One last thing to mention. Tar is ok...but if you are talking about the entire system
as in rootvg being able to be recovered, you are indeed not backing everything up.
Only a mksysb will backup the size of the logical volumes, create a bootable tape and back up the information that can be recovered if the system crashes. A mksysb is what is needed...I recommend monthly, or at least every time the passwords change, and other system information changes.
If you are talking about just your data being backed up with a tar....and you already have the system stuff backed up, you should be ok......