This article will explore what organigrams are, the different types you can use, how to create them, and real-world examples across various industries to help you build and maintain an effective organizational structure. With two-thirds of organizations having redesigned their operating models in the past two years, understanding these structures is more critical than ever.

What is an organigram?

Organigram definition

An organigram (also called an organizational chart or org chart) is a visual diagram that shows an organization's structure, hierarchy, and reporting relationships between employees, departments, and roles.

Purpose and functions

The primary purpose of an organigram is to provide a clear picture of the organizational hierarchy and reporting relationships. It helps:

• Clarify roles and responsibilities, a practice whose effects of role clarity are so powerful they are one of only four management practices (out of 37) that directly impact organizational health scores

• Enhance communication

• Facilitate strategic planning and resource allocation

• Identify gaps in the structure that may need addressing

Key components

Typical components of an organigram include:

• Positions or job titles

• Names of individuals in those positions

• Lines connecting the roles to show reporting relationships

• Departments or divisions within the organization

Types of org charts

While there are many ways to structure a company, most organigrams fall into one of four main categories. The best choice depends on your company's size, goals, and culture.

Hierarchical structure

This is the most common type, resembling a pyramid, with recent research showing that 89 percent of organizations still primarily use a traditional hierarchical structure. A single person or group is at the top, with a clear chain of command flowing down through multiple levels of management. It's common in large, established organizations.

Matrix structure

In a matrix structure, employees often report to both a functional manager and a project manager. This grid-like structure is increasingly common, and not just in project-based companies; one survey found that 84% of employees were at least slightly matrixed, meaning they work on multiple teams.

Flat structure

Also known as a horizontal structure, this type has few or no levels of middle management between staff and executives. It's common in startups and small companies, promoting greater employee involvement and faster decision-making, and research has correlated a higher contribution to firm sales with authority being delegated to local teams.

Divisional structure

A divisional structure organizes a company around separate divisions, each focused on a specific product, service, or geographical market. Each division operates like its own mini-company, with its own resources and functions.

How to create an org chart

Here's a step-by-step guide to create an effective organogram:

1. Define the scope and purpose: Clarify what you want to achieve with the organogram and ensure it aligns with your organization's goals.

2. Identify all roles and departments: List all positions and departments to ensure the organogram represents the entire organization accurately.

3. Determine reporting relationships: Establish who reports to whom to create a clear hierarchy and streamline communication.

4. Use organigram software or tools: Utilize specialized tools to design a professional and easily understandable visual representation of your organizational structure.

5. Review and update regularly: Regularly revisit the organigram to incorporate any changes in roles, departments, or reporting lines, ensuring it remains current and useful.

By following these steps, you can make an organogram that provides a clear picture of your organizational hierarchy, helping everyone understand their roles and responsibilities.

Examples of organigrams

Simple organigram examples

A simple organigram features a basic hierarchical structure ideal for small businesses and startups.

Key characteristics:

• Clear reporting lines: Direct chain from top management to entry-level employees

• Easy to understand: Straightforward structure with minimal complexity

• Quick onboarding: New employees can immediately see their role and reporting structure

Example: A small marketing agency might have a simple organigram with the CEO at the top, followed by the Marketing Director, then the Marketing Managers, and finally, the Marketing Associates at the bottom. Each level reports directly to the one above it, with no cross-departmental lines.

Complex organigram examples

Complex organigrams are common in large organizations with diverse operations.

Features include:

• Multiple hierarchy layers: Several levels of management and reporting

• Cross-functional teams: Employees from different departments working together

• Dotted line reporting: Shows dual reporting relationships in matrix structures

Example: A global tech company might have a complex organigram that includes a CEO at the top, followed by VPs for different regions (North America, Europe, Asia). Each VP oversees several directors for specific functions like Product Development, Marketing, and Sales, who, in turn, manage various teams. Additionally, project managers might have dotted lines connecting them to both the Product Development and Marketing directors, indicating dual reporting responsibilities.

Industry-specific organigram examples

Healthcare

Organigrams in healthcare show relationships between administrative staff, medical professionals, and support teams. These charts often highlight the connections between different levels of healthcare providers, such as doctors, nurses, and technicians, and administrative functions like billing and patient services.

Example: A hospital organigram might have the Hospital Director at the top, followed by departments like Surgery, Pediatrics, and Administration. Within Surgery, there could be layers including the Chief Surgeon, attending surgeons, residents, and surgical nurses. The Administration department might include HR, Finance, and Patient Services, each with its own hierarchy.

Technology

Technology organigrams emphasize project teams, product development cycles, and technical support hierarchies. They frequently showcase agile team structures, with project managers, developers, QA testers, and UX designers all interconnected to reflect collaborative work environments.

Example: A software development company might have an organigram with the CTO at the top, followed by teams for Front-End Development, Back-End Development, QA Testing, and UI/UX Design. Each team has a lead who reports to the CTO, and within each team, there are various specialists. The QA team might also have dotted lines to Product Managers, indicating collaborative reporting.

Manufacturing

Manufacturing organigrams detail production lines, quality control, and supply chain management. These organigrams illustrate the flow from raw materials to finished products, highlighting the roles of production workers, supervisors, quality assurance teams, and logistics personnel.

Example: A manufacturing company might have an organigram starting with the CEO, followed by divisions such as Production, Quality Control, and Logistics. The Production division could include managers for different production lines, each overseeing shift supervisors and production workers. The Quality Control division might include a Chief Quality Officer, under whom are various quality inspectors and testing teams. The Logistics division would have managers for Shipping, Receiving, and Inventory Control, each with their respective teams.

Benefits of org charts for business

Creating and maintaining an organigram offers several key benefits that improve clarity, communication, and strategic planning across the business.

• Improved clarity and transparency in roles and responsibilities: This helps employees understand their own duties and those of their colleagues, reducing confusion and overlap in tasks.

• Enhanced communication channels: Clear reporting lines streamline communication, ensuring that information flows efficiently throughout the organization.

• Easier identification of staffing needs and organizational gaps: By visualizing the current structure, businesses can quickly spot areas that need additional resources or reorganization.

• Better planning for growth and succession: Organigrams enable strategic planning, which is crucial as research indicates that a 30 percent gap between strategy and delivery can be attributed to shortcomings in a company's operating model.

Building your organization's knowledge foundation

While org charts map reporting structures, modern teams need broader access to company knowledge.

Guru creates an AI source of truth by connecting your sources and permissions into one company brain. Teams get trusted, permission-aware answers through a Knowledge Agent in Slack, Teams, and browsers. When information changes, experts can correct it once and updates propagate everywhere. Watch a demo to see how you can build this trusted layer of truth.