Advantages and disadvantages of Organisation Chart

An employee who is very fresh to an organization or an experience employee comes to join an organization does not know whom he has to report, who are the colleagues and so on. How one can know these? In one way he can ask to co workers and find out. But there is an easy way to be prepared before he starts working. This is done with the help of organization charts prepared by the organization authority. An organization chart is the diagrammatic representation of an organization in a whole level. This involves the authority and hierarchical orders of managers, their functions and relationship with other functional heads.

There are three kinds of organization charts are vertical organization chart, horizontal organization chart, and circular organization chart.  Vertical organization chart is the chart in which functions and functional heads are represented in a vertically, it is known as vertical organization chart. Horizontal chart is the chart in which functions and functional heads are represented in a horizontal way, it is known as horizontal organization chart. Circular organization chart is the chart in which functions and functional heads are represented in a circular way. The center will be always placed by higher officials.

Advantages of the organization charts are:

  It gives a brief description of the organization. For a new employee, he can get a glimpse about the organization by looking into the organization chart. It is a brief description for an existing employee also. He may have confusions something when he is in firm where lot activities occur. He can identify the people working there and have at least who are all the people in the concern even though he has not personally met them. Also it   Avoids conflicts. One of the important reasons among the individual is when there are confusion about whom I should report to. This question can be easily answered by the people just looking into the chart. People make clashes in the organization when there are too many responsibilities without accountability. The accountability can be done with the help of organization chart.

  It is a tool to plan and improve. The chart is a blue plan of an organization. It can be researched and given an opportunity to understand its weaker parts and improve it. Also when there is a planning has to be done, it is easy to locate things. Organization chart gives the personal details and job description. This is a guide for planning. It also avoids ambiguity. An employee should know what are responsibilities and duties and also should know to whom he has to report. If this is clear then there will not be any ambiguity of the role which one has to perform. To understand one’s role is very easy by the authority with the help of organization chart.

                Disadvantage of organization chart is; Organization chart shows only the relationship among the department not the degree of relationship. Also organization chart ignores the fact that there are informal groups which does not have structure and it has huge impact over the organization.