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Organizational Charts: How Exactly Do They Help Your Business?

Organizational Charts

Organizational charts are simply charts that show the hierarchy and internal structure of a business, company, or organization. While they are mostly utilized by medium to large business ventures, they are also of critical importance to small businesses. Organizational charts provide numerous benefits to businesses and their staff as well as their associates and clients. It’s a win-win situation for everyone. From improving management to promoting employee performance, improving workload management, solving problems and hiring, an organizational chart is beneficial in many ways across the various in an organization. So what exactly is an organizational chart and why can it help your business? Here are some pointers you should read to find out.

What’s an organizational chart?

As earlier pointed out, an organizational chart is simply a diagrammatic representation of an organization’s internal structure. It often depicts various departments along with the responsibilities and roles of certain individuals or teams in the organization and their relationships with other staff, teams, or departments. On this note, an organizational business chart can help your business by:

Promoting employee learning

By just looking at an organizational chart, even the newest of employees can easily learn about your company or small business. They can have a visual outlook of the entire business and what the various departments are all about. The chart also enables new employees to know the people they’ll be working with, even before they get to meet them in person. This makes it easy for employees to connect with other employees, managers, and even board members, old and new. From a simple gaze at the chart, a bright new employee can easily get a grasp of the department they belong in.

Data management, analysis, and reporting

In today’s corporate world, nothing is more important than data tracking, analysis, and reporting. With a modern organizational tool, businesses can manage crucial employee information more effectively using the data that is saved in their digital org chart. When combined with other business charts with advanced analytical functionalities and sophisticated data visualization features, presenting critical reports while convincing your audience at the board meeting (say when seeking investors) can also be made easier. If you’re looking for a tool that will help you ace persuasion through presentations in the corporate world, Michael from Slide Heroes suggests getting more information about the various types of business charts available. From time series, to nominal comparison, correlation, ranking, geospatial, and part-to-whole graphs, there’s a wide range of business charts to pick from. Each of these has its own unique benefits and can serve different purposes. In the end, however, combining business charts with organizational structure charts can see you get new business, persuade your target clients, convince investors, and so forth, all of which trickles down to improved business performance.

Workload management

Org charts also serve as great tools through which employees in a business organization can better identify their roles and responsibilities. Additionally, managers in various departments can use them to manage the assignment of roles, tasks, and responsibilities to prevent overlaps and duplication of work. This way, it becomes easier for supervisors and managers to effectively manage workload, which consequently results in improved productivity in the workplace. This is mostly because a detailed organizational chart clearly shows how many staff members belong to a particular department or perhaps how many teams a particular manager needs to be in charge of.

Improved decision making

Decision-making is the backbone of success in any business organization. One simple bad decision can bring any business to its knees in the snap of a finger. With a good diagrammatic representation of an organization, along with analytic business charts, it becomes easier for business owners or the board to make informed business decisions in a timely manner. This is promoted by the fact that business charts provide a clear visualization of not only your business’ structure, but also the results in various departments in the business.

Improved employee performance

Especially for small to medium enterprises, employee performance has a huge impact on the success of any business. But as earlier pointed out, org charts allow employees to clearly identify their roles and understand the ins and outs of the business. Additionally, org charts can make it easier for the HR team to identify vacant positions within the organization and, based on employee performance data or data from other departments, allocate these positions to the most commendable staff. Nothing motivates employees become more productive than the thought that everything they do could earn them a promotion. In addition to this, this visualization can also promote the connection and relationships between employees as well as with their employers.

It enhances problem-solving


Depending on the size of your business or the kind of operation it deals with, problems arise from time to time, some of which may require being handled by a more experienced person. With an organizational chart, employees are able to know where to seek help, ask for information or report to and in which department they can find them in case they come across an issue they are unable to handle. This way, your business is able to address potentially catastrophic problems while improving efficiency and productivity. As a business owner, you’ll also know who to ask questions in case something goes sideways in a certain area of your business. Fixing problems can be easier and less time-consuming.

Improved coordination between departments

coordination between departments
If your business has several departments, the lack of proper coordination between them can spell chaos and inconsistencies that can affect profitability. This is because more often than not, these departments will depend on each other in one way or another. For instance, your finance department may require various reports from your procurement department, HR, and marketing when creating a budget, taking stocks, or auditing the books of accounts. Now, having an organizational chart for your business (as we’ve discovered from the previous pointer) can improve interdepartmental coordination, thus streamlining operations. It allows the various departments in your business to work together as one big team towards achieving your main goals and objectives. Planning and reporting also becomes easier for business owners, since they can easily visualize the structure and consider the various branches when making future plans such as allocating resources, restructuring, and so forth.

As you can see, org charts have more than just a few benefits for businesses, small and large. Having a carefully designed business chart can help your business in many ways, and the above are just a few of them. Used carefully, business charts can unimaginably help improve your business’ growth and profitability.

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