Understanding Organizational Structure and Charts

• Organizational Structure: Refers to the levels of management and division of responsibilities within an organization. The structure is often presented in the form of an organizational chart.

Organizational structure is typically implemented when a business expands, and the workload becomes too much for a single manager to handle. In such cases, employees often specialize in different roles.

Organization Charts

Important Features of Organization Charts

• They illustrate a hierarchy, with different levels within the organization. Each level carries a different degree of authority, and individuals on the same level possess equal authority.
• They depict how an organization is divided into departments, each with a specific job or function.
• They show the chain of command, which is the path through which power and authority are passed down from the top to the lower levels of the organization.

Advantages of Organization Charts

• They clearly show how everyone is linked within the organization. All employees are aware of the communication channels used to reach them with messages and instructions.
• Each individual can see their position in the organization, identifying who they have authority over and to whom they are accountable.
• They illustrate the links and relationships between different departments within the organization.
• Everyone is in a department, giving them a sense of belonging.

Chain of Command and Span of Control

• Chain of Command: The structure within an organization that allows instructions to be passed down from senior management to lower levels of management.
• Span of Control: The number of subordinates working directly under a manager.

A longer chain of command results in a taller organizational structure and a narrower span of control.

Advantages of Short Chains of Command

• Communication is quicker and more accurate.
• Top managers are less remote from lower levels.
• Spans of control are wider. Managers with more subordinates tend to delegate more, leading to less direct control of each worker. This can make employees feel more involved and potentially increase job satisfaction.

Disadvantages of Wide Spans of Control

• Managers could lose control of what their subordinates are doing.
• If subordinates are poorly trained, they could make mistakes.

Line Managers and Staff Managers

• Line Managers: Individuals with direct responsibility over people below them in the organizational hierarchy.
• Staff Managers: Specialists who provide support, information, and assistance to line managers.