Organisation chart: The pattern of network of relations between the various positions in an organisation as well as between the persons who hold those positions is referred to as "Organisation chart". Organisation data are often shown in the form of graphic chart.
Organisation charts are the important tool for providing information on managerial positions and relationships in an organisation.
Meaning of Organisation Chart
According to Harold Koontz and Cyril O' Donnell, "Every organisation can be charted, for a chart is nothing more than an indication of how departments are tied together along their principal lines of authority."
In the words of George R Terry, "A chart is a diagrammatical form which shows important aspects of an organisation 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."
According to Louis A Allen, "The organisation chart is a graphic means of showing organisation data. Organisation charts are snap-shots; they show only the formal organisation and depict it for only a given moment in time."
In the word of J Batty, "An organisation chart is a diagrammatic representation of the framework or structure of an organisation."
According to Henry H Albens, "An organisation chart portrays managerial positions and relationships in a company or department unit."
From the above definitions, it is clear that an organisation chart is a diagrammatical form which shows important aspects of an organisation including the major functions and their respective relationships. It is a graphic portrayed of positions in the enterprise and of the formal lines of communication among them. It enables each executive and employee to understand his position in the organisation and to know to whom he is accountable. The organisation chart has the following characteristics:
The organisation chart should not be confused with the organisation structure. An organization chart is merely a type of record showing the formal organisational relationships which management intends should prevail. It is, therefore, primarily a technique of presentation.
Advantages of Organisation Chart
Disadvantages or Limitations of Organisation Chart
Types of Organisation Chart
An organisation chart can be drawn in different forms. They are:
Top-to-down chart or vertical chart: Most organisations use this type of chart which presents the different levels of organisation in the form of a pyramid with senior executive at the top of the chart and successive levels of management depicted vertically below that.
Top-to-down organisation chart
Left-to-right or Horizontal Chart: Horizontal charts which read from left to right are occasionally used. The pyramid lies horizontally instead of standing in the vertical position. The line of command proceeds horizontally from left to right showing top level at the left and each successive level extending to the right.
Horizontal organisation chart
Circular Chart: In this chart, top positions are located in the centre of the concentric circle. Positions of successive echelons extend in all directions outward from the centre. Positions of equal status lie at the same distance from the centre on the same concentric circle.
Circular Organisational Chart
Meaning of Organisation Manual
An organisation chart shows who has the authority over whom but does not state that extent of authority or the duties each person in the organisation is expected to perform. In order to supplement the information of this chart, an organisation may prepare a Manual or Management Guide. Manual sets down in the form of a book or booklet all the details of the organisation, its objectives and policies, authorities, functions, duties and responsibilities of each unit and all information relating thereto.
A Organisation manual can be a useful instrument of management which more than justifies the amount of work and money involved in its compilation. Where a good manual is in use, each person can determine the responsibilities of his job and its proper relationship with other jobs in the organisation. Jurisdictional conflicts and overlapping can be avoided. A manual provides quick settlement of all misunderstandings. It relieves the manager from the botheration of repeating the same information time and again. It provides uniformity and consistency in the procedures and practises. If, a good organisation manual is in use, each personnel in the organisation can know the responsibilities of his job and its relationship with other jobs in the organisation. Good organisation manual has the following contents.
Types of Manuals
The different types of manuals are:
Advantages of Manuals
Disadvantages of Manual
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