An organizational chart (org chart) is a visual communication tool and a reflection of an organization’s culture. An organizational chart demonstrates the relationships between business units, their respective authorities and defines how a business operates. When an employee is new to an organization, reviewing the org chart is often a critical part of the onboarding process, as it familiarizes them with how the company is organized and how it functions day to day.
The org chart also shows the relationships within the structure, indicating how decisions are made and defines who possesses the authority to make them. The org chart defines formal roles and responsibilities, reporting structures and who is accountable for what within the structure. Org charts can be used for variety of purposes including: future planning by management, change management, restructuring, mergers and acquisition and as a visual employee directory.
Without a current org chart, employees may be confused as to how they fit into the business which can create uncertainty and unnecessary conflict, having a negative influence on the culture of an organization.
The Org Chart as the Employee Directory
Organimi makes it easy for organizations to set up visual layouts of each team member within an org structure. With the ability to add Linkedin profiles and phone numbers, the org chart allows personnel to get to know people within the organization and brings the org chart to life. Keeping a current employee directory has never been easier with HR being able to make updates in minutes without any assistance from IT. Help your team get to know each other with a functional, visual org chart from Organimi.
Job Titles and Organizing Outputs for the Organization
Job titles are the official names or designations for the title of what you would call an employee who is performing a specific job. Org structures can be based on business functions, geography regions, projects or in other ways leaders decide to organize their companies. Organimi makes it easy to define these different units and defines the relationships between collaborating and reporting. Anticipating future talent demands helps organizations plan for modifications to the org design to accommodate growth or opportunities to optimize performance through restructuring.
Reporting Structures and Authority
No two organizations are the same. Though the traditional org chart is hierarchal in nature, especially in larger orgs where departments have formed, new trends shaping organizational design have allowed other forms of reporting structures to become more prevalent in today’s more contingent workforce. Virtual/network organizations are being implemented as an efficient, cost effective way to contract out with skilled talent performing key tasks while keeping overhead costs down. Smaller organizations and start-ups rely on the autonomy of horizontal relationships between peers, collaborating to achieve company goals. Even traditional vertically designed org charts, need the flexibility to account for advisory and functional relationships, such as human resources delegating policies throughout the org.
The Org Chart for Planning the Future
Executives of organizations need to regularly visit their mission and strategic direction. The org chart can be a part of the planning process to help outline different scenarios such growth and expansion in a new geographic region or planning for future business function staffing requirements. Organimi allows you to plan the future of your org for different developments before they come up. Organizations that are proactive in this strategic planning benefit from leveraging their strengths while keeping a pulse as to external threats from the market and competitors.
How Often Should You Update an Org Chart?
While big changes such as a restructure should not be taken lightly or implemented often, businesses need to ensure that the structure is not prohibiting company performance. An out of date org chart is useless to an organization and creates conflicts around who is responsible for what and is a breeding ground for office politics. Organizations often undervalue the powerful influence of the informal, organic structures between employees and business units, which are often not accounted for on an org chart.
Out of date org charts are complacency based, on the past, which are now a threat to future performance. Executives should review their org designs and assess if it is still empowering or hindering the org at least annually.
While there are many different ways to design an org structure, keeping it relevant, maintained and visible to employees is key to unlocking the most value and performance from your human capital investments.