Tool 124: Organization Chart

AKA

Traditional Organization Chart

Classification

Planning/Presenting (PP)

Tool description

An organization chart typically shows the hierarchy and reporting relationships of functional units and their lines of communication and coordination. An organization chart is developed to provide employees with a common understanding of intergroup activities, communication channels, and levels of authority within the organization.

Typical application

• To describe the formal organization.

• To show an organization's divisions and subdivisions, functional relationships, and links of communication and responsibility.

Problem-solving phase

	Select and define problem or opportunity
→	Identify and analyze causes or potential change
	Develop and plan possible solutions or change
	Implement and evaluate solution or change
	Measure and report solution or change results
→	Recognize and reward team efforts

Typically used by

	Research/statistics
	Creativity/innovation
	Engineering
1	Project management
	Manufacturing
	Marketing/sales
2	Administration/documentation
	Servicing/support
	Customer/quality metrics
	Change management

links to other tools

before

• Block Diagram

• Process Analysis

• Tree Diagram

• Work Breakdown Structure (WBS)

• Work Flow Analysis

after

• Organizational Mapping

• Process Mapping

• Markov Analysis

• Task Analysis

• Systems Analysis Diagram

Notes and key points

• An organization chart is drawn from top to bottom, left to right. Organizations frequently show a hierarchical structure, with the highest level of authority at the top of the chart.

• Solid lines indicate the direct or controlling relationships, dashed lines indicate indirect or coordinating relationships.

Step-by-step procedure

• STEP 1 The team determines the organization to be charted and lists all divisions and subdivisions, direct and indirect relationships, lines of communications and responsibility.

• STEP 2 A traditional organization is drawn on a white board or flip chart. See example Employee Training and Development Organization.

• STEP 3 The finalized chart is checked for accuracy and dated.

Example of tool application