DIFFERENCE BETWEEN ORGANIZATION STRUCTURE AND ORGANIZATION CHART

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.

Source:
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