The Organigram – 6 Reasons Why Your Company Needs One

The organizational chart – or Organigram/Organogram – is a roadmap of your organization. It typically articulates the job grading system or hierarchy within an organization. The organigram illustrates reporting relationships between the different levels of management within an organization. And frequently the organigram will identify the nature and scope of an individual’s responsibilities and authority.

But why create an organigram? Who cares?

But why create an organigram? Who cares?

6 Benefits Of Having a Well Documented Organigram in Your Company:

• The organigram shows the reporting relationship/seniority in an organization and helps avoid misunderstanding in protocol;
• It improves communication by establishing ‘escalation’ pathways – which are critical for problem resolution;
• It assists with categorizing employees according to an appropriate job grading system that is used for different purposes such as remuneration, employment equity and skills development – all legal requirements that need to be adhered to;
• It reflects the relationship between the different departments in the organization to ensure best practice and alignment with good corporate governance.
• The organigram helps other organizations quickly and easily understand how to work with your organization and identify specific individuals to contact.
• It reduces the risk of legal ramifications, since unclear roles and responsibilities can invite lawsuits from employees.

With an organigram, the members of your organization or company can get a quick picture of how to be more productive and not waste time. The right people can get involved in creating results, resolving issues, meeting customers’ needs, etc. It helps everyone work better together, and that will benefit the entire company.

Here is a sample organigram – since a picture helps communicate the benefit:

Figure 1 - A simple level -based organigram

Figure 2 – A simple function-based organigram

Creating an organigram for your company can be done using automated software such as OrgChart Professional by OfficeWork Software. CNET recommends this software for all users and it can be found at www.orgchartpro.com or www.officeworksoftware.com. This software will automate the chart so that it’s easy to keep up-to-date, since it will synchronize with your HR data.