Organisational charts Flashcards
What is an Organisation chart?
An organizational chart is a pictorial
diagram of an organization.
Line Organisation structure?
Line organizational -
authority flows from top to
bottom.
Line organisation advantages
ADVANTAGES
I. Simple and easy to understand
II. Lines of authority well defined
III. Decisions can be reached quickly
IV. Employees are clear about
whom they report to
Line organisation disadvantages
DISADVANTAGES
I. In a line organizational chart,
having too many management layers can hinder effective communication between top management and lower-level employees.
II. The structure is rigid and will not
be able to show cross
departmental teams or support
function teams.
III. Dictatorial
IV. Overloads key persons
What do line structures suit the best?
Small size businesses
Where the number of persons
working is small
The business operation is simple
in nature
Where the activities are of routine
nature or machine based.
What is a staff organisation
structure?
It is an expansion of a line organisation.
It comprises all the non-revenue-generating
personnel or departments that make the
functions of the line possible for example,
HR, IT, Legal and Security departments.
Limitations of Organisational Charts
- Organisational charts do not reveal the leadership style
used by management in governing over the activities of the
business. - Organisational charts do not reflect the informal
relationships that exist in an organisation, which can
significantly influence the success of the enterprise. - They may become very complex and difficult to
understand as a business grows.
In the Chain of Command, how are most companies organized?
Most companies are organised in the
form of a pyramid.
Who has the most control?
The person at the top of the pyramid has
the most authority and the steps down
the pyramid indicate less authority.E.g. CEO
To whom is each person in the pyramid responsible?
Each person in the pyramid is responsible
to the person immediately above.
What do the sections below the top section make up?
The sections below the top section make
up the chain of command.
What does the chain of command show?
It shows the lines of communication
between the person in a supervisory
position and their subordinates.
What is does the span of control refer to?
The number of people or
departments one person in a
managing role supervises is
referred to as the span of
control.
What is a wide span of control?
If workers do not need close
supervision, the span of control
can be wide and flat.
When is a narrow span of control used?
Where there is a need for closer
supervision, the span of control
will be narrow.
