Org chart 2356

  • What is your view on org charts? Have you seen companies without one? Do you see it being a potential internal control issue if a multi-billion dollar company does not have one? I have been told that our company’s philosophy is not to use org charts, so that people can feel free to share ideas at any level. I personally don’t want to comment on this approach, and all companies I dealt with before have org charts to some extent. I think it provides a general structure for the company’s operations.
    Any thoughts would be appreciated.

  • I don’t see the presence or absence of an org chart as significant at all. The real thing you should be looking for is the line of reporting to ensure that there is proper SOD within the organization. This is more of a fraud and tone-at-the-top control. Existence of org charts helps to make this an efficient analysis. Lack of an org chart really complicates this process. One way to get at what you need for significant positions is to look at annual performance appraisals to see who really reports to whom.

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