What is the purpose of having an organization structure diagram

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The purpose of an organization structure diagram is to clarify areas of decision making responsibility, reporting lines, and assist communication throughout the company. It is intended to help all employees understand how they can best contribute to the overall company goals.

Each individual will typically have primary responsibilities in their area of expertise, however, it is important to be able to respond to changing priorities and contribute to other areas as needed.

For example, everyone in the company can be unofficial marketing and sales agents for the company, although that may not be their primary area of responsibility.

Similarly, all employees are responsible for ensuring you meet your customer service promises.

Most private sector companies are organized around four business areas:

Marketing, Sales, Operations/Customer Service, Finance and Administration.

Your organization structure may vary depending on the size and type of business.

In small companies, individuals may wear several hats, and need to jump from one role to another (President, to Sales Manager to Parts Delivery) all in the course of a day.

Your Organization diagram will help you be more aware of these changing roles and help you plan recruiting priorities as your company grows.

Note: Larger companies may need a consolidated corporate structure in addition to a detailed department/division diagram.

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