Why Employees Need an Organizational Chart

Written by Economic Development Jobs on October 20, 2016. Posted in Business organization chart, Company contacts app, Employee directory software


An organization’s culture has a high impact on the overall health of an organization and its employees. According to a survey, 64% of all employees do not feel they have a strong work culture and only 21% feel strongly valued at work. These statistics show an underlying problem that can lead to lower profits.

Research has shown that low level engagement results in a 33% decrease in operating income and an 11% decrease in earnings growth. Companies with high-level engagement have a 19% increase in operating income and a 28% increase in earnings growth.

An organization’s culture fits in because it instills the values by which a company operate. Overall, it can affect the bottom line in terms of productivity, creativity, profitability, and growth rates, as said by more than 50% of those surveyed.

While there are many methods of enabling a positive and productive organizational culture, one effective method that companies are employing is the business organization chart. Here are three reasons why a business organization chart can foster a strong organizational culture.

Clear Communication of Hierarchy

For many employees (especially new hires), one of the more challenging aspects is understanding the roles and hierarchy of the company. Within a large team, it may be difficult to discern who to go to for specific projects or approval.

An org chart creates delineated lines between teams and creates a clear understanding of the structure of an organization. This clears up confusion and enables a better understanding of individual roles.

Opportunities for Advancement

A benefit of an organizational chart is showing employees clear paths for advancement. If an employee feels they do not have a clear path for advancement, this could lead to lower engagement and a drop in productivity. A business organization chart clears up that confusion and spells out very clearly what the next step is for an employee to contribute in a larger capacity for the organization.

Dissemination Through Technology

One survey shows that 82% of respondents use smartphones at work for texting, with 66% adding they use smartphones for email. Although some employers may frown on the use of smartphones at work, this usage can be utilized to the employer’s advantage.

For the purposes of a business organization chart, an employer can use an org chart software to create an online org chart that can be disseminated electronically to employees. Another option includes using an app that allows for the creation of an org chart on a smartphone or mobile device.

Technology is an integral part of companies today and can benefit the leadership within a company by helping to better a company’s culture. There are many apps available to this end, including Google apps, an employee app, and apps for creating organization charts.

Finding a way to create better engagement with employees and making them feel valued is crucial for the health of a company. An organizational chart that provides a clearer image of the company’s structure and advancement routes is critical.

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