Preparation - Some Conventions

Normally, the following conventions are used in preparing organisation charts : 

1. The individual positions on the chart are usually represented by a rectangle, although a circle or triangle is sometimes used. 
2. The vertical arrangement of the rectangles usually shows relative positions hierarchy. The most powerful position is normally at the top of the organisation chart. 
3. Direct organisational relationships are shown by solid lines between position; they medicate who reports to whom.
4. Functional or advisory authority is usually shown by dotted or broken lines. 
5. Lines of authority usually enter at the top centre of the rectangle and leave at the bottom centre; they do not run through the box. 

Organisation Manual 

The organisation manual goes one step ahead as a model of the organisation. Through its job descriptions, it shows duties performed (scope and limits of the various jobs);  the extent of authority held by individual managers; and the relationships of positions with each other. 

Benefits 

• Both organisation chart and manual offset the following benefits : 
• Serve as a vehicle of effective communication. 
• Organisation chart, as a graphic model, is useful for showing formal work relationships among managers and others. 
• Help to orient new members who join the organisation. 
• In the event of organisational restructuring, they call identify what changes have taken place and where. 

Deficiencies 

However, a typical organisation chart or manual fails to reveal the following important things : 

• It does not show the degree of responsibility and authority exercised by positions on the same management level. 
• It does not clearly distinguish between line and suffuse positions. 
• Size and position of boxes do not necessarily reflect importance or status. 
• It does not show all the channels of contact or communication. 
• It does not show the informal organisation that is a logical and necessary extension of the formal structure.