Departmentation

ORGANISATION CHART

Meaning of Organization chart:

      An Organization chart is a graphic record showing the format organization structure and the superior subordinate relationship. It shows department and division at the enterprise, the flow of authority as well as the accounting ability of the management hierarchy.

      The organization chart depicts the relationship between the various position in the organization. It can be seen that the managing director occupies the top position in the management hierarchy under him there are various functional Marketing Manager, etc.

        According to George Terry, “an organizational chart is a diagrammatical
form, which shows important aspects of an organization 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".

Uses of An organization chart:
        • An organization chart shows clearly the various positions in the organization and how they relate to one another. It provides a clear understanding of how a job contributes to organizational objectives.
        • It shows at a glance the lines of authority and responsibility. From it individual can identify the limit of their authority. It servers as a blue print of the Organization and helps to clarify assignment of duties.
        • It provides a basis of planning organizational change.
        • It provides guidance to outsiders as to whom they should contact.
        •   An organization chart provides a frame work for classification and evaluation of personnel. It also provides clues to the lines of promotion. It also facilitates communication.

Organization structure:

              Organizational structure allows the expressed allocation of responsibilities for different functions and process to different entities such as the branch, department and individuals in organizational structure are normally hired... [continues]

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