In a business organization, employees are supposed to be aware of their rank and know who their immediate supervisor is. This helps make sure that business processes run as smoothly as possible.
With that, it’s important for business enterprises to perfect their organizational charts or org charts. To help minimize errors and ensure accuracy, here are some of the most common errors that people make when creating org charts and which you should avoid.
Table of Contents
Mistakes To Avoid In Making Organizational Charts
1. Using Outdated Tools
Back then, the most common way people create a visual representation of their organizational structure is by using pen and paper. An alternative was to use a program that was not meant for such a purpose. Word processors are excellent examples.
While those methods got the job done, they took a lot of time. Creating charts by hand took hours because it involved several processes.
Designers needed to create individual boxes and place them in proper order. Plus, they needed to connect each one to the right places.
After a couple of months, when new hires come in and old employees get promoted, the charts require revisions. That means spending even more time coming up with a new one.
With new tools available, businesses no longer need to spend as much time creating organizational charts. Venngage, for example, enables users to generate live and data-rich organizational charts within minutes. It comes with tons of templates even beginners can use.
2. Confusing Organizational Chart Position
One common misconception is that the top spot of an org chart can only be occupied by the person in charge of everything. It’s not always the case.
There are leaders who may have various responsibilities but aren’t sitting at the very top of the charts. Good examples include supervisors, directors, and project managers.
In modern org charts, highlighting the leaders and what they’re accountable for is easy. And with such features, there are fewer chances that people will misinterpret positions and responsibilities.
3. Showing Only The Reporting Relationships
An organizational chart isn’t just good for showing who’s on top and the people reporting to them. Org charts are actually versatile. You can use them for different purposes.
For example, you can create an org chart for project management. Organizational charts are also good for onboarding new hires, planning restructuring projects, and so much more.
Basically, despite the name, org charts aren’t limited to reporting relationships and showing hierarchy.
4. Not Changing The Structure To Reflect A Change In Strategy
When your business comes up with a new strategy, you need to update the structure as well. In doing the revision, make sure that your chart isn’t following the old one to a huge degree.
To make your organizational chart more effective, you need to let go of the past. Start designing one with an improved structure and with a fresh eye.
The process is easier said than done. In fact, it can actually feel daunting. Employees may even fight the changes you’re implementing because of loss of power — either real or perceived.
In changing the structure, you need to understand the different types of organizational charts. Make sure that you are using the correct one.
A flat structure, for example, is best used by small businesses. This type requires the creation of a horizontal structure with no middle managers between the executives and staff.
A hierarchical structure, on the other hand, is shaped like a pyramid. It’s a good design to use when you want to show a traditional business structure.
At the top sits a single person who oversees everything. The spot is followed by the managers and their dedicated employees.
Meanwhile, a matrix structure shows relationships across your entire business. It doesn’t just show relationships vertically.
This is highly recommended for businesses that require dividing teams based on products and projects.
By knowing their basic differences, you’ll be able to change the structure of your chart in a way that’s most effective for your business.
5. Ineffective Span Of Control
A too narrow or too wide span of control won’t be good for any business. In fact, it’s one of the most common reasons why businesses suffer from inefficiency.
For example, an organization with a small number of employees but several departments show a span of control that’s too narrow. In this case, the business isn’t just paying more people with manager-level salaries but it’s also causing the entire organization to be ineffective.
6. Improper Delegation
When making a company organizational chart, you shouldn’t just focus on design and flow. For the chart to actually be effective, you need to match people with the right jobs.
Each person has a different style. When your employees are given a job that meets their natural style, you can expect them to perform at their highest level. This translates to improved productivity and better output.
Although making organizational charts is a common task in business, both employees and business owners can commit a mistake or two along the way. With this list and a good tool like Venngage, you can make your next chart error-free.