Company org chart: what it is and how to structure it (with template)

The org chart (organigrama) is often the first document a new employee or a curious candidate looks at to work out “who coordinates whom” in a company. Although it looks like a simple drawing of boxes and arrows, a well-made org chart clarifies responsibilities, shortens decision-making time and prevents conflicts of authority. A neglected chart, out of step with reality, does exactly the opposite. This guide explains what an org chart is, what legal framework supports it in Romania, what types exist and how to build one properly.

What an org chart is

An org chart is the graphical representation of a company’s organisational structure: who holds which position, which department they belong to and who they report to. In practice, it is the map of the hierarchy and the reporting relationships in a company, from management down to the operational levels.

It is not just a decorative document for the “About us” page of a website. The org chart is a management instrument: it shows explicitly the decision chain, the boundaries of responsibility and how information and authority circulate inside the organisation.

The legal framework in Romania

The Labour Code (Codul Muncii) does not impose a standard org chart model and does not oblige private companies to publish or file this document anywhere. What it does do is that Article 40 of the Labour Code recognises the employer’s right to establish the organisation and functioning of the unit, including the organisational structure, the duties attached to each post and the reporting lines. In other words, the decision on the form of the org chart belongs to the employer, within the limits of the law and of contractual good faith.

In the public sector the rules are different and stricter (regulated post structures, org charts approved by normative acts or decisions of the public authority) — a subject that goes beyond the scope of this article and requires consulting the regulations specific to the institution concerned.

For private companies, then, the org chart is not an explicit legal obligation, but it is an essential management practice, especially as the team grows beyond a few dozen people and the informal “everyone knows who does what” stops working.

What an org chart is for

A well-drawn org chart has concrete, not merely symbolic, uses:

• It clarifies who reports to whom, removing ambiguities of authority and responsibility.
• It makes onboarding easier — a new employee quickly understands where they fit and who to contact.
• It supports human resources planning — it highlights vacant positions and departments that are under- or overstaffed.
• It helps with delegation and succession — it shows who could take over duties in a manager’s absence.
• It supports internal communication — it reduces the blockages caused by not knowing the structure.
• It is useful in audits, certifications or discussions with investors and partners, who often want a clear picture of the organisational structure.

Mandatory elements of an org chart

Whichever type you choose, a functional org chart has to contain a few minimum elements:

• The positions/roles — the clear name of each role (e.g. General Manager, Sales Manager, HR Specialist).
• The names of the holders (optional, but recommended for internal charts) — externally published charts can stay at role level, without names.
• The departments/divisions — the grouping of positions by function (Sales, Production, Finance, HR and so on).
• The reporting lines — the arrows or connectors showing who reports to whom.
• The hierarchical levels — from executive management down to the operational posts.

Optionally, some org charts also include additional information: the number of posts in a department, cross-functional project teams, or dotted lines for functional relationships (collaboration without direct reporting).

Types of org chart

The vertical (hierarchical) chart

The most common form — a pyramid in which every level reports to the one above. Simple to read, suitable for companies with a classic structure, clear hierarchies and linear decision chains.

The horizontal (flat) chart

It has few hierarchical levels between management and the rest of the team. Common in startups or small companies, where autonomy is high and decisions are taken quickly, without many intermediate filters.

The matrix chart

It combines functional reporting (by department) with project reporting. An employee may report at the same time to the department manager and to a project manager. It is useful in complex organisations with many simultaneous projects, but it requires very good communication to avoid confusion over priorities.

The functional chart

It structures the company by major functions (Production, Sales, Finance, Human Resources, IT), each led by a person in charge who reports to general management. Suitable for medium-to-large companies with clear specialisation by area of activity.

Benefits by role

For the employee — they know exactly who they report to, where they fit in the team and who to approach for various requests, which reduces confusion especially in the first months.

For the manager — they see clearly how many people they coordinate, which departments work directly with theirs and where there are overlaps or gaps in responsibility.

For HR — the org chart is a basic instrument for planning recruitment, identifying vacant posts, analysing the manager-to-report ratio and preparing reports for management or for the authorities (e.g. REGES, the General Register of Employee Records, and staffing structures).

Steps to create an org chart

1. Take stock of all existing positions — start from the real list of employees and their current roles.
2. Establish the reporting relationships — who reports to whom, at each level.
3. Group the positions by department/division — by function or by process.
4. Choose the type of org chart that suits the company’s size and culture (vertical, horizontal, matrix, functional).
5. Build the graphical representation — using a dedicated tool or a module built into the HR platform.
6. Validate it with the department managers — make sure the structure reflects reality, not just the “paper” chart from two years ago.
7. Publish and communicate it internally, so that the whole team has access to the current version.

Good practice

• Keep the org chart up to date — every hire, departure, promotion or reorganisation should be reflected promptly, not quarterly or annually.
• Keep it in step with the real structure, not with the “official” one left unchanged for years — an outdated chart creates confusion, not clarity.
• Avoid visual overload — for large companies, consider charts per department rather than one huge document that is hard to read.
• Distinguish the internal chart from the external one — the version published on the website or in presentations can stay at role level, without names, for confidentiality reasons.
• Connect it to other HR processes — recruitment, onboarding, performance review — so that the structure is always an active instrument, not a static document.

How Workly helps

In a classic HR platform, the org chart is often a separate file, updated by hand and quickly out of date. In Workly, the organisational structure comes straight from the real personnel data already in the platform — roles, departments and reporting relationships configured at employee level — so that the chart automatically reflects any change: a new hire, a promotion or a move between departments shows up immediately, with no separate manual update.

The chart can be viewed by team, which helps department managers in particular to see their own structure quickly, without navigating the whole company’s chart.

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Informational article, accurate at the date of publication. Not legal advice. For your company’s specific situation, consult a specialist in employment law or human resources.