Organization charts and manuals are prepared to describe an organization's structure and used as management control tools. An organization chart is a diagram that shows hierarchical relationships and lines of authority and accountability within an organization. It aims to clearly depict the formal reporting structure that executives intend. Organization charts and manuals improve internal and external communication by providing a shared understanding of an organization's structure.

1. Organizational Charts & Manuals
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2. Objectives
• Haveknowledgeabout meaning&definition,
contents oforganisation chart.
• Learnabout types oforganisation chart.
• Know about organisation chart revision
selection, its importance
• Understand principlesoforganisationchart
advantages, disadvantages.
• knowabout organisationmanuals its
advantagesdisadvantages. 2

3. Introduction
3
• Organization charts &manualsare prepared for
the purpose ofdescribing the organization
structure.
• Organization charts &manualsare usedastools
ofmanagement control.
• Anexecutivefindshisexact placein the
organisationin the organisation chart.

4. Introduction
• Organization Chart
– Achart that showsthe structure ofthe organization
includingthe title ofeachmanager’sposition and,
bymeansofconnectinglines, whoisaccountableto
whomandwhohasauthority for each area.
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5. Definition
5
• Terry :”Diagrammaticform showing
important aspectofan organization”
• Henry H. Albens:”Portrays managerial
position &relationship in the company”
• McFarland:”Anorganizationchart isatype of
record showingthe formal organizational
relationship whichexecutives intend”.

6. The structure of organization
Upper
levels
Middle Levels
Lower
Level

7. Contents of
Organisation Chart
7
• BasicOrganistionstructure
• Authority &relationship ofvarious executives
• Relationship between line &staff officers
• Number ofpersons in organization
• Waysof promotion
• Salaryparticulars
•

8. Types of Organisation
Chart
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• Vertical Chart
• Horizontal Chart
• Circular Chart
• Master Chart

9. The Organizational Chart
Contemporary Landscape
Services, Inc.
President/Owner
Mark Ferguson
Retail
Shop
Manager
Landsca
pe
Operation
s
Manager
Buy
er
Office
Manag
er
Resident
ial
Manage
r
Commerc
ial
Manage
r
6 - 9
Nursery
Manager
Buyer Superviso
r

10. Principles of
Organisation Chart
10
• Observation oflines ofauthority bytop
executive.
• Observation oflines ofauthority by
subordinates.
• Definingline of position.
• Non assignmentofsameduty twice

11. Principles of
Organisation Chart
11
• Avoidunique concentration
• Organisational Chart shouldbe above
personalities
• Simpleand flexible

12. Advantages of
Organisation Charts
12
• Givesclear picture oforganisation inasimple
way
• Showslevelsof authority
• Instructing work is simple
• Authoritative sourcesof information.
• Improvescommunication both inward &
outward
• Outsiders of the organisation canhaveaquick
view

13. Limitations of
Organisation Charts
13
• Mostorganisationcharts are just likephotos
taken ofa instant.
• Creates more rigidity .
• Ifthe charts are not correctly prepared ,they
will mislead interface.
• Thewords &lines usedin anorganisationchart
givesdifferent meaningto different people

14. Multiple Forms of Departmentalization
6 - 14
Preside
nt
Vice
President
Marketing
Vice
President
Productio
n
Vice
Presiden
t
Finance
Texas
Plant
Manage
r
Oregon
Plant
Manager
Florida
Plant
Manager
Consum
er
Product
Industri
al
Produc
Consum
er
Product
Industri
al
Produc
Consum
er
Product
Industri
al
Produc
Functional
Departmentalization
Geographical
Departmentalization
Product
Departmentalization

15. Organisation Manuals
• organisationmanualisadocument prepared to
furnishinformation on aparticular organisation
• Asmallbook containinginformation about:
– FullnameAddress etc
– Telephone numbers, addressofbranchoffices,
showroomif any.
– Top executives names
– Important departments
– Rulesregardingleave,promotion &transfer etc.
– Organisation charts
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16. Advantages of
Organisation Manuals
• The employeesget clear picture oforganisation
in asimple way
• Blueprints rules andregulation are followed by
employee
• Thedecisionstaken bythe managementare
givenin elaborate manner.
• Helpsnew person to knowabout organisation.
• Organisationconflictsare avoided
• Increasesgoodwill with Outsiders of the
organisation 16

17. Disadvantages of
Organisation Manuals
• The organisation Manualsget outdated soon
• Humanrelationship definedin Manualsmay
not followed in practice.
• Muchtime isrequire to keep Manualsup-to-
date.
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18. Summary
• Organizationcharts &manualsare prepared for
the purpose ofdescribing the organization
structure.
• Organizationcharts &manualsare usedastools
ofmanagement control.
• Anorganizationchart isatype ofrecord
showingthe formal organizational relationship
whichexecutives intend.
• Organizationchart improves communication
both inward &outward. 18