Choose Insert -> Picture -> Organization Chart to insert a drawing canvas in your document with a very simple 2-level organizational chart inside it.

Word will also open the Organization Chart toolbar:

•    To add text to a box: Click in the box and type the test.
•    To edit text in a box: Click inside the box and edit as normal.
•    To add a subordinate: Click on a box and click the Insert Shape button once; a box is added on the lower level.
•    To add an assistant: Click on a box and then click the Insert Shape button's triangle to open the menu, and select Assistant:
  
•    To add a coworker: Click on a box and then click the Insert Shape button's triangle to open the menu, and select Coworker. A box is added at the same level.
•    To delete a box: Click the box and press Del.
•    To change the chart layout: Select a layout from the Layout button:
  
•    To change the format (the colors, line styles, and so on): Click the AutoFormat button and select from the AutoFormat dialog box:
  

•    To change the object's wrapping style: Click the Text Wrapping button  and select from the menu:
  
•    To change connecting-line colors: Choose Select -> All Connecting Lines from the toolbar; then choose Format -> AutoShape from Word's menu bar and pick a color.
•    To change fill colors: Select the boxes you want to modify; then choose Format -> AutoShape.
•    To select multiple lines and boxes: Use the Select menu on the toolbar; you may have to click on a box first.
  

Example:

Before you change a layout, we recommend you to save the document. The Undo might not work properly here; so if you don't like the results of your changes, you can close the file and reopen to get back to the previous layout.