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An organization chart shows the relationship of positions and departments in a company. It is a diagram that illustrates the relativity of different ranks and how they are interlinked to each other. Mainly, it pictures the entire structure of the company and represents the important relations of people to the company and its divisions.
Also, an organization chart can reflect the chain of command and the level of authority that is being followed by the company. This kind of delegation helps the company see how tasks are able to work and how the processes of the company should flow.
You may look at our chart templates so you can use any of them should you want to create an organization chart.
As a representation of the hierarchy of the organization in terms of authority, an organization chart is important in showing the lines of communication needed to be followed by all the employees. It helps the employees see the leaders per department and the subordinates in certain areas as well.
It is very much needed in task delegation and knowing that all functions are related to each other. In such a way, this helps the company to better engage their employees in the knowledge of the organizational structure. It is important as instilling this kind of knowledge will give the employees an idea that they are a part of a bigger process than just the jobs that they are tasked to do. If they do not do their duties, the entire organization may suffer a part of its processes.
An organization chart also helps the company to be guided about the entire workflow and making sure that objectives can be met by following the work structure. It helps people see an established way of performance relations and how the linkages can affect the work cycle of every department.
Other importance of an organization chart are as follows:
If you are currently employed or is about to enter a new company, make sure to check your organization structure and take note of the things that have been mentioned above.
Other than an organization chart, we also have a Control Chart sample that is available for download.