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.