Does your Business have an 'Org Chart' (Organisational Chart) and is it up to date?

May 10, 2016

If you are involved in business in any way you will be familiar with the feeling of things descending at busy times into organisational ‘chaos’. Employers and employees often have job descriptions and organisational charts floating around in their heads but in practice when you are swamped this order can become blurry. This leaves us feeling out of control which is not good for either our business or our health!

 

What are the benefits of an org chart?

Put simply an org chart helps to clarify roles and reporting relationships through structure. It is more than this though. It allows your business’s vision and strategy to become clear. With the organisational structure of your business clarified you can focus on the bigger picture. It will benefit a company of any size allowing management and subsequently success to be much easier! Org charts are also a great tool when orientating a new employee.

 

 

What are the limitations of an org chart?

Whilst the structure of an org chart is an advantage it is also a disadvantage. A structured org chart fails to capture and thus give credit to informal channels of communication within a business. If not kept in check a traditional org chart can lead to a hierarchical culture within a business which is not the culture most businesses are going for these days!

 

In summary, it is very important to have an org chart for your business so if you don’t have one get cracking! At the same time it is important to be aware of their limitations and always keep them up to date. This is particularly relevant with today’s more transitory workforce.

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