Question

How can the use of an Organizational Chart help a company run more efficiently? Give specific examples.

Answer 1

An organizational chart is a chart that provides a complete information about the structure, how a company operates, different levels of management, employees, more details of the company like different department or segments which are responsible for different activities or jobs.

An organization chart contains confidential information which is available inside of that specific organization and based on that information, the future plans how that organization should run by comparing the actual results of previous performance.

For example - An organization char of Volkswagen Motors shows the different companies that are under Volkswagen Company with different departments information for each company under it, for each product under each company with key persons responsible. It also contains different branches with multiple heads of the departments and employees. By using this chart, the higher officials of Volkswagen can plan how the organization should improve its performance compare with previous year or previous performance and also can plan how to plan to face challenges that were faced earlier.

Therefore, an organization chart provides more useful information in the development of an organization.