Definition of Organization Chart
When the structure of an organization is
shown in a diagrammatic form, it is known as an organization chart. Remember
that what we have said concerning the structure of an organization. It consists
of levels and position which indicate the main activities that are being
performed in order to attain the objectives of an organization.
The organizational charts indicate the
formal organizational relationships among executives. The chart also clarifies
who supervises as well as the main lines of communications. The flow of
authority and responsibilities are shown in the chart. You can see the
importance of good organization chart. You can then see the need why an
organization should have a good organization chart. But a chart cannot possibly
supply all the detailed information required to have a clear understanding of
an organization. This is why another document called organization manual is
prepared alongside the organization char, where the chart stops in the prevision
of information concerning an organization.
The manual takes over. Such information include:
organization history, the culture of an organization, careful description of
jobs among other relevant information.
Advantages
of a chart
It
helps executives to appreciate them by providing clear pictures with regard to
job position and duties and how they fit into the organization as a whole.
It
helps to avoid overlapping authority by providing clear visual and detailed
picture of lines of authority and responsibilities. Together with manuals, they
help to foster unity of command.
It
affords managers to think of ways of improving the organizations when marking
new editions of charts. This is because they must analyze the activities
necessary to accomplish objectives. Only the essential ones are included in the
chart, and resources deployed accordingly.
A chart provides source of authoritative
information. It facilitates management developing and training.
Limitations for Organization Chart
Organization
Charts and manuals do not guarantee good management. Managers still need to
apply their skills in the process of management.
In
practice there are frequent changes which are unavoidable. It is difficult to
revise the chart each time these changes occur, thereby making the chart out of
death.
It
is difficult to include in the chart everything that is going on in the
organization. The chart only shows a static picture. Also a chart only provides
formal relationships. The informal ones are excluded.
Human
beings are generally sensitive to their relative positions and status in the
chart. Hard feelings and resentments may be caused by showing their positions
and status to the outsiders.
Each
individual often attempts to stick to areas charted for him, defends his own
jurisdiction and avoid.
There is high cost of preparing, and
circulating charts which may be higher than the benefits.
Criteria
for Drawing a Chart
There
are standard criteria which are necessary for proper drawing of a chart so as
to carry to the reader the actual information that is intended. These criteria
are sometimes called rules for drawing a chart and they include the following:
1.
Title
There
should be a title for every position in the chart. This is necessary so that
one position will be distinguished from the others. Care should be taken so
that titles are not repeated. That is why before a position is created, careful
consideration as to what the title should be would have been thrashed out.
2.
Position
There
should be positions which must be clearly indicated. Positions of the same
status that is, of the same line must occupy the same horizontal line. For
example, the functional managers which we have earlier identified to be
production manager, personnel manager, finance manager and the marketing
manager must occupy the same horizontal line. Any one of the positions dropping
below means that the position is inferior to the others. Note that authority
resides in the position. That is why we always stress that each position with
responsibility must attract commensurate authority. This is necessary. We will
further discuss in detail and the exercise of authority in our next course in management,
which is the principles and practice of management.
3.
Heads
At
the introduction stage in our discussion of the management function of
organizing, we noted that the assignments must be given to individuals and
groups having identified and tied together the basic activities necessary to
achieve organizational objectives. That is why there are groups of personnel
such as personnel department, production department, marketing department and
finance department all performing specific duties relating to their
departments. Each of these departments must have a head commonly referred to as
head of department. All the other personnel in the department are answerable to
the head of department, who carries out the management functions.
4.
Lines of Communication
These
lines are provided indication to the flow of communication in the organization.
You have to note that the flow of communication vertical, that is four the
superior officer drawn to the subordinates, from the subordinates to the superior
officer. It can be horizontal, that is, managers for example communicating with
one another. Communication can still be diagonal. This is seen when an employee
communicates with another employee through his head of department to another
employee in the organization.
5.
Lines of Authority
Line
of authority is another criteria or rule to be observed in the process of
drawing up a chart. Authority, you may recall flows from the top to the bottom
and never from bottom to top. You must also remember that each position is a
position of authority. That is why such authority is called position authority
or legitimate authority. It is the authority that the person occupying the
position uses to influence the behaviors of those working under him.
6.
Relationships
Important
relationships should be clearly indicated in the organization. A part from the
line relationship or line authority which we have just discussed, staff
relationship, that is, those who offer advisory services should be clearly
indicated in the chart.
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