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Organizational
Charts
ORGANIZATIONS
 An organization, is an entity—such as a
company, an institution, or an association—
comprising one or more people and having a
particular purpose that functions on
relatively continuous basis. Organizations can
either be profit making or non-profit making.
E.g. bank, factories, schools, churches are all
organizations
ORGANIZATIONAL CHARTS
 An organizational chart is a diagram that
visually conveys an organization. It details the
roles, responsibilities, and relationships
between individuals within an entity.
 It shows:
 the levels of authority and
 Responsibility: the obligation to perform a
task efficiently or to see that the task is
completed efficiently. Responsibility brings
with it accountability. Hence, a person that is
given the right or power to command has an
obligation to do so.
ORGANIZATIONAL CHARTS
 formal relationship in the organization
 The chain of command of command
 the span of control (number of
subordinates/employees that report to
managers/supervisors.)
INTERPRETATION OF THE CHART

 The most senior positionis placed by itself

with no other position at that level
 All positions with the same levelof authority
but different departments are placed on the
same level
 Span of control – the number of subordinates
reporting directly to the manager. It can be
narrow or wide
 Chain of command-the route through which
authority is passed down from the chief
executive officer to the subordinates
TYPES OF ORGANIZATIONAL CHARTS

 Line Organization
 The line-and-staff
 Functional Organization
LINE ORGANIZATIONAL CHART
 A line organisational chart shows
how authority flows from the top
to the bottom In orgsanization.
An advantage of this system is
that it is inexpensive to maintain
and accountability is clear. A
major weakness of this Structure
is that it is suitable only small
organizations
LINE ORGANIZATIONAL CHART
FUNCTIONAL ORGANIZATIONAL
CHART
 The functional structure is designed
according to the functional area of a business
such as production, marketing, finance.
 Employees with closely related skills and
responsibilities (functions) are located in the
same department. The main advantage of
functional organization is efficiency. It works
best in small to medium-sized firms that
offer relatively few product lines or services.
FUNCTIONAL ORGANIZATIONAL
CHART
LINE AND STAFF
ORGANIZATIONAL CHART
 Line and Staff Organizational Chart combines
the line organization with staff departments
that support and advise line departments.
specialized and supportive activities are
attached to the line of command by
appointing staff supervisors and staff
specialists who are attached to the line
authority.
 The power of command always remains with
the line executives and staff supervisors
guide, advice and council the line executives
LINE AND STAFF ORGANIZATIONAL CHART
QUESTION
 Question
 Draw an organizational chart of a firm with:
 a. an executive director and his personal
secretary
 b. four divisions – Administration, Finance,
Production and Marketing
 c. marketing consultant
 d. the marketing division has a sales manager
and an accountant.
 e. What type of structure is displayed in this
organization?