The Limitations of Organizational Charts
Over-reliance on org charts can negatively impact communication, productivity, and flexibility. This article explores the limitations of org charts, including how they lack informal relationships, get outdated quickly, and are not flexible.
All businesses need structure. You can’t have employees running around like headless chickens. There needs to be clearly defined roles and responsibilities.
This is where org charts come in handy. They provide a visual representation of the formal reporting relationships in a company. You can easily see who reports to whom with a glance at an org chart.
But many leaders put too much faith in org charts. They think if they have the boxes and lines configured in some optimal format, their business will run smoothly.
I hate to break it to you, but org charts have some serious limitations and downfalls. Keep reading to find out what they are and how to supplement your org chart to avoid issues.
They Lack Informal Relationships
The main problem with org charts is that they only depict formal hierarchies and chain of command. They fail to show the complex web of informal work relationships that form within teams.
For example, an org chart may indicate that:
- Mark in sales reports to Sarah, the sales manager
- Sarah reports to you (the business owner)
This makes it look like communication flows neatly from Mark to Sarah to you.
But what if Mark is friends with one of your product developers, Tanya? Let’s say Tanya gave Mark early access to a new feature, so now Mark is providing feedback directly to her, bypassing Sarah altogether.
The org chart doesn’t show any of these informal workflows and connections.
They Get Outdated Quickly
Another limitation is that org charts get outdated fast.
As your business grows and changes, you’ll continuously need to shuffle people around and create new positions. Before you know it, your org chart is just a relic of the past, not an accurate map of your current organizational structure.
But do leaders pause and take the time to carefully redraw the org chart whenever there’s a change? Of course not! They’ve got a million other things demanding their attention.
So people keep passing around outdated org charts, which causes confusion. New hires and team members may struggle to navigate all the unofficial changes that have taken place since the last major org chart overhaul.
They Are Not Flexible
Org charts also tend to lack flexibility. They make organizations look more rigid and siloed than they are (or should be).
For example, in the real world, employees may collaborate with peers in other departments or take on responsibilities outside their roles.
A social media manager may help brainstorm content ideas. A sales rep could provide feedback about a product bug.
However, since the org chart shows formal reporting lines only, people might feel discouraged from going outside their box or working cross-functionally across teams.
How to Overcome Org Chart Limitations
As you can see, overreliance on org charts can negatively impact communication, productivity, and flexibility within your org.
The key is not to abolish org charts altogether. They still hold value as a snapshot of formal hierarchies and high-level workforce structure.
But you need to view your org chart as one piece of the puzzle rather than the whole puzzle.
Supplement it with things like:
- Employee directories with contact information and areas of expertise
- Cross-functional committee meetings
- Software or tools showing how work actually flows between people and teams
Keep your org chart, but don’t assume it tells the full story or accurately reflects reality. Think of it as a starting point, not the endpoint.
Stay flexible. Foster open communication and collaboration. Watch out for silos. And you’ll sustain a culture where information and creativity can circulate freely across artificially constructed boundaries.
