Organisation Chart

An organisation chart shows a diagrammatic representation of important aspects of an organisation including the major functions and their relationships. It is a blue print of company organisation, its functions lines of authority and way positions. In other words, it is a graphic portrayal of positions in the enterprise and of the formal lines of accountability among them. 

It provides a bird’s eye-view of the relationships between different departments of divisions of an enterprise as well as the relationships between the executives and subordinates at various levels. It enables each executive and employee to understand his position in the organisation and to know to whom he is accountable. Thus, it is obvious that an organisation chart has the following characteristics :

1)     It is a diagrammatic presentation.

2)     It shows principal lines of authority in the organisation.

3)     It shows the interplay of various functions and relationships

4)     It indicates the channels of communications.

The organisation chart should not be confused with the organisation structure. An organisation chart is merely a type of record showing the formal organisational relationships which management intends to prevail. It is, therefore, primarily a technique of presentation. It presents diagrammatically the lines of authority and responsibility among different individuals and positions. It may be either a personnel chart or functional chart. Personnel organisation chart depicts the relationship between positions held by different persons. Functional organisation chart depicts the functions or activities of each unit and sub-unit in the organisation.

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