Your organization structure represents all the key employees, and therefore, it has a unique role to play in the business domain. In today’s era of growing competition, it is necessary to build the organizational structure in an easy-to-understand, pictorial format to serve various business objectives. Here an organizational or Org chart comes into the picture.
An organizational chart is a diagram that shows the entire structure in the highly systematic manner by covering the relationships and various ranks of employees with your company. Anyone can get a rough idea of ‘who does what’ in your company through the Org chart. The chart has an order in which the top management and key personnel have retained the authority and power to achieve business goals successfully. In other words, we can state that the organization chart is nothing but the graphical illustration of the concept called chain of commands. It shows the flow of authority and responsibility in any enterprise.
Any organizational structure defines how various business activities including delegating tasks and supervision can be organized for achieving company goals and objectives, while the organizational chart visually represents the structure. As a graphical representation of a hierarchy pattern, the chart shows relationships between the superior and subordinate employees along with the lines of communication.
Business importance of organization chart
Any enterprise needs to offer guidance and clarity on various business and human resources issues. The Org Chart ascertained the allocation of responsibility through showing the brief summary of activities being performed and established management authorities. In a way, such a chart is a great tool that extends support in creating and defining the organizational structure. In a way, the Org chart helps companies in accomplishing business objectives.
An organizational chart helps top management in dividing the functions of an organization in a proper manner and assists key people in developing the reporting structure while guiding all the employees about the roles and responsibilities. Connecting lines on the chart show the accountability of people in charge of various departments.
When it comes to employees, the chart shows them the reporting manager for informing about various issues that require immediate attention. The chart makes employees fully aware of their roles and responsibilities. In a way, decision-making becomes easier for the company’s top brass.
In brief, it is fair to mention that an organizational chart is not just a snapshot of an organization or a blueprint of its function, but it is a valuable tool to enable management to visualize and understand how the workflow is distributed among various departments or units of the company.
Types of organizational charts
Hierarchical, flat, or matrix- organizational charts have several different types, but the main purpose of creating any organization chart is to show the reporting relationship in any organization. Through demonstrating a structure of any organization, the Org chart enables us to understand the workflow. Also known as organogram, a proper organizational chart plays a vital role in defining the structure, style, and business model through clarifying the line of authority.
Finally, here we give a list of some of the most important business benefits of an organizational chart:
Benefits at a glance
- Helps build and design the organization structure
- Guides the employees for various issues
- Shows roles and responsibilities of key persons
- Defines relationships between the staff members
- Displays the functions of a company to anyone who accesses the chart
- Helps find the status of workload
- Enables management to find incompetent persons at important positions
- Brings clarity about the work and improves employee performance
- Shows the reporting person immediately in the case of any issue
- Facilitates interdepartmental collaboration
- Assists managers to analyze budget and generate reports
- Outlines employee tasks while showing the responsible manager for overseeing each employee
- Enables management to find out any unrelated persons in key positions
Here we have covered an org chart advantages from a business management perspective, but it can also offer more benefits in other business aspects. One of them is: It facilitates a paperless office strategy by saving more paper while providing more convenient digital access to employee information on the move.
There is no exaggeration in saying that the chart can give an organized touch to your company together with other meticulous efforts to define and classify the workforce.
Nitesh has some 6 years experience in the software development industry. Initially a web developer coding in HTML/PHP/Perl etc., he later got into mobile app development and now has expertise in project management, working at IndiaNIC.