What does an organizational chart illustrate?

An organizational chart is a visual representation that illustrates the structure of an organization, highlighting the division of work and the lines of authority among various roles and departments. It shows how different positions relate to each other and reveals the hierarchy within the organization. This helps employees understand their roles and responsibilities, as well as how they fit into the larger organizational framework.

By indicating who reports to whom, the organizational chart clarifies the flow of communication and decision-making processes. It can also aid in identifying potential areas for improvement in the organization, such as redundancies or gaps in the structure.

Other options, while important components of organizational management, do not align with the primary purpose of an organizational chart. Performance levels concern evaluations of employee effectiveness, training programs relate to employee development opportunities, and compensation structures deal with salary and benefits arrangements. Each of these areas may be integral to human resource management but are not depicted in an organizational chart.