Final answer:
An organizational chart represents the hierarchy of authority within a company, showing the official positions and the formal lines of authority from the top executives to the entry-level employees.
Step-by-step explanation:
An organizational chart is a diagram of the organization's official positions and formal lines of authority. This hierarchical structure is designed to illustrate the hierarchy of authority within a company. For instance, in a retail setting like Walmart, the chart would show that a shift manager reports to the store manager, who in turn reports to the regional manager, all the way up to the CEO who is responsible to the board members and shareholders. Such charts provide a sense of order and organization, delineate power differences, and clarify the roles of individuals and groups within the company. Organizational charts are considered important tools for employees to understand the company structure and can be especially useful in large, formal organizations where a clear division of labor, explicit rules, and impersonality often prevail.