Businesses, regardless of shapes and sizes, profoundly depend on organizational structures as they define the company’s hierarchy and set ground rules for reporting and communicating across different departments. An effective organizational structure outline employees’ job and how it fits within the overall system.

This structuring provides an organization with a visual representation of how it is structured and how it can add or decrease functionalities to achieve its strategical objectives. These structures are usually represented in shape of chart or diagram in a hierarchical way where top management are at the top of the chart and staff with the least power are at the bottom of it.

Organizations that lack a well-defined organizational structure face many challenged such that employees may get lost to whom they should report or what responsibilities are assigned to which job title. On the other hand, having an organizational chart shall help in increasing the efficiency of communication amongst departments and clarify responsibilities of the organization’s staff.