Organizational Charts

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

Table of Contents

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, the responsibilities and roles of specific individuals or teams, and their relationships with other staff, groups, or departments. On this note, an organizational business chart can help your business by:

Promoting employee learning

Looking at an organizational chart, even the newest employees can quickly learn about your company or small business. They can have a visual outlook of the entire industry 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 meet them in person. This makes it easy for employees to connect with other employees, managers, and even old and new board members. From a simple gaze at the chart, a bright new employee can quickly grasp the department they belong in.

Data management, analysis, and reporting

Nothing is more critical in today's corporate world than data tracking, analysis, and reporting. With a modern organizational tool, businesses can manage crucial employee information more effectively using the data 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. Suppose you're looking for a tool to help you ace persuasion through presentations in the corporate world. In that case, Michael from Slide Heroes suggests getting more information about the various types of business charts available. There's a wide range of business charts, from time series to little comparison, correlation, ranking, geospatial, and part-to-whole graphs. 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. This is mainly because a detailed organizational chart clearly shows how many staff members belong to a particular department or how many teams one specific manager needs to be in charge of. Additionally, managers in various departments can use them to manage the assignment of roles, tasks, and commitments to prevent overlaps and duplication of work. This way, it becomes easier for supervisors and managers to effectively manage workload, resulting in improved workplace productivity.

Improved decision making

Decision-making is the backbone of success in any business organization. One simple lousy decision can bring any business to its knees in the snap of a finger. With an excellent diagrammatic representation of an organization, along with analytic business charts, it becomes easier for business owners or the board to make informed business decisions promptly. 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 business departments.

Improved employee performance

Especially for small to medium enterprises, employee performance significantly impacts 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 company. Additionally, org charts can make it easier for the HR team to identify vacant positions within the organization and allocate these positions to the most commendable staff based on employee performance data or data from other departments. Nothing motivates employees to 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 and their employers.

It enhances problem-solving

Depending on the size of your business or the kind of operation it deals with, problems occasionally arise, some of which may require being handled by a more experienced person. With an organizational chart, employees cancer to seek help, ask for information, or report to and in which department they can find them in case they encounter an issue they cannot. This way, your business can address potentially catastrophic problems while improving efficiency and productivity. As a business owner, you'll also know who to ask questions about if something goes sideways in a particular area of your business. Fixing problems can be more accessible and less time-consuming.

Improved coordination between departments

lack of proper coordination
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 these departments will often 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. 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 toward achieving your main goals and objectives. Planning and reporting also become 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, etc.

As you can see, org charts have more than just a few minor and significant business benefits. A carefully designed business chart can help your business in many ways, and the above are just a few. Used carefully, business charts can unimaginably help improve your business' growth and profitability.