Organizational chart is a chart that describes administrative and functional structures of an organization. The chart usually displays managers and sub-workers who make up an organization. The chart also displays relationships of the staff. In many large companies, the organization chart can be large and incredibly complicated and is therefore sometimes dissected into smaller charts for each individual department within the organization.

There are three different types of organization chart: Hierarchical, Matrix and Flat.

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An example of a Line relationship in this organizational chart would be between the Division Officer and the three departments Training PO, Division LPO and Material PO. These three departments are directly responsible to the Division Officer.

An example of a Lateral relationship in this organizational chart would be between Section Leader 1, Section Leader 2, Section Leader 3 and Section Leader 4 who all work on the same Hierarchical level and all report to the Senior Section Leader.

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There are several limitations with organizational charts:

• Organizational chart only shows 'formal relationships' and tells nothing of the pattern of human (social) relationships which develop.
• Organizational chart shows nothing about the managerial style adopted (eg autocratic or democratic).
• Almost every organizational chart very quickly becomes out-of-date, especially in large organizations who change their staff frequently.