Organization Chart
The organization structure of a company can be shown in a chart. Such a chart indicates how different departments are interlinked based on authority and responsibility. It is a simple diagrammatic method of describing an organization structure. It indicates how the departments are linked together based on authority and responsibility. Such an organization chart provides information on the organization structure at a glance. An organization chart is like a blueprint of a building. It indicates the number and types of departments, superior-subordinate relationships, chain of command, and communication.
Definition of Organization Chart
According to George Terry, an Organization chart is "a diagrammatical form that shows important aspects of an organization, including the major functions and their respective relationships, the channels of supervision, and the relative authority of each employee who is in charge of each respective function."
Features of Organization Chart
The definition noted above indicates the following features of organization charts:
- An organization chart is a diagrammatical presentation.
- It represents the formal organization structure.
- It shows the lines of authority in the organization.
- It indicates the channel of communication.
- It indicates who supervises whom and how various units are interrelated.
Advantages of Organizational Chart
Brings clarity to the organization: The process of preparing a chart makes the executive think more clearly about the organizational relationships.
Provides a clear picture of the organization: Once the charts are prepared, they provide a lot of information about the organization, both to the members of the organization and to outsiders. This information relates to the number and types of departments, superior-subordinate relationships, chain of command and communication, and job titles of each employee.
Facilitates training of employees: Organization charts are useful in familiarizing and training new employees.
Ensures organizational changes: Organization charts provide a starting point for planning organizational changes after discovering the weaknesses of the existing structure.
Provides quick understanding: A chart serves as a better method of visualizing an organization than a lengthy written description of it.
Limitations of Organizational Chart
- Details are not provided: The organization chart does not provide all the details of the organization structure created. For example, the chart will show the line of authority but not the extent of authority.
- Informal relationships are not shown: The chart fails to give details of informal relationships available in a firm. In fact, human relationships cannot be shown on a chart.
- Updated position is not available: The chart shows the position of the organization structure when it was formed. Changes made thereafter may not be available in such charts.
- Fosters buck-passing: The charts tend to foster 'buck-passing' and emphasize only formal channels of communication.
- Lacks flexibility: The organization chart lacks an element of flexibility. Such a chart also brings an element of rigidity to the working of an organization.
- Creates rank consciousness: An organization chart leads to rank consciousness among the staff. It destroys team spirit and a collective approach on the part of the staff.
Types of Organization Chart
- Vertical chart: One of the most popular methods is the vertical chart in which the highest job is shown at the top with other jobs shown in a descending order, connected by lines to show the authority and the line of communication.
- Horizontal chart: This chart shows the organization structure in the form of a pyramid.
- Circular chart: The top management is shown at the center of the circle, and other management levels are shown in concentric circles.
- Departmental chart: This chart is devoted exclusively to a particular department and gives details of relationships, authority, responsibility, etc. within the department.
Uses of Organization Chart
An organization chart facilitates ready reference. It enables management to find out different positions of authority and their relationships in the organization structure.
It provides proper guidance to managers in executing their assignments and helps them avoid overlapping and duplication of work.
It provides complete information to understand the character of an organization.
An organization chart indicates ways to better utilize available manpower.
An organization chart points out the consistencies and deficiencies of an organization and enables management to correct them.
From India, Pune
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184The organization structure of a company can be shown in a chart. Such a chart indicates how different departments are interlinked based on authority and responsibility. It is a simple diagrammatic method of describing an organization structure. It indicates how the departments are linked together based on authority and responsibility. Such an organization chart provides information on the organization structure at a glance. An organization chart is like a blueprint of a building. It indicates the number and types of departments, superior-subordinate relationships, chain of command, and communication.
Definition of Organization Chart
According to George Terry, an Organization chart is "a diagrammatical form that shows important aspects of an organization, including the major functions and their respective relationships, the channels of supervision, and the relative authority of each employee who is in charge of each respective function."
Features of Organization Chart
The definition noted above indicates the following features of organization charts:
- An organization chart is a diagrammatical presentation.
- It represents the formal organization structure.
- It shows the lines of authority in the organization.
- It indicates the channel of communication.
- It indicates who supervises whom and how various units are interrelated.
Advantages of Organizational Chart
Brings clarity to the organization: The process of preparing a chart makes the executive think more clearly about the organizational relationships.
Provides a clear picture of the organization: Once the charts are prepared, they provide a lot of information about the organization, both to the members of the organization and to outsiders. This information relates to the number and types of departments, superior-subordinate relationships, chain of command and communication, and job titles of each employee.
Facilitates training of employees: Organization charts are useful in familiarizing and training new employees.
Ensures organizational changes: Organization charts provide a starting point for planning organizational changes after discovering the weaknesses of the existing structure.
Provides quick understanding: A chart serves as a better method of visualizing an organization than a lengthy written description of it.
Limitations of Organizational Chart
- Details are not provided: The organization chart does not provide all the details of the organization structure created. For example, the chart will show the line of authority but not the extent of authority.
- Informal relationships are not shown: The chart fails to give details of informal relationships available in a firm. In fact, human relationships cannot be shown on a chart.
- Updated position is not available: The chart shows the position of the organization structure when it was formed. Changes made thereafter may not be available in such charts.
- Fosters buck-passing: The charts tend to foster 'buck-passing' and emphasize only formal channels of communication.
- Lacks flexibility: The organization chart lacks an element of flexibility. Such a chart also brings an element of rigidity to the working of an organization.
- Creates rank consciousness: An organization chart leads to rank consciousness among the staff. It destroys team spirit and a collective approach on the part of the staff.
Types of Organization Chart
- Vertical chart: One of the most popular methods is the vertical chart in which the highest job is shown at the top with other jobs shown in a descending order, connected by lines to show the authority and the line of communication.
- Horizontal chart: This chart shows the organization structure in the form of a pyramid.
- Circular chart: The top management is shown at the center of the circle, and other management levels are shown in concentric circles.
- Departmental chart: This chart is devoted exclusively to a particular department and gives details of relationships, authority, responsibility, etc. within the department.
Uses of Organization Chart
An organization chart facilitates ready reference. It enables management to find out different positions of authority and their relationships in the organization structure.
It provides proper guidance to managers in executing their assignments and helps them avoid overlapping and duplication of work.
It provides complete information to understand the character of an organization.
An organization chart indicates ways to better utilize available manpower.
An organization chart points out the consistencies and deficiencies of an organization and enables management to correct them.
From India, Pune
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This is a well-written piece. Comparing organizational charts for similar industries can be beneficial in facilitating necessary adjustments and transitioning towards a leaner structure. It also helps to identify issues such as being top-heavy.
Regards,
V. Raghunathan
Navi Mumbai
From India
Acknowledge(0)Amend(0)
Regards,
V. Raghunathan
Navi Mumbai
From India
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