10 Reasons HR Loves Organizational Charts

You know those organizational charts you use to visually show the structure of a company, its departments and its employees? What happens if you add additional information to your charts like performance data, work flow, or job responsibilities? Let’s look at ten ways enhanced organizational charts can help HR manage employees, make decisions, and plan for the future.    

1. Visual retention

Did you know that human beings process visual information at an amazing speed, must faster than text, and that 65% of the general population are visual learners? So, it’s no surprise that organizational charts are an effective way to communicate complex information. Whether you are looking at the company as a whole or focusing on a particular department or work process, enhanced organizational charts present material in a format that offers faster comprehension and longer retention.

2. Employee engagement

Everyone likes to know that what they do matters. Employees are more interested in their company’s strategic plans when they can see how their work contributes to the big picture.

3. Job clarity

“I didn’t’ know that was my job!” “I thought his department was responsible for that.” Have you ever heard those comments? An org chart that adds job responsibilities to departments and positions eliminates confusion.

4. Better decision-making

When delayed action slows down business processes, confusion about the decision-making chain could be the culprit. Enhanced org charts address the issue of who is authorized to make specific decisions up and down the line.

5. Succession planning

Succession planning is an ongoing process. Developing an org chart that includes information on key positions, skills of current employees, and employees in these positions who are approaching retirement help you prepare not only to fill a position when it becomes vacant, but also to plot what positions may becoming available and who would be a good fit for them.

6. Talent management

An org chart can include company goals, what’s needed to reach them, and what kind of workforce development is required. When employee appraisal information is added, HR can better plan for the future by identifying areas that need improvement and gaps that need filled.

7. Cost-Cutting measures

An organizational chart that presents departments and their employees, revenue and expenditures generated by each, and distribution of responsibilities can help HR determine if current staffing utilization meets present and projected company needs. 

8. Growth management

Are new products ready to move from development to production? Is the demand for existing products growing? An org chart allows you to determine what new positions will be created, what the job responsibilities will be, if you can fill them from within the current workforce, and how many new people will be needed.

9. Ability to spot problems

Is employee engagement slipping? Do you have a manager who’s overwhelmed trying to keep up with direct reports while another looks for something to do? An org chart helps you keep workloads balanced and employees productive by identifying uneven distribution of duties.

10. What-if analysis

With a holistic view of your company structure, you can visually “re-arrange” departments, responsibilities, reporting relationships, and other aspects of your business, helping determine what changes might increase productivity and improve organization.

A voice at the table

In-depth organizational charts are the tools HR professionals need to collect facts, identify strengths and weaknesses, and plan for the future, all while keeping the big picture in mind. Tying HR goals to the lager company goals gives HR a stronger voice in the company-wide strategic planning conversation.