Organizational Charts

An organizational chart is a diagram of the organization of an enterprise. Its pyramid shape

illustrates the hierarchy system that exists in the organization. The most senior position in the
organization is placed by itself at the apex. The pyramid gets wider towards the bottom depicting
the greater number of workers at its base.

Those who have the power to issue commands have authority in an organization. In the
organization chart above the sales manager has the authority in the Sales department.  All
persons with the same level of authority are placed at the same level on the chart. For example
the sales manager and the accounts manager have the same level of authority in their various
departments.

Responsibility is the capacity to accept duties and to carry out their tasks. Both sales supervisors
are responsible to the sales manager.

The chart shows the following:

-each person’s position

-the number of levels of managers

-to whom each employee is responsible (reports) to

-the span of or (area) of control for senior staff members.

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 Types of Organizational Charts

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.

Functional Organizational Chart

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The Functional organization chart is a diagram of an organization that is arranged by its
functions. For example, there is a manager in charge of marketing, and another in charge of
production.  This type of organization has an advantage over the Line as experts are appointed to
run each department. All managers report to the General Manager.

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

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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.