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Three ways organisational charts help your company

Whether an experienced employee joins a company or is fresh to a company and is not aware of who their colleagues are, to whom they need to report and so on, then how will they know these? Of course one way is by asking fellow employees. But an easy means of getting prepared prior to starting work can be done with organisation charts created by the authority of the organisation. In simple terms, it is an organisation's diagrammatic representation in a complete level. It will comprise the hierarchical orders and authority of managers, their relationship and function with the remaining functional heads.
The objective of using an organisation chart

Organisational charts are of three types namely flat, matrix or hierchical. These can be created using PowerPoint, Excel, MS Word or a web-based tool like Creately. The main objective of using an organisation chart is to illustrate an organisation's reporting relationship. These are tools which help people to understand how a company functions as it explains its structure as a whole. No wonder an effective organisational chart is crucial to make planning easy and defining the style, culture and structure of an organisation, while clearly showing the line of responsibility and authority of every person in the organisation.

An inside perspective

An organisational chart will show the hierarchies and internal structure of an organisation. It will help in creating a visual depiction covering the ranks of different departments, jobs and people which make up an organisation. It will also help in determining how authority as well as information flows within people and departments. Akin to flowcharts, organisational charts utilise simple lines and shapes. The boxes in the chart are filled with detailed information on the team, department or individual, while the horizontal and vertical lines connect such boxes. In fact, the connections amid boxes will demonstrate the direct reports concerning a supervisor presenting who is superior as well as who is subordinate. These organisational charts will perform exactly what its name suggests that is to organise positions and roles in an organisation. One may wish to round-up their organisational chart by including in it the details of departments or people. Adding location, contact information and other notes that can make an organisation efficient and thereby prevent confusion regarding who does what. To get started it is best to draw org charts and break the same into manageable pieces. This way that the information will be consistent. One can section off various areas of their org chart with the below mentioned,
  • Location
  • Project
  • Unit
  • Team
  • Department
How companies can benefit from organisation charts?

Although there are many ways in which a company can benefit from organisational charts, but the top three ways are as follows,
  • Streamline operations- Org structures can aid a company in streamlining business operations. Managers, directors and business owners are generally responsible for organising business functions for departments which can complete different business processes. It will ensure that business operations get completed in an efficient and effective manner. This may help organisations to save money via reducing similar business functions that are completed via multiple departments.
  • Operate multiple locations- With businesses continuing to grow as well as expand, it is likely that they may open several locations in domestic, regional or local economic markets. The org charts will aid business owners in creating a management chain for ensuring every business location operates in accordance to the company's standard procedures. In fact, business owners can largely depend on these structures as it may not be possible for the owner to visit every location on time
  • Improve decision making- Organisations can use an org chart for augmenting the decision-making process of their business. Decisions related to the business often relate to all the information that business owners, managers or directors collect from time to time. An org chart can be designed for promoting the information flow from the frontline operations up to the managers accountable for taking business decisions. Those belonging to the executive level can use such charts to send information to employees or managers accountable for completing the different business functions
The bottom line is, every business should have a proper organisation chart. An organisation chart that is properly constructed, sincerely motivated and actively implemented can help in refining the operational facets of any business.

4 Dec 2015 11:28


About Boris Dzhingarov

Boris Dzhingarov graduated UNWE with a major in marketing. He is the CEO of ESBO ltd brand mentioning agency. He writes for several online sites such as,,, Boris is the founder of and