organisation charts an organisational chart is a diagram that shows the formal structure of an...
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Organisation Charts
• An organisational chart is a diagram that shows the formal structure of an organisation. An organisational chart shows:
• The relationship between staff • Who has authority • Who is in charge of the organisation and
each department • The chain of command and line of
communication
Oban High School Organisation Chart
Mr Bain
Mrs Pupillo Mr Cameron Mrs Leitch Mrs Lawson
Mr Milligan
Teachers
CHAIRMAN
MANAGING DIRECTOR
FINANCE ADMIN OPERATIONS INCLUDING MARKETING
CAR
RENTAL
CORPORATE
and
PRIVATE SALES
MAJOR ACCOUNTS
Eg LOCAL
AUTHORITY SALES
ARNOLD CLARK ORGANISATION CHART
Arnold Clark has functional departments for Finance, Administration and Operations.
It has different departments for different types of products it offers eg Car Rental and Sales.
It also has two departments that are divided according to customer grouping. One department targets corporate and private customers and another for major accounts suck as local authorities.
Chart adapted from www.arnoldclarkfinance.co.uk
For discussion
Forms of organisation structure
• The management structure in an organisation is another essential factor in its success. Why…
• The structure:– defines how the organisation operates– defines the role(s) of individuals within the
organisations and what authority they have– defines the relationship between groups and
between individuals– channels the activities within the organisation
towards the goals of the organisation– helps to make best use of scarce resources
Organisation Charts
H R S ta ff
P e rson n e l O ffice r
H R M an a g er
F in an ce S ta ff
A ccou n ta n ts
F in an ce M a na g er
O p era tion s S ta ff
W o rks Fo re m an
O p era tion s M a na g er
M a rke tin g S ta ff
M a rke tin g S u pe rv iso rs
M a rke tin g M a na g er
A ss ista n t G e ne ra l M a na g erT yp e t it le h e re
G e ne ra l M a na g er
An organisation chart shows the formal structure of an organisation and clearly shows:
• lines of communication – 2-way from top to bottom• lines of authority – between superiors and subordinates• lines of responsibility – accountability for tasks/duties• span of control – no of people a manager is directly responsible for
Organisational Charts
ADVANTAGES• Clear identification of each individual• Can spot communication problems• Individuals can see their position,
authority or responsibility• Can pinpoint need for specialists• Shows relationship between
departments• Shows chain of command
Organisation Charts
DISADVANTAGES• Difficult to identify extent of
manger’s authority• Doesn’t show informal relationships
Organisation Charts
USED BY• New members of staff - induction• Existing members of staff –
identification of position within firm, line manager, etc
• Customers and suppliers - identification functional areas and contacts
• Senior managers - overview of business and identification of problem areas