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How Important Organizational Chart?


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What is an organizational chart, and why is it important to your business? You may be asking those questions. If you are, then consider this information, because the chart is actually quite important and you will need to consider many things when creating one.

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How Important Organizational Chart?

  1. 1. How Important Organizational Chart? Melissa Evans -VP of Motivating The Masses-@masterbizcoach
  2. 2. What is an organizational chart, and why is it importantto your business? You may be asking those questions. Ifyou are, then consider this information, because thechart is actually quite important and you will need toconsider many things when creating one.@masterbizcoach
  3. 3. Chances are, you have already seen or heard of anorganizational chart in the past. It is a flow chart of sortsthat lists the positions of all employees at yourcompany, and lists them in order from top to bottom.An organizational chart will show the chain of commandfor all employees.@masterbizcoach
  4. 4. Why is it important? It is vital that all employees knowto whom they answer directly. They also need to knowwho is their ultimate boss, so that they always knowwho to go to when there are concerns, requests orquestions.@masterbizcoach
  5. 5. One thing that can cause a big problem in a company isconfusion. If you allow confusion to persist, youremployees will lose moral and it could greatly affecttheir work and eventually lead to them leaving. Anorganizational chart is an excellent way to avoidconfusion among current employees and help newemployees get an idea of the chain of command.@masterbizcoach
  6. 6. Even if you have a very small business with only a fewemployees, an organizational chart is still vital. Often, inextremely small businesses, the chain of command canbecome confused. By providing your employees with aspecific chart, you will be able to keep these problemsat bay.@masterbizcoach
  7. 7. When you begin the process of making yourorganizational chart, there are some things that you willneed to consider very carefully. The main purpose ofthis chart is to show who each employees directsupervisor is.@masterbizcoach
  8. 8. If you do not already have an exact chain of command inplace, then you will have to take some time consideringjust how it should go. What people need to answerdirectly to you? Are there people in your business whoare responsible for other employees? Do you havesupervisors or managers?@masterbizcoach
  9. 9. You will have to answer these questions before youbegin the process of your organizational chart. You canalso use the chart to spell out what exactly is eachpersons job responsibility.You may want to include a short list of bullet points witheach job title to show the main responsibilities. Thismeans that you will need to take some time consideringjust what each employee does. This can be a great wayto keep all job responsibilities in order and avoidconfusion.@masterbizcoach
  10. 10. An organizational chart can be a great way to keepconfusion out of any business. It can be helpful forsmall businesses especially, where lines can easily be blurred.@masterbizcoach
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