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An organizational chart is a diagram that shows the structure of an organization and the relationships and relative ranks of its

parts & positions/jobs.

An organizational chart of a company usually shows the managers and sub-workers who make up an organization. It also shows the relationships between the organization's staff members which can be one of the following: Line - direct relationship between superior and subordinate. Lateral - relationship between different departments on the same hierarchical level. Staff - relationship between a managerial assistant and other areas. The assistant will be able to offer advice to a line manager. However, they have no authority over the line manager actions. Functional[1] - relationships between specialist positions and other areas. The specialist will normally have authority to insist that a line manager implements any of their instructions. board of directors : managing director cheif executive officer: various departmments... In many large companies the organization chart can be large and incredibly complicated and is therefore sometimes dissected into smaller charts for each individual department within the organization.

Organization charts are an extremely effective way to communicate organizational, employee and enterprise information. An org chart makes it easier for people to understand large amounts of information as a visual picture rather than as a table of names and numbers. Organizational charts provide the greatest value when used as a framework for managing change and communicating current organizational structure. When fully utilized, org charts allow managers to make decisions about resources, provide a framework for managing change and communicate operational information across the organization.

Every organization has both a formal & informal org. structure. Examples: -FORMAL Hierarchial structure (for the small, entrepreneurial org.) Functional str. Matrix str. It graphically shows the hierarchial authority, roles & responsibilities, functions & regulations within an org. For a new employee, the org. chart helps to understand what should happen within the firm. INFORMAL: represents what is actually occuring within the org.






Defining the roles & responsibilities of all personnel within the org. Establishing a hierarchial structure of authority , power & hence decision-making. Establish communication channels, & information flows. Establishing control mechanism such as the degree of centralisation & the span of control. Establishing decision-making process.

Org charts are transparent & predictable. Helps to understand what should happen within the firm. Who is in charge of what ; Who reports to who. Provides a quick snapshot about the hierarchy in an orgz.