Students
tend to be confused with the term organization structure and organization
chart. Some think they have the same meaning and function. According to
Goodman/Fandt/Michlitsch/Lewis, an organization
structure refers to the primary reporting relationships that exist within
an organization. This is where authority, responsibility and accountability are
established. By doing so, everyone knows who will report to whom, whose
instruction they can take, who they can delegate to and so on. Organizations
need structuring so that lines of authority along with individual duties and
responsibilities can be understood by every company member. No matter how large
or small the operation, whether it is a major department store or a small
store, each company must be structured in such a way that best serves its needs
and makes the business a success.
An organization chart is a graphic
representation of the organization structure.
The organization chart’s purpose is to clarify the organization’s
structure so that all employees can understand it. Such charts allow employees at any level of
the organization to immediately see and learn their place in the company, to
whom they are responsible, and, in turn, their own responsibility and
accountability.
1. Goodman, Fandt, Michlitsch and Lewis (2007). "Management Challenges for Tomorrow's Leaders.
2. http://www.prenhall.com/divisions/ect/app/Diamond_temp/source_files/dia76827_ch03.pdf
