How to create a company’s organizational chart?

14 of February, 2025

Knowing in detail how a company’s template is structured is vital in the human resources department. One point where designing a suitable company organizational chart is very beneficial.

These days, many people still underestimate the value and contribution of this tool. Next, we want to talk to you about how to create an organizational chart within the business fabric and the steps to follow to develop it. Don’t miss anything and keep reading.

What is an organizational chart?

First, one must know what an organizational chart is. An organizational chart is a graphical and visual ordered reference of each of the structures that make up the entity. It is a system which allows to identify the chains of command, how workers are grouped, under what departments and what functions they perform.

Always marked and defined by the criteria of the management and human resources policies. In this way, the foundations of the company are laid. Establishing vital information to coordinate business, production and interpersonal relationship aspects.

Currently, there are various software that help us to elaborate the organizational chart of a company with ease. For example, Sesame HR has software to create organizational charts. You will be able to design the complete structure of your company with just a few clicks.

In conclusion, knowing how to create a detailed and customized company organizational chart in a short time and with frequent updates is essential for good operation. In addition, visualize how each department is organized with job position, photo and name of each collaborator in the company. It will be a very intuitive and easy to understand organizational chart, even for new people in your company.

How to create an organizational chart?

Planning an organizational chart is a special issue. It requires a process of analysis, structure and definition. The various job positions must be defined, hierarchized and organized. After this, the centers of responsibility must be stipulated, from where they will be coordinated and organized. In the organizational chart of a company, the order and disposition of the different positions will be reflected. And, later, in a procedures manual, each specific position will be detailed.

We can find various types of organizational charts, depending on the aspects we focus on to classify them. Although we must keep in mind that all organizational charts have the same company structuring functions. Each company has a different one, this depends on how the organization in question is distributed.

We have to consider that one thing is to know how to make an organizational chart and another very different is to design it. The physical organizational chart that we see drawn is the display of the corporate structure of our company. Therefore, to make it, we can implement the use of any office or design software that helps us depict the reality of our company. However, the complicated thing is to specify what is the hierarchy of all companies and find what is the correct organizational model for the operation of ours.

6 steps to make an organizational chart

Next, we will give you step by step what you should do and what decisions you should make to obtain your corporate organizational chart:

1. Study the activity of the company and the best structures for your business model. Among the potential structures you can find: the Functional Structure where the company is systematized by departments attending various tasks of the company, the Structure by product where each of the company’s products has its own hierarchy, the Structure by types of customer where the organization of the company is reflected depending on the different customers the company has. And finally, Geographic Structures in which the company is arranged according to the territories they cover. Most sales companies are usually structured in this way.
2. Know the number of employees that you have on your staff and the different functions that each one of them currently has.
3. Determine the number of hierarchical levels we need in our company. This will allow you to define if you want a more vertical company or a model with a more horizontal hierarchy.
4. Establish the functions of each of the employees of the company so that the functions do not overlap and everyone knows what they have to do.
5. Assign management positions at each of the levels and the responsibilities of each individual.
6. Finally, draw the organizational chart reflecting all the decisions that directly affect the structure of the company. In this way, we will have our new organizational chart.

On the other hand, if you want to do everything in a much easier and faster way, you can try Sesame HR’s human resources software. A human resources software that has the ability to design and elaborate a company organizational chart in a matter of minutes. With this, you will find it much easier to know how to create an organizational chart for your company.

Iris Serrador

People Partner | LinkedIn | | Web | +post

Customer-oriented, both internally and externally, specializing in the definition and implementation of HR policies, as well as talent management, recruitment, and retention. Strong leadership, communication, negotiation, organization, and team coordination skills. Over 12 years of experience in Human Resources.

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