WHAT IS AN ORGANIZATION CHART? DESCRIPTION
Every organization has both a formal and an informal organizational structure. Examples
of organizational structures are:
* Hierarchical structure (typical for the small, entrepreneurial organization)
* Line-staff structure
* Functional or Departmental structure (based on function, products/service, customer
type, geographic region)
* Matrix structure (dual reporting lines)
These formal structures of organizations can be represented in the form of an organization
chart. Sometimes also referred to as organizational chart, organigram, organogram, or org
chart. It graphically shows the hierarchical authority, roles and responsibilities, functions
and relations within an organization. For a new employee, the organization chart helps to
understand what should happen within the firm. (The informal structure represents what is
actually occurring within the organization.)
Many people have pointed out weaknesses and limitations of org charts. Others have
coined a dizzying array of buzzwords to categorize organizations, including networked
organizations, transnational organizations, front-back organizations, boundaryless
organizations, learning organizations, virtual organizations and social networks.
Nevertheless organizational design continues to be one of an important and challenging
demand on top management, because it influences and interconnects the business and
corporate strategy, marketing, decision-making, communication, finance and investing,
and leadership within any organization. And organization charts will continue to play a
major role in this process, although they may look quite differently from the traditional
tree-like forms of the past. Simply because people can more quickly absorb information
when it is shown in a graphical way.
ORIGIN OF THE ORGANIZATIONAL CHART. HISTORY
It is not unlikely that the ancient Egyptians already had documented their methods of
