Organizational Chart Uses and Benefits
An organizational chart shows the power hierarchy of an organization. It clearly displays a clear reporting system followed by all sub-ordinates. Organizational charts are not used by all organizations though. There are companies that do not use them at all. But these items are beneficial in the following ways:
1. An organizational chart shows who to report to. It lets employees know the person to get in touch with when there is an issue they cannot understand. Large organizations do not flow smoothly without these charts as they have many departments.
2. New recruits are able to orient themselves quickly in a company that uses a clear chart. They can know the people they will be working with prior to meeting them just by reading the chart.
3. These charts facilitate business planning as resources can be allocated much more logically based on key individual competencies.
4. A properly controlled organizational chart makes the roles of managers clearer and measurable.
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