An organizational chart or diagram shows the relationships between units and jobs in an organization. Designing a chart is an important responsibility of managers.

Organizational chart (diagram) is not equivalent to the structure of the organization, experts know that defining the communications in the organization that is reflected in the chart is part of the organization structure.

A structure is a broader concept that encompasses how an organization is run and indicates the degree of concentration of authority and decision-making power, the way the organization and units react to the environment, the extent of use of approved instructions and procedures, and the current formality in the organization, and such root issues that are all derived from the organization’s strategy.

Although the organizational chart is also designed in accordance with these decisions, it does not show all the complexities of the structure. Strategy clarifies how managers judge these important issues and is a basis and reference for ensuring the accuracy of structural decisions.

A suitable organizational chart facilitates communication between units and jobs in the organization, and when managers diagnose ineffective communication in the organization, they have to seek the route cause to improve and redefine communication paths reflected in the structure and chart.

The organizational chart specifies what the chain of command is like and how hierarchy works, who is subordinate to each other and how reporting should be.

Also, factors such as existing organizational units and the span of control (the number of people under the supervision of a manager) need to be cleared in the organizational chart.

In this regard, there are different styles for efficient design of units and departmentalization of the organization. Preferred style can be used according to the condition and mission of the organization, existing resources, and operating environment.

Some of the main organizational chart models include:
Charts based on function, product, geographic area, hours and time of activity, project, processes, customers and market, matrix, process, team, network etc.

After departmentalization, designing an organizational chart by specifying the jobs in the units is the main priority. The accountabilities of the jobs are defined in this step. In the strategic management approach, jobs are designed in such a way that their main focus is on obtaining the expected results to ensure that they contribute to the organization’s achievement of strategic goals.

Job analysis plays a major role in this step. Identifying the main responsibilities of the job by studying the workflow and current tasks, analyzing this information, and ultimately converting it into a document that is understandable to users is the output of this stage.

A job profile designed in this way will transform abstract goals into concrete activities in order to make organizational activities meaningful.

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