Following are the advantages of an organisation chart :
i) It is a tool of administration which indicates graphically to the employees how their positions fit into the total organisation and how they relate to each other.
ii) It shows at a glance the lines of authority and responsibility. It is a reliable, blue print of how the positions are arranged. From it, the individuals can have a sense of the limit of their authority, and can see who their associates are, to whom they have to report, and from whom they are to receive instructions.
iii) It serves as a valuable guide to the new personnel in understanding the organisation structure and the inter relationship between its units and sub-units.
iv) It provides a framework of personnel classification and evaluation systems.
v) It plays a significant part in organisational improvement by reflecting inconsistencies and deficiencies.
With an overview of the total organisation depicted in the chart management may discover unintended gaps, overlaps, etc., in the distribution of tasks and functions.
