must reflect these changes immediately.

Is it compulsory to create an organization chart?

In France, legislation does not require companies to create an organization chart. ✅

However, this tool, although optional, offers many advantages in terms of internal communication and human resources management. So, even without a legal obligation, the adoption of an organization chart is strongly recommended to optimize organizational efficiency.

The different types of organization chart

Hierarchical organization chart

The hierarchical organization chart, often referred to as the "pyramid" chart, offers a clear, stable structure. Each employee knows precisely to whom he or she reports. This model is ideal for organizations that emphasize stability, process control and well-defined responsibilities.

🎯 Example of use: An industrial company like Toyota, where each department (production, quality, logistics) operates separately but is interconnected, benefits from this model to ensure strict process control.

☝️ Limitations: This structure can hamper horizontal communication and limit innovation, prompting some companies to supplement it with more flexible models.

Matrix organization chart

The matrix organization chart encourages cross-functional collaboration. It links employees to several managers, such as a project manager and a functional manager, improving flexibility and responsiveness.

🎯 Example of use: An advertising agency, such as Publicis, could use a matrix organization chart for its creative teams. A designer could answer to both an art director for style questions and a project manager for deadlines.

☝️ Limitations: Dual hierarchies can lead to conflicting priorities. Clear communication between managers is essential.

Flat organization chart

This model values direct communication and rapid decision-making. By eliminating intermediate levels, it promotes a culture of autonomy and agility.

🎯 Example of use: a tech startup like Slack in early development, where every team member actively participates in decisions.

☝️ Limitations: Without formal oversight, overlapping responsibilities can arise. Role clarity is crucial to its effectiveness.

Cloverleaf and circular organization charts

These innovative organization charts move away from traditional structures to emphasize flexibility and customer-centricity. The cloverleaf model is based on autonomous teams, while the circular model puts the customer at the center of decision-making.

🎯 Example of use: a company like Zappos, which values self-management and puts the customer at the heart of its organization, can benefit from a circular organizational chart to reflect its priorities.

☝️ Limitations: These unconventional models require organizational maturity to function effectively.

Standardized organization chart

Conforming to international standards, this chart guarantees a rigorous, uniform presentation of the organizational structure. It is particularly useful in highly regulated industries.

🎯 Example of use: a pharmaceutical company like Pfizer uses a standardized flowchart to meet regulators' requirements and ensure clear, accessible documentation.

☝️ Limitations: Although very clear, this model can lack flexibility and prove too rigid for structures undergoing rapid transformation.

How to draw up a company organization chart in 6 steps?

1. List all company functions

Start by listing all the positions and functions present in your organization. This step ensures you don't forget anything - or rather, anyone 👥 - and lays the foundations for your organization chart.

Our tip: include all departments, teams and subdivisions, even those that seem obvious.

Example: if you're in an SME, you could list functions such as "Sales Manager", "Support Technician", or "HR Assistant".

This comprehensive list ensures that each position is fairly represented in your diagram.

2. Define the responsibilities of each role

For each function identified, clarify the main responsibilities and missions associated with it. This helps avoid overlap and reinforces understanding of the roles.

Example: A "Marketing Manager" might be responsible for digital strategy, managing advertising campaigns and monitoring KPIs.

See also: How to create the perfect job description + template and example

3. Map hierarchical relationships

Next, establish the relationships between each role and position. Who reports to whom? Who are the direct and indirect managers? Organize roles in a pyramid or matrix, depending on your structure.

Example: In an IT department, a "Developer" might report to a "Project Manager", who in turn reports to the "Technical Director".

A clear representation of hierarchical relationships avoids ambiguities and improves internal communication. 🤝

4. Add cross-functional relationships

Don't forget to represent cross-functional relationships for a complete view. These connections indicate employees reporting to several managers or working in conjunction with other departments.

Example: A "Project Manager" may collaborate with the marketing department on one campaign and report to the technical department on another.

5. Formatting the organization chart

Once you've collected your data, use a dedicated tool like Canva, Lucidchart, SmartArt or a simple Excel spreadsheet to create your organization chart. Adopt a clear, aesthetic layout:

• Use colors to differentiate departments. 🎨
• Use simple, uniform shapes (rectangles, circles).
• Add legends or annotations if necessary to clarify certain points.

6. Update regularly

A static flowchart quickly loses its relevance. Schedule regular revisions, especially in the event of organizational changes. Set an update frequency (e.g. quarterly) to keep the flowchart up-to-date and useful.

Example: In the event of promotion, new hiring or restructuring, adjust the organization chart immediately.

Organization chart examples: Google

The organizational chart of tech giant Google illustrates a complex hierarchical structure adapted to its multiple divisions and departments. At the top, CEO Sundar Pichai oversees the company's main branches, each headed by a high-level executive. For example:

• Thomas Kurian is responsible for Google Cloud, a strategic division for the company.
• Neal Mohan heads YouTube, the major video platform.
• Fiona Cicconi is in charge of human resources as Chief People Officer.

This organization chart, which you can view below, shows an organization by functions and departments, with people in charge of specific areas such as search, advertising and product innovation. This structure enables Google to operate efficiently despite its size, by delegating the management of divisions to specialized leaders.

What's the best tool for creating an organization chart?

An Excel or Word template for a (very) small company

For a very small company or SME, an Excel template or Word document, many of which are available free of charge on the Internet, may suffice. These office tools offer basic functionality for creating simple organization charts.

You can use shapes and connectors to represent your structure clearly, without the need for advanced technical skills.

☝️ However, as your company grows, these tools quickly show their limits. Every change, such as a promotion, hiring or transfer, requires manual updating. This is feasible for a small team, but with a more complex organization, it becomes time-consuming and unreliable.

Use dedicated organization chart software

For medium-sized to large structures, it's best to opt for dedicated software such as Lucidchart, Visio or Canva. These specialized solutions are designed to handle complexity and offer advanced options.

For example, you can work on the flowchart at the same time, with several people: ideal for companies with remote teams or fast-moving projects.

These programs also offer a library of customizable templates, adapted to the needs of different sectors. And there's no need to update everything manually: some of these solutions integrate with HR or project management software, synchronizing data so that the organization chart stays up to date automatically. 👏

If your company already uses the Microsoft suite, Visio can be an excellent choice thanks to its easy integration with Office 365. For a more creative and visual approach, Canva is ideal and remains affordable. If you have a penchant for automation, then you'll be more seduced by Lucidchart.

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A company organization chart: a strategic asset for structure and communication

A well-designed company organization chart is much more than a simple hierarchical diagram. It brings clarity, structure and fluidity to internal communication, helping each employee to situate his or her role and understand the interactions between departments.

For human resources, it becomes a strategic lever. By visualizing skills requirements and facilitating succession planning, the organization chart supports better talent management. In the face of frequent reorganizations, it provides a solid basis for adapting the organization to change.

In short, the corporate organization chart is an evolutionary tool which, properly used, can transform organizational culture and reinforce growth.