ADVANTAGES AND DISADVANTAGES OF AN ORGANIZATION CHART

Advantages of Organisation Chart: Following are the advantages of an organisation chart

1. It is a tool of administration which indicates graphically to the employees how their positions fit into the total organisation and how they relate to each other.

2. It shows at a glance the lines of authority and responsibility. It is a reliable, blueprint of how the positions are arranged. From it, the individuals can have a sense of the limit of their authority and can see who their associates are, to whom they have to report, and from whom they are to receive instructions.

3. It serves as a valuable guide to the new personnel in understanding the organizational structure and the interrelationship between its units and subunits.

4. It provides a framework of personnel classification and evaluation systems.

5. It plays a significant part in organisational improvement by reflecting inconsistencies and deficiencies

Limitations of Organisation Chart

1. Organisation chart shows only the formal relationships and fails to show Organising the informal relations within the organisations. In modern enterprises, informal relationships significantly effect the functioning of organisations.

2. It shows the lines of authority, but it is notable to answer questions like the degree of authority that can be exercised by a particular executive, how far he is responsible for his functions, and to what extent he is accountable.

3. It introduces rigidity in the relationships. Updating is not possible without disturbing the entire set up.

4. Faulty organisation chart may cause confusion and misunderstanding among the organisational members. Moreover, it gives rise to a feeling of superiority and inferiority which causes conflicts in the organisation.

5. It does not show the relationships which actually exist in the organisation, but shows only the ‘supposed relationships’.