Organizational Chart
Organizational Chart
An organizational chart also represents lines of authority and responsibility. Generally, an organizational chart is a horizontal or vertical tree that contains geometric shapes to represent staff or divisions. The lines that connect the shapes indicate relationships between the positions. An organizational chart indicates the formal structure of a business or company. Most often, a rectangle represents a person, position, or department. In a hierarchical organizational chart, the Chief Officer or President is the top rectangle. The level underneath the chief officer contains high-level managers or executives, and each succeeding level includes the subordinates of the line above. In standard organizational charts, the shape is similar to a pyramid. Often, box size is relative to the authority level of the position; for example, an executive position may have a larger rectangle than a subordinate position. Peers generally have boxes of similar size on an organizational chart. Lateral positions on an organizational chart indicate a relationship between departments on the same level of hierarchy in the organization.
USAGE OF ORGANIZATIONAL CHART Defining the roles and responsibilities of all personnel within the organization. Establishing a hierarchical structure of authority, power and, hence, decisionmaking. y Establish communication channels and information flows, incorporating a chain of command with specific rules and regulations relating to reporting procedures and accountability methods. y Establishing control mechanisms, such as the degree of centralization and the span of control. Compare: Centralization and Decentralization. y Establishing strategies for co-ordination of work practices. y Establishing decision-making processes. y Establishing specific operational functions and tasks.
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