No matter what kind of organizational structure you have, an org chart can help employees understand who’s in charge of what. And when the organizational structure shifts, so do the org chart with it. This way, everyone stays on the same page about where they fit in your organization.
An organizational chart is a great way to make sure everyone in your company knows exactly what their place is within the organizational structure.
Organizational charts can also help you see where you might have organizational gaps. Maybe there’s no one in charge of customer service, or maybe your research department has nothing to do with marketing. By looking at the organizational chart, you’ll be able to spot these organizational problems and fix them accordingly.
Org charts are also useful when it comes to training new employees. If someone joins your team, they’ll need specific information about who does what inside the organization. And an org chart makes it easy for them to navigate day-to-day tasks without asking too many questions. You don’t want to waste your time repeating organizational information, nor do you want new employees feeling lost when they should be focused on the job.
An org chart can also help with organizational communication. For instance, if marketing needs product feedback from customers, they’ll need to know what department handles that area of responsibility. With an org chart, organizational communication is easy and effective since everyone knows where to go for assistance.
Things to Avoid when Reinventing your Business Organizational Chart
1) Making your hierarchy chart flat.
Many managers know that their org charts include too much hierarchy. But they don’t really know how to fix it or aren’t willing to cut out all the levels in order to flatten the organization structure. Instead of removing multiple layers, many companies end up creating a flat organizational structure with fewer position titles.
2) Forgetting about reporting relationships.
Don’t make assumptions about reporting relationships between positions when drawing organizational charts or diagrams. You’ll only get frustrated when you notice that your organizational chart is not reflecting the organizational structure of your company.
3) Trying to avoid responsibility by using project structures.
Project structures are great tools for planning and running projects, but they make poor organizational structures. If you use a project structure in place of an organizational structure, managers will find their efforts complicated. And worse, departments may get stuck with no-win situations because there are several people at different organizational levels who are responsible for that department’s decisions.
4) Making it too simple.
When it comes to org chart simplicity, less is not always more. A company’s organizational chart should reflect its business strategy. An overly simplified organizational chart fails to do so. It’s better to have a slightly complicated organizational chart than one that doesn’t reflect organizational goals.
5) Not keeping in touch with organizational changes.
The organizational chart you make today should be relevant in the future, too. You can’t simply draw an organizational chart in a meeting room and expect it to do all the work for you by itself. As your company adapts to organizational changes, you need an organizational structure that can adapt along with it.
6) Forgetting about team members’ career paths.
An org chart is made up of position titles, but behind every position is people whose careers are just as important. If your organization’s org charts focus on job titles rather than career paths, employees will not get the recognition they deserve. There won’t be any motivation for them to stay either since there won’t be long-term opportunities for growth.
7) Not considering positions that need a matrix organizational structure.
Matrix organizational structures can be difficult to understand, but they’re important organizational structures. If you want your organizational charts to reflect the organizational structure of your company, don’t overlook positions that should have a matrix organizational structure. In a matrix structure, employees may have more than one boss, depending on their specific role within the company. This can make communication and decision-making somewhat complex, but it can also lead to greater innovation and creativity.
8) Forgetting about managers’ responsibilities.
The detail-oriented people in your company will appreciate it if you pay attention to managers’ responsibilities when drawing an org chart. Managers are supposed to follow their org charts, so you need to make sure the org chart reflects their roles and responsibilities properly.
9) Focusing on rules rather than human relationships.
People love using organizational charts because they help them get a better understanding of how a business works behind the scenes. But organizational charts won’t be helpful if the people who create them fail to take human relationships into consideration. In other words, organizational charts are useless if they don’t reflect organizational culture or organizational memories.
10) Using a complicated organizational structure for no apparent reason.
Complex organizational structures might look impressive when you first see them, but a company’s org chart should not have too many unnecessary levels. It’s better to go with a slightly complicated organizational chart that clearly outlines your company’s business strategy than to use an overly simple organizational chart that fails to reflect how employees work together in an organization.
Ultimately, having an organizational chart lets you organize your company’s workflow more effectively. When departmental functions are clearly outlined on a company’s org charts, team members will know exactly how their efforts contribute to organizational goals. Moreover, employees will understand which departments they should go to for information and support. Building organizational charts in an effective way will ensure that all necessary information about your business is clearly communicated to organizational members.
Org Chart in Powerpoint or organizational Chart in Word
When creating your org chart, you can use basic softwares like Powerpoint, Word, or Excel. However you make it, what is important is that it reflects your organization in the most accurate way. That is why if you will ever need help in creating one, whether an org chart in Powerpoint, Word, or whatever software you choose, Venngage can help you do just that. Venngage is an easy to use infographic tool that can help you create beautiful, professional org charts in minutes. With over 1 million templates and tools available, there’s something for everyone. Try out Venngage today and see how easy it is to create stunning visuals that will help your business succeed.