Organizational chart guide: Types, steps & templates
Summary
Organizational charts help you visualize where you and your team members fit within your company's structure. Also known as an organogram, an org chart outlines your team structure and illustrates reporting relationships between roles.
In this guide, we'll cover what an organizational chart is and why it matters, walk through the different types of org charts, explain how to create one step by step, and provide free organizational chart templates to help you build your own.
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What is an organizational chart?
An organizational chart (also called an organogram or org chart) is a diagram that maps out your company's internal structure, showing roles, reporting relationships, and how teams and departments connect. It gives you a clear visual of how your organization is set up, from top leadership to individual contributors.
A typical org chart includes a few key components:
Roles and titles: The names of jobs or positions people hold within the company.
People: The individuals in each role, sometimes including names or photos.
Lines and connections: Visual links that show who reports to whom.
Departments or teams: Groupings that organize roles into sections like marketing, sales, or customer support.
The idea of organizational charts originated in the mid-1800s, when railroad engineer Daniel McCallum created one of the first to manage complex operations. Today, org charts have moved from paper to digital tools that teams use together.
Why organizational charts matter
No matter your company’s size, an organizational chart helps your team communicate, plan, and grow. Here’s why these charts are useful:
They clarify roles and reporting relationships. Org charts make it easier for employees to understand who oversees specific functions, who reports to whom, and how various teams interact.
They improve communication. When everyone knows the chain of command, questions get directed to the right people, and projects move forward more efficiently.
They simplify onboarding. New hires can use org charts to understand the company structure and identify important contacts from day one.
They support workforce planning. Leaders use org charts to spot gaps where new roles might be needed or where positions overlap, making it simpler to plan for growth or restructuring.
They guide decision-making. Clear reporting lines and role definitions help managers assign tasks and projects more efficiently, improving overall productivity.
Types of organizational charts
There are four main types of org charts. Each one shows a different way a company can be organized. Choose the type that matches how your company makes decisions and manages reporting.
1. Functional top-down(hierarchical)
A functional top-down org chart is the most common type. The company is set up as a hierarchy, with one person at the top, usually called the president or CEO. Branching off from that team member are the leaders who are next in charge, like the company vice presidents. The organizational hierarchy extends further into departments and eventually branches into teams.
2. Matrix organizational chart
The matrix organization is a more complex structure than the traditional top-down design. If your company uses this reporting structure, team members report to multiple managers.
While employees likely have a primary manager in their department, they may also report to a project manager. These secondary project managers also report to department managers, which makes the matrix org chart look rectangular rather than tree-like.
3. Divisional structure
A divisional structure is a broader version of the traditional hierarchy. It works well for companies where departments operate independently. For example, companies with separate product lines may use a divisional structure because each product line has its own IT, marketing, and sales departments.
4. Flat organizational chart
A flat organizational chart is different because it has few or no management layers. You might see this in small businesses or modern companies trying out new ways of working without a strict chain of command.
In this structure, team members manage themselves and make decisions together.
Type | Best for | Structure |
Functional top-down (hierarchical) | Traditional companies with clear chains of command | Tree-like, with one leader at the top, branching into departments |
Matrix | Organizations where team members report to multiple managers | Grid-like, with dual reporting lines |
Divisional | Companies with independently operating business units or product lines | Separate hierarchies per division |
Flat | Small teams or modern organizations with minimal management layers | Wide, with few or no levels between leadership and team members |
How to make an organizational chart
An organizational chart helps you see your company’s structure. To make one, gather information about your team and choose how you want to build the chart. As you consider your organization's reporting relationships, you can plan your chart from top to bottom.
1. Define scope
You can treat your organizational chart like any other new project you work on. Defining the scope of your org chart can help ensure it clearly represents your team structure. The scope will determine the overall purpose of your organizational chart.
To begin, consider the following questions:
Will your org chart act as a resource for team members to know who's who within the company?
Will you share your organizational chart with external stakeholders or partners?
Will you need multiple charts for different levels of the company?
By asking these questions early, you can collect the right details and plan your chart well.
2. Gather information
Getting accurate information is key to building a reliable chart. You can do this by emailing team members or working with your HR department.
Here's what you'll need to collect:
Employee names and current job titles
Reporting relationships (e.g., the hierarchy between managers and direct reports)
Department or team assignments
Headshots for added personalization (optional)
3. Decide how to build your chart
Choosing the right tool to build your organizational chart makes the process easier. Drawing it by hand takes time and is hard to share, so it’s better to use a digital tool. An editable PDF template can save you time since it’s already set up with placeholders. You can easily share it with your team.
4. Plan for updates
After creating your org chart, use a team calendar to plan for regular updates. After all, it's likely that your company structure and team dynamics will change often. As people change roles or new employees join, reporting lines can shift. A digital org chart makes it easy to update and share these changes with your team.
Organizational chart templates
It’s easier to create an organizational chart when you start with a template. Most companies use similar structures, like top-down or matrix charts. Use the org chart examples below as a starting point. Pick the type that matches your company, then update the free template to fit your team.
How to use an org chart
Using an organizational chart provides a clear visual of different departments and job titles in action, helping team members collaborate effectively and feel confident in their roles and responsibilities.
1. Visualize reporting relationships
Managers can use org charts to show new team members their responsibilities and who they report to. During onboarding, org charts help everyone learn who does what and remember their coworkers’ names.
2. Manage growth and change
Organizational charts can also help the leadership team stay organized and manage growth or change within the company. For example, if a department head notices that one team has grown larger than the others, they can shift or hire new team members to restore balance.
3. See where everyone fits
An org chart helps everyone see where they fit in the company. New team members can quickly find their team, manager, and how their department connects to others.
4. Improve communication
A clear organizational structure improves communication by showing who reports to whom. Without an org chart, team members might not know who to ask for help. With one, everyone knows who leads what and can work together more easily.
5. Create a visual directory
An org chart acts as a visual directory for your company. Update it when people are promoted or leave, so everyone knows who is on the team and their roles.
Pros and cons of using organizational charts
Org charts are helpful, but they have some drawbacks. Knowing the pros and cons helps you create a structure that fits your team’s needs.
Pros of organizational charts:
Improves communication and clarity. Helps team members understand reporting relationships and how their roles fit into the company structure.
Simplifies onboarding. New hires can quickly grasp team structure and leadership hierarchy.
Improves decision-making. Leaders can better assess workflows, allocate resources, and streamline organizational structure.
Supports restructuring efforts. Provides a snapshot of the company's evolving organizational chart, whether hierarchical or flat.
Works with modern tools. Platforms like Lucidchart, Microsoft Excel, PowerPoint, and Asana allow easy updates, real-time collaboration, and integrations with project management tools.
Cons of organizational charts:
Gets outdated quickly. Company restructuring and role changes require frequent updates to maintain accuracy.
Only shows formal relationships. Doesn't capture dotted-line reporting, informal teams, or collaborative workflows.
Lacks management style insights. The org chart displays hierarchy but not leadership approaches or team dynamics.
Can be difficult to update. Static charts require constant revision, but org chart software and apps like Asana offer real-time adaptability.
Streamline your structure with an org chart
Org charts aren’t perfect, but they make it easier to understand your company’s structure and improve communication. Use our free editable PDFs to create and customize a chart for your team.
Ready to bring more clarity to how your teams work together? Asana helps you organize projects, clarify responsibilities, and keep your team connected. Get started.
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