An org chart or organizational chart is a diagram that illustrates the structure of an organization and the relationships between its units. It shows the hierarchical arrangement of personnel in an organization to help people understand how the organization works and who reports to whom. The diagram typically illustrates the relationships and positions of employees within the company, with lines and arrows indicating the flow of communication and information. Org charts can also illustrate different levels of authority and responsibility.
They come in many different shapes and sizes but typically consist of boxes (or circles) representing individual workers or departments, with lines connecting them to indicate their relationship.
Org Charts Are Used For A Variety Of Purposes
Org charts are also used for planning, communication, or analysis purposes. While org charts are generally and commonly used as a business organizational chart, they can also be created for any type of group or community.
Sometimes, org charts also show the structure of a company’s product or service offerings. Although they were once traditionally used only in large corporations, today org charts are used by businesses of all sizes to help visualize their organizational structures.
If you are in business, you definitely need an org chart. Despite its simple definition, there are many reasons why having an org chart is beneficial to businesses of all sizes. Here are the top 10 benefits of having an organizational chart:
1) Organizational Chart Helps Organization to Make Strategy Easily
It is quite difficult for every organizational member to understand his job profile with so many departmental functions involved. But when you have an org chart, it will be easy to plan the strategy as well as execute them by using organizational hierarchy. You can easily identify who is responsible for what works at each level by including all positions on the org chart.
2) Ensures Accountability at the Right Person
Having an organizational chart is not only beneficial for organizational members but also ensures accountability for the right person. You can easily hold organizational members accountable once you include organizational structure and hierarchy in organizational charts.
3) Hierarchy Chart Ensures Clear Reporting Relationship
You should have an organizational chart to ensure clear reporting relationships because every organizational member should know his subordinates as well as the manager. It is important that each organizational position reports to one supervisor who has proper authority over the job responsibilities of his direct reports. This makes a clear reporting relationship between different levels.
4) Enhances Communication across the Organization
To enhance communication across the organization, you need an organizational diagram first. Communication is an essential organizational function because it conveys to organizational members about goals and plans, structure, and individuals’ roles in achieving organizational objectives.
5) Enhances Collaboration
It is important that every organizational member should understand the role of his colleagues and work together to achieve organizational goals. This can be achieved by having an organizational diagram that includes all organizational positions such as CEO, COO, CFO, CIO, etc. It helps organizational members to know their co-workers for collaboration or teamwork.
6) Clearly Shows Job Responsibility Transparency
When you have an org chart, there won’t be any confusion about job responsibilities among organizational members. Everyone knows what he has to do and how he can get jobs done through his subordinates who report to him.
7) Increases Job Satisfaction and Productivity
By having an organizational chart, every organizational member will know his job responsibility as well as authority over subordinates. It is important that organizational members should know about their organizational level and how they can achieve organizational goals through organizational design. This will help employees to feel satisfied with the work assigned to them and recognized for their contributions.
8) Cut Down Cost of Manpower Planning and Selection
When you have an organizational structure, it becomes easy for planning manpower accordingly. You can easily match jobs with the organization’s technical and functional requirements by using organizational design.
9) Enhances Learning Process in Organizations
It is not possible to ensure organizational learning without organizational structure and organizational design. It helps organizational members to understand the organizational goal, behavior of their co-workers, etc. This organizational knowledge can be shared through communication which further enhances organizational learning.
10) Business Organizational Chart Creates More Responsive Organizational Structure
With an org chart, you can always ensure that your organizational structure reflects changes occurring in the organization. For example, when there are promotions, employees moving from one department to another or when project teams are formed for short-term activities then it becomes easy to create new organizational positions. This organizational structure will create a more responsive organizational environment.
In general, organizational design helps organizations to achieve organizational goals by organizing employees in a way that makes them aware of their organizational roles and how they can contribute to organizational success.
You Can Create Org Chart in Powerpoint Or Organizational Chart In Word
Org charts can be created on whatever platform or software is available. But if you ever need help in making one, Venngage is a great way to create one, whether in Word or in Powerpoint. It’s easy to use and you can get started in minutes. Plus, there are tons of templates and customization options so you can create the perfect org chart for your company. Try out Venngage today and see how simple it is to make an org chart that will help your business run more smoothly!