Organograms typically reflect the job grading system/hierarchy of an organisation. It also shows reporting relationships between the different levels of positions in an organisation.

Benefits of having a well structured organogram in your organisation:

  • It shows the reporting relationship/seniority in an organisation and avoid misunderstanding in this regard;
  • It improves communication through the appropriate channels;
  • It assists with categorising employees according to an appropriate job grading system that is used for different purposes such as remuneration, employment equity and skills development – all legal requirements that need to be adhered to; and
  • It reflects the relationship between the different departments in the organisation to ensure best practice and alignment with good corporate governance.

You can make sure that your organisational structure is clearly presented by developing an organogram that will clearly show the relationships between the different positions. By doing this, you will make your task of complying with legal requirements much easier.

A typical organogram (in a very simplified format) is reflected below: