The key aspects of the organisation, after division into different departments, are shown through organization charts, which are graphic representation of a firm’s structure. According to Leffingwell and Robinson, “An organization chart is a plan of working relationships. It shows who is to do the work that is to be done and who is to direct and supervise the efforts of those who are to do the work.”organization charts reflect the organisational game plan for division of work, they give ‘a complete and intelligent guide to company organisation’, they indicate the flow of work and the responsibility for its achievement. Important aspects of the organisation for example (a) chain of command, (b) unity of command, (c) communication channels, (d) departmentation, (e) levels of hierarchy, (f) span of management, (g) division of work are shown. In a formal chart only functions and the designations of the individuals appear, visualising the organisation structure. Characteristics/features of the organization chart:
1. Depicts the organisation’s formal structure and shows only formal relationships.
2. Does not insure good organisation or good management; merely because a chart is in existence it is no guarantee for good organisation.
3. Essentially illustrates who reports to whom.
4. Merely shows the designations of the individuals, thus no names appear, only functions, e.g., Sales Manager, Financial Advisor, etc.
5. Reflects a simplified and abstract model of the organisation’s structure; they do not show human relationships; it is said that an organisation chart is like a snap shot; it is a static model of a dynamic, living process.