The Power of Organizational Charts

Organizational Charts Improve Organization financially responsible business | The Power of Organizational Charts | In every organization, you’ll always find a formal structure that functions as a reference for responsibilities in the business. 

Organizational charts are a necessary feature of every company. Companies tend to utilize these charts to better understand the structure of their business and easily track employees as they progress through the organization. Here are ways that an org chart can enhance your overall workforce management to be successful in today’s ever-dynamic business landscape.

Clear Reporting Structure

It helps employees when they know who they can turn to if they have any questions. Organizational charts clarify the reporting structure beyond who they report to. It also helps them identify the supervisors to approach whenever there are issues that need resolution or if they require guidance about complex tasks.

While this use of an org chart is helpful in all types of companies, it’s especially crucial if you have a lot of employees and different departments in a global organization. A person in one department probably does not know the names and titles of those in other departments or areas.

In such instances, utilizing an organizational chart can help them quickly find and get in touch with the relevant person for their question or current need.

Easier Communication

A smooth flow of information is needed by any organization to succeed as this improves communication. Managers and employees receive the necessary instructions to complete critical activities, new policy updates, and preparations for dangerous situations.

It also creates a healthy culture where employees are empowered to express themselves. This kind of environment breeds creativity, efficiency, and productivity.

Communication in an organization can flow in different ways. It can flow from top to bottom, seniors to juniors, horizontally among peers, or diagonally among departments. Communication flow is determined by the size, structure, culture, and nature of the business.

Regardless of these factors, organizations should maintain a clear and precise format for internal communication. This helps dictate the methods and speeds by which ideas flow among managers and employees. An interactive organization chart with built-in communication channels and ways to message colleagues within the solution works for small and large organizations alike.

Ease Growth and Expansion

Smaller companies can function without an organizational chart as everyone probably knows each other and knows what they need to do. But as organizations grow, the way the organization structure is tracked and monitored changes with it. An example would be that more layers of management are added, and employees shift from one team or department to another.

A sound organization structure makes sure that the company has the right people in the right positions. One benefit of a detailed organization chart is being able to track progress, skills, and overall performance. A good organizational chart can be used to help with employees’ development.

Helps New Employees 

Being in a new work environment can be at times, overwhelming, confusing, and frustrating. You get introduced to new people, you figure out your tasks and try your best to fit in. It’s better to let new employees settle in with the employees who have been in the company longer. 

Studies found that new hires consider the process of learning about their coworkers, tasks, and their workplace culture a significant challenge when starting a new job. An organizational chart can help them learn the people they will work with before meeting them, making it less stressful when they start their new position. 

Organizational chart solutions usually allow you to include photos for employees, serving as a photo directory of the organization. This can help new hires, moving departments or for the ever-growing portion of the workforce that works remotely.

Using a manual method to track the employees, such as excel in a rapidly growing company can tend to get complicated and takes too much time for the HR department. 

For more information on the benefits of having organizational charts, check this infographic by Nakisa Hanelly.

It’s a good thing that there is an abundance of org chart software options available on the market for all sizes of organizations, whether your company is just starting or a big global organization, there are varying levels of features and complexities. Some let you create your own, with your private details; others utilize your existing data and HR systems to do it all for you.

One example of an advanced solution is Nakisa Hanelly, where the solution will leverage the data in your current HCM platform to visualize your organizational structure. 

The org chart goes beyond the employee’s name, title, and photo and, if given permission, can show information such as the managers’ span of control, headcount, and total salary managed right in the chart cell. 

Discover more about Nakisa Hanelly at Nakisa is a global leader in enterprise business solutions for Organization Design and Accounting and Compliance. Delivering innovation, forward-thinking, and robust human resource and financial management solutions.

Organizational Charts
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