Organization structure may be presented in the form of on organization chart that shows all the positions in an organization and their formal relationships to one another.
Organization
Chart
Organization structure may be
presented in the form of on organization chart that shows all the positions in
an organization and their formal relationships to one another. It illustrates
an organization’s overall shape and the levels of management in a
comprehensible manner. The organization chart of a typical company structured
on functional basis is presented in the following chart.As could
be seen in figure, an organization chart shows: -- The hierarchical structure that is typical of most organizations; --
The number of management levels;
-- Scope of authority and status of the individuals as indicated by
the location of their position in relation to other positions;
-- How an organisation’s activities are grouped in terms of departments
(whether by function, by product, territory and so on);
-- The work being done in each position (indicated by the labels in
the boxes);
-- Interaction of people as indicated by the horizontal and vertical
lines connecting various positions/ departments;
-- Relationships between superiors and subordinates in terms of who
reports to whom, that is, the chain of command;
-- How many subordinates report directly to each manager, that is the
span of management;
-- Career
progression, and
-- Formal channels of communication (indicated by the connecting
lines).
However,
an organization chart does not show:
-- Interactions between people who have no official reporting
relationships, that is, the informal organization;
-- The ongoing dynamics of workplace behavior;
-- Personal preferences
and coalitions;
-- Informal communication channels; and-- Interference
by outsiders. The organization chart of any
company, therefore, enables one to understand easily three classical principles
of organizing, viz., chain command, unity of command and span of control.
Tags : Management Concepts & Organisational Behaviour - Organisation Structure And Design
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