What Is a Master Organizational Chart?

by Osmond Vitez; Updated September 26, 2017

Master organizational charts are diagrams used to document the structure of businesses. Organizational charts can be general or detailed, depending on the intended use of the chart by management.

Management Hierarchy

Management hierarchies will usually be displayed in organizational charts. This helps management employees understand who they report to and where they receive direction on projects.

Department Structure

Master organization charts will label each department in a company and indicate how they are linked to each other department in the company. No limits exist on how many departments may be listed on organization charts.

Business Planning

Businesses use master organizational charts to plan and design new operations for products and services. Departments may be shifted on the chart to provide better work flow for new operations.

Employee Levels

Employee job levels and duties may be listed on a master organizational chart to review the number and skills of employees in each department. Managers may also be listed here to determine how many direct reports a manager has in his department.

Workforce Planning

Organizational charts can help a company staff new operations or reduce the number of employees in a department. Workforce planning ensures that the company is not overstaffed and remains profitable.