Tuesday, July 28, 2009

Why Is An Organizational Chart Used

Organizational charts visually represent the formal structure of an organization. Typically, a pyramid shape is used, with the organization's leader at the top and subsequent members listed below their supervisor.


Benefits


An organizational chart works on the premise that visual pictures often make concepts easier for the mind to sort and grasp. It would be much more difficult to remember lists or tables of an organization's divisions and its members.


Org charts also make the hierarchical structure more apparent. Someone external to the organization can quickly see where responsibilities and decisions lie. Because org charts often have names, titles and phone numbers, they can be a quick reference tool. It is one of the first documents new members to the organization should become familiar with.


With the military, and other organizations with a more formal culture, it's important to know the proper chain of command. In some cases, such as an internal grievance an employee may have, it's key to start at the lowest supervisor and not the top leader. At other times, knowing where someone falls in the formal hierarchy identifies the level of decision-making responsibility he has.


Organizational charts can also depict relationships between different groups---such as identifying subordinate or associate units for various divisions. Businesses that must make decisions quickly often prefer a flat structure, without various levels of supervision. Military and formal organizations have a more traditional structure, and an org chart would depict managers at each level, with their subsequent employees.


For organizational leaders, an org chart provides order, which helps with planning, management and resource allocation.


What It Doesn't Do


One downfall of an organization chart is the false sense of understanding it provides. Even when an org chart is easy to understand and accurately portrays the formal hierarchy of the unit (and this isn't always the case), it still does not show the informal relationships and power structures that develop within an organization. Org charts don't identify the culture or formality of the organization; it's important to find out the role the organization's hierarchy plays in everyday activities.


Power structures indicate who has the ability to make decisions or get the job done. Going to the supervisor of a unit, for example, may not be the fastest way to accomplish a task or get approval. The real work may be getting done by someone at a lower level. Discovering true power structures takes time, observation and insight.


Social relationships play a large part in every organization and often defy formal hierarchy. Knowing who knows, and communicates regularly with, whom is key to making things happen.







Tags: formal hierarchy, charts also, make decisions, Organizational charts, power structures