Types of Organizational Charts

INFORMAL ORGANIZATION is the grouping by reason of social customers, personality and

religion. While FORMAL ORGANIZATION is concerned with the official lines of
communication followed by employees in carrying out management decision. It shows clearly
the lines of authority and responsibility.

Three types of formal organization are:

 Line
 Line and staff
 Functional

SPAN OF CONTROL- the number of subordinates a manager has control over

CHAIN OF COMMAND- the method in which information is communicated from the highest to
the lowest level

LEVELS OF MANAGEMENT- Top, middle, and lower level

Line or Direct

The line organizational chart depicts a straight line of command. Authority is said to flow
downwards only in the line organization. The line organizational structure is found in schools or
in the military.
The Functional organizational chart combines the straight line of command of the line
organization with horizontal dotted diagonal lines representing functional authority. The dotted
diagonal lines in the figure above show the authority that the Human Resource Manager has over
other departments. The Human Resource Manager is allowed authority in these department over
human resource matters only e.g. to hire and fire workers. He therefore cannot give directives on
production or marketing matters.

Line and Staff Organizational Chart

The Line and Staff organizational chart combines the line and functional organization with the
addition of staff personnel. Staff workers assist and advise line workers. Staff workers include
consultants, advisors, company lawyers, executive secretary, auxiliary workers etc.  Staff officers
do not have authority, that is, the power to delegate tasks to subordinates in the organization.
Their main role is to advise and assist line officers. This is why there are no vertical lines
connecting staff officers to any other member of staff on the chart. They are therefore, placed at
the side directly below the line officer whom they assist or advise.