Value of Org Charts

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Overview

Organizational charts are an effective way to access information on employees and the organization itself. 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.

Advantages

Using org chart software, HR 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.

Org charts provide managers with specific departmental information that can then be used as a baseline for planning, budgeting and workforce modeling. Collaboration becomes easier for 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. Clear, detailed charts also allow management to organize their teams with clear responsibilities, titles and lines of authority. A clear and concise org chart is an extremely important management tool.

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