unit 5.3: Organization Charts

Organization Charts

Diagrammatic representation of a firm's formal organizational structure

What do organization charts show

1. The span of control: Number of Staff directly accountable to a single line manager

2. Different functional departments: 

3. Chain of command:Shows the various positions of authority in the organization

4. Official channels of communication: the route that messages are communicated within the organization

5.  levels of hierarchy

Flat/ horizontal charts

Only a few levels in its organization chart

•  minimal levels between operators and the CEO -  wide span control

•  Plus an importance on delegation and communication 

  •  also eliminates alienation culture

  •  helps Foster creativity

• it's cheaper to operate

Tall/ Vertical charts

many levels in the organization chart

•  managers tend to have a more narrow span control

  •  emphasis put on subordinates reporting to their line manager

•  very tall organization structures tend to be bureaucratic and rigid -  tons of rules and policies that everyone must follow

  •  their disadvantages are the advantages in flat organization structures

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Adv to tall charts

• •  or more effective communication with smaller teams

  •  easier to control or manage

  •  more specialization and division of labor

  •  and greater opportunities for promotion which can be a motivation Factor

Organization by product

• choose to structure their HR according to the various types of products produced or sold each Department focusing on a different one

Organization by function

• organized by function and the different operational roles they hold

Organization by region

• delegated by the geographical region there and usually in multinational companies allows them to be more aware and responsive to local and cultural differences