ORGANIZATIONAL PYRAMID:

Top

Management CEO

Senior
Executive

Middle Department
Heads
Management
Superintendents

Supervisory General Foreman

Management First-Line Supervisors

Rank and Workers and Employees

File

 Principal Attributes of Good Organization

o Good organization should posses a number of essential attributes which to the mind of
Ralph C. Davis are:
 Effective executive leadership
 Sound business objectives and policies based on competent analyses of
customer needs and desires that have been made with due regard for the
general public and other collateral interests.
 Sound functional relationships as determined by objectives.
 Adequate physical implementation that will make possible the economical,
effective implementation of objectives.
 A complement of abilities, both executive and operative, to handle present
business problems, economically and effectively.
 Organizational stability which means “the quality of an organization that enables
it to adjust promptly to personnel losses without serious losses of economy or
effectiveness”.
 Organizational flexibility, that is, the organization is able to meet the demands of
changing conditions.
 Organizational capacity for growth which is enhanced by the acquisition of
reinvestments of profits into the business enterprise.
  Organizational balance. Each portion and function of an enterprise should
operate with equal effectiveness in making its allotted contribution to the total
purpose”, as expressed by Urwick.
 Good organizational morale. Low morale affects the entire organization which is
manifested in a number of ways: high incidence of absenteeism, labor turn-over,
etc.

Organizational Chart – Charts and job descriptions have their purpose in every organization.
They serve to characterize the organization at a given time and must be regularly up=dated. If
organizational charts are to serve the purpose of top management satisfactorily, three types are
important such as :

The existing Organization. As the very title suggests, it shows the organization and its
composition in the form of a chart reflecting the strengths and weaknesses and accompanying
checks and balances.

The Ideal Organization. The basic organizational objectives of the business enterprise
toward which efforts should be directed when changes are made in current incumbents and
responsibilities are shown in the chart.

The Potential Organization. This depicts at a mere glance the current evaluation of each
incumbent. Thus, these questions are asked: Is he the right man for the job? Does he show
potentials for development? Is he promotable?

This chart, potentially speaking, should motivate the chief executive officer to institute
changes, before they occur as a result of “natural resources”.

In a very brief sense, the making of charts help clarify the assignments of duties and the
lines of authority. Charts help show men throughout the organization how they and their work
contribute to the whole just as they help everyone keep up with organizational changes.

Charts, in the main, tell the names of existing departments, who heads each
department, and who reports to whom. In a very broad sense, charts are not much unlike
photographs – they show what is needed to be known at a given moment. Thus, a change in an
organization calls for the making of a new chart with the old one discarded and thrown away
because it is no loner reflective of the organization structure.