The Human Side of the Org Chart: Why Structural Change Affects More Than Operations

In today’s fast-moving business world, organisational structures are under constant review. Leaders redraw org charts to stay agile, respond to market shifts, or streamline operations. On paper, these changes can make perfect sense. But in practice, even small shifts in structure can ripple through a workplace in very human ways.

When reporting lines shift or team boundaries are redefined, it is not just workflows that change, it is relationships, roles, and routines. People start to ask: Where do I fit? Who do I go to? Am I still valued here? Without clear answers, these structural shifts can quietly chip away at motivation, trust, and wellbeing.

Research in organisational psychology shows that change, even with the best intentions, can become a stressor. Precisely, only 15% of employees strongly agree that their organisation manages change well (Gallup, “State of the Global Workplace,” 2023). When restructures are frequent or poorly explained, employees often experience what is known as "change fatigue." This can lower engagement and increase turnover risk, especially when people feel they have lost control or have not been consulted in the process.

Even in efforts to innovate, like flattening hierarchies or introducing cross-functional teams, issues arise if the deeper dynamics are overlooked. Role ambiguity, unclear expectations, and shifting decision-making power can create confusion and tension. In the absence of strong communication and psychological safety, productivity can decline even in the most agile of structures.

But the opposite is also true. When structural change is thoughtfully planned and communicated, it can create energy, clarity, and renewed purpose.

A few things make the difference:

• Explaining the why behind the change; not just the what

• Aligning new structures with how people actually work

• Creating space for feedback and shared ownership

• Supporting leaders and teams through the transition; not just before it

At NARA Workplace Capability Consultancy, we approach structural change as a people and culture challenge, not just an operational one. We work with businesses to realign their teams not only around strategy, but around values, capability, and wellbeing. Our view is that agility means more than fewer layers; it means building trust, clarity, and adaptability into the way people experience work every day.

Organisational design matters. But how we do structural change, how we hold space for people during it, matters even more. Change is not the problem. The way we support people through it is.

To find out more about our work, reach out to our team!