The Importance of an Organizational Chart

Written by Datis Admin

July 18, 2018

The Importance of an Organizational Chart

Organizational Charts, often referred to as Org Charts, are visual representations of an organization’s structure. These charts clearly outline the hierarchy within an organization and indicate the relationships shared among each individual employee. These insights help employees understand who to report to and ensure that managers are properly delegating tasks and responsibilities amongst their team. Organizations that utilize interactive, actionable Organizational Charts also experience many more benefits that drive efficiency and streamline communication.

Perform Administrative Tasks
For starters, Organizational Charts empower executives and managers to complete administrative tasks and view organizational needs at a glance from a single page. Such users can view open positions, pending applications for those positions, complete performance appraisals, file corrective actions, and more. By performing these actions directly from the Organizational Chart, executives and managers can expedite processes that usually require a lot of coordination and back-and-forth communication.

Clearly Identify the Chain of Command
In organizations with hundreds of employees, it’s easy to lose sight of the chain of command. Understanding the chain of command within an organization is important when determining who is the correct person to report to when certain situations arise. Organizational Charts help employees clearly identify all team leaders within their organization. Providing this information to all employees minimizes the amount of time wasted dictating who to pass on information to. Additionally, maintaining this structure electronically within your HR Software can allow workflows like leave requests and position requisitions to be automatically routed to the appropriate managers and executives for approval.

Understand Your Workforce’s Needs
Organizational Charts make it easy to analyze workforce needs by allowing executives to see their workforce from a bird’s-eye view. By taking a big step back, executives can see which departments require additional employees and which departments are overstaffed. This knowledge makes it easier to balance out teams and ensure managers have enough workers to reach their goals and objectives.

Organizational Charts are incredibly useful, especially if used with a position control-based software, to help executives organize their workforce. Employees also experience benefits from Org Charts by identifying the proper chain of command within their organization and communicating with their appropriate colleagues. Implementing an Org Chart within your organization will help optimize your organization when it comes to efficiency and communication.

This DATIS Blog was written by James Clark, DATIS, on June 26th, 2017 and may not be re-posted without permission.