An organizational chart is more than just a two-dimensional snapshot of your company's hierarchy. When used correctly, the organigram becomes a living document that can be used as a powerful tool for workforce planning. It helps HR professionals make the right HR decisions that drive growth and is a great tool for strategic planning.
Let's explore the connection between your organization chart and strategic growth.
Why does a company need an organization chart?
Many managers of small or even medium-sized companies mistakenly assume that they do not need an organizational chart due to the size of their firm. However, the opposite is true. A well-designed organizational structure should be an integral part of the strategic planning of any company, regardless of its size.
What can an effective organigram do?
An effective and properly set up organization chart brings a number of benefits:
- Explains the workflow and responsibilities of your employees.
- Displays employee interactions.
- It helps employees understand where to look for support or answers to specific problems.
- They can visualize HR data to help make the right personnel decisions, support the fulfillment of business goals and help the company grow.
- It sets career growth options and solves the processes of multitudes and succession.
Career growth plan as a necessary complement to the organization chart of the company
The most enduring thing about a business is change. No one is immune from it. Therefore, a vital tool for the long-term growth of your business must be quality preparation for the inevitable future change. Without a doubt, part of this preparation is the planning of human resources with respect to who will lead the company into the next generation. Therefore, supplement the formation of an organigram with the preparation of a career growth plan.
A career growth plan helps you identify, mentor, and develop high-potential employees. The plan should include not only the leadership functions, but all levels of the organigram in your organization.
Why is it advisable to supplement the organigram with a career growth plan?
Solved simply, your organizational chart shows the current state of the company. A career growth plan, on the other hand, is a hypothetical graph that shows the future version of your organization chart.
The two instruments are therefore linked and strategically relevant. If you do not have a high-quality organigram created, we have a guide for you on how to prepare it in five simple steps and link it to your career growth plan.
Assess your business needs and analyze the current situation
Start the creation of the organization chart of the company by answering the following questions:
- What areas will we need to develop to achieve the expected growth?
- Are we going to want to build a new division or team?
Based on the answers to these two questions, then analyze the current state of your organizational structure and identify the “white spaces” that can bring problems in meeting the company's goals.
Identify key roles
Research your entire company and identify the roles within the team that are most important to the productivity and performance of your business.
When identifying key roles, first of all, take into account the following characteristics of a given job position:
- Number of employees who are subordinate to a given position
- Scope of control and decision-making powers
- Managed budget
In the next step, it is essential to estimate future developments in key roles. First of all, it is advisable to focus on:
- Monitoring whether some of the employees in the most influential roles are not of pre-retirement age.
- How would you handle the sudden departure of an employee working at a specific location.
- What skills and qualifications are important to fill key roles.
Identify strengths and weaknesses
The departure of a significant and key employee for the company's operations is a challenging challenge for any company. With a properly set organizational chart, you can already identify weaknesses in your management structure before its departure and work strategically to eliminate them. In addition, the organizational structure will show your management team a broad perspective, help them perceive the workforce of the organization as a whole and recognize quality employees.
When creating an organigram, consider:
- Who among the current employees could rise to the role of key worker in the future.
- What skills current employees have.
- What skills do employees need to acquire in order to master the role of a key worker.
Based on this analysis, prepare a development plan for individual employees. Ideally, such a development plan should include all potentially key employees.
Track potentially key employees
Knowing who the prospective employee is in your eyes, you can follow his development in detail and correctly identify the situation when he will be ready for promotion. This will prevent a situation where he might feel unappreciated and would start considering leaving. In addition, by identifying internal candidates for promotion, you will save both time and money spent on recruiting and training new managers.
Automate processes
The creation of a functioning organizational structure today cannot be done without an automated system. Only small companies with few employees can afford to create an organigram by hand. Larger companies, and especially multinational concerns with a large number of subsidiaries, cannot do without a program that creates an organization chart automatically. Involve in the formation of the organizational structure HR Software. Properly selected personnel software will guard the organizational structure for you, and with each change in the hierarchy of the company, it will also adjust the organization chart.
Are you ready to strategically plan your human resources and thus be ready for the future?
Try out the HR software Pinya HR to help you easily create an organigram, modify it and automatically edit it for you. Start your business growth, request access to the Pinya HR demo and test the benefits of HR software for your organization for free and without obligation.
