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Introduction to Organizational Charts

An organizational chart is a diagram that shows the structure of an organization as well as the relationships and relative ranks of its positions. The term "chart" refers to a map that helps managers navigate through patterns in their employees. Charts help organize the workplace while outlining the direction of management control of subordinates. Increasingly a necessary management tool, organizational charts are particularly useful when companies reorganize, embark on a merger or acquisition, or need an easy way to visualize a large number of employees.

Sample Organizational Charts and Templates

Org Chart Sample

Need to create an organizational chart of your own? For an easy solution with over 85 sample chart templates, charting software is a popular choice. Ready-made graphics and layouts help render charts quickly and easily. You can select from a variety of colors and themes. Org chart templates automatically align and arrange everything, giving you professional-looking results and a boardroom quality chart every time. A professionally designed chart, published and distributed to your organization provides a visually compelling method for communicating valuable organizational information to all employees. Download more org chart samples. Create an org chart in minutes and share with colleagues no matter where they are.

Benefits of Organizational Charts

Organization charts are an effective way to communicate organizational, employee and enterprise information. An org chart makes it easier for people to comprehend and digest large amounts of information as a visual picture rather than as a table of names and numbers.

Organizational charts provide the greatest value when used as a framework for managing change and communicating current organizational structure. When fully utilized, org charts allow managers to make decisions about resources, provide a framework for managing change and communicate operational information across the organization.

Using org chart software, Human Resources professionals can create org charts automatically from HR databases and distribute them to management. Managers are then able to quickly visualize the organization and access the salary, gender and tenure information needed for decision-making purposes. Managing change becomes much easier once everyone is able to visualize the organization.

Organizational charts provide managers with specific departmental information that can then be used as a baseline for planning, budgeting and workforce modeling. It's easy to collaborate on important structural and personnel decisions when you have the overall picture along with the smaller views that make up that bigger picture. Organizational charts can be linked directly to spreadsheets or budgeting tools for interactive what-if analysis, making planning and decision-making easier. Those organizational charts can then be used to provide scenarios back to executives, finance and HR for evaluation and approval. Managers may also use organizational charts to communicate and solicit feedback from their employees to build future plans.

Publishing and distributing org charts to an entire organization communicates necessary and valuable organizational information to all employees. Org charts are ideal for sharing the organization's strategic vision, as well as defining responsibilities, dependencies and relationships. Good charts also allow you to organize their teams with clear responsibilities, titles and lines of authority. A clear and concise org chart is an invaluable management tool.

Workforce Planning

Workforce planning is the process of placing the right number of people with the right skills, experiences, and competencies in the right jobs at the right time. It involves asking such questions as: What is the correct org structure? Is the organization aligned with business goals? How do we weather the storm and exit prepared for growth? How do we reorganize to meet new financial objectives? Companies typically engage in annual planning, quarterly planning and ongoing planning. Workforce planning consists of four consecutive phases:

  • Strategy – Determine the goals and objectives of the organization and what it will take to accomplish them.
  • Workforce analysis – How is the organization set up right now? Are there gaps or problem areas?
  • Implementation of plan – This could entail anything from a large re-organization or workforce reduction to promotion of a few key employees.
  • Revision – Assess what is working and not working. Adjust accordingly.

Primary workforce planning activities include Organizational Design, Reorganization, Mergers and Acquisitions and Succession Planning. These disciplines assist HR and Executive teams in determining the correct structure, shifting resources accordingly and backfilling positions when key employees leave or move.

See Also

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