Homework Help

What are some reasons why an organization chart is helpful to a business?

user profile pic

nehasrivastav | Student, Grade 10 | (Level 1) Salutatorian

Posted September 24, 2012 at 2:07 PM via web

dislike 2 like

What are some reasons why an organization chart is helpful to a business?

1 Answer | Add Yours

user profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted September 24, 2012 at 2:20 PM (Answer #1)

dislike 1 like

An organizational chart can be important for a number of reasons.  Let us look at two of the most important of these.

First, an organizational chart allows everyone in an organization to understand the structure of the company.  They can understand the chain of command, knowing which departments and individuals answer to whom.  This allows a firm to work more efficiently as everyone knows who is in charge of what so there is no confusion about who to report to or who is supposed to be responsible for a given aspect of the job.  Each worker knows their place in the system and problems can be pinpointed relatively easily since responsibilities are well defined.

Second, an organizational chart can help provide incentives for entry-level employees.  They can clearly see what the hierarchy is within their firm and they can aspire to climb the corporate ladder.  The chart makes the steps in this process clearer, making them seem more attainable.

Sources:

Join to answer this question

Join a community of thousands of dedicated teachers and students.

Join eNotes