Define: Organizational Chart

UK Accounting Glossary

Definition: Organizational Chart



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Full Definition of Organizational Chart


An organizational chart is a diagram that represents and defines the structure of an organization in terms of rank. The organizational chart generally plots the relationships between staff, showing directors, managers and general workers. An organizational chart is a graphic representation that only shows formal relationships, lines of authority and responsibility. What an organizational chart does not reveal is social relationships or the type of managerial style an organization has adopted. An organizational chart is also referred to as an org chart. In addition to businesses, government agencies and school districts also utilize the organizational chart concept. When looking at large conglomerates, the organizational chart can become confusing and highly complicated. Therefore, a main organizational chart is often broken down into smaller, more functional charts. The organizational chart is usually one of three types: hierarchical, matrix or flat. Most business plans contain an organizational chart to describe the make-up of an organization.


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Definition Sources


Definitions for Organizational Chart are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February 2020.