One of the most important tools to define the organic structure of an enterprise is the "Organization Chart", but unfortunately, the concern for a technique to build one may cause the loss of the basic ends of its design.
1) They establish the comprehension of communication problems;
2) They lead the new workers towards the structural relations and complexities;
3) They supply a graphical image of the organization to third parties;
Organization charts, in their simplest of forms, only show the functional units and reletionships.In a more complex state, the post or office manager can be added, the main responsibilities, the committees, and even communication relationships. However, they are so vast and complex that such organization charts can only be seen in key points or segments of the organization.
What is an Organization Chart?
An organization chart is the graphical presentation of the organic structure of an enterprise or one of its areas or administrative units, in which the relationships between the organs that form it are shown.
What is the objective of an Organization Charts?
They are the ideal instrument to state and transmit in a graphic and objective manner the composition of an organization.
What is the usefulness of an Organization Charts?
o They provide a formal image of the organization.
o They are a source of official consult.
o They ease the knowledge of an enterprise, as well as its hierarchy relations.
o They constitute a valuable technical element to analyze the organization.
Which are the criteria to form an Organization Chart?
1) Precision: the administrative units and their relations and inter-relations must be established accurately.
2) Simplicity: they must be as simple as possible to represent the structure(s) in a clear and comprehensible manner.
3) Uniformity: in its design, it is convenient to make nomenclature, lines figures and composition homogenous to facilitate its interpretation.
4)Presentation : its access depends in great measure of its format and structure, so they must be prepared complementing technical criteria as well as service criteria, in function of its objective.
5) Period: To maintain its validity, they must be updated. It is advisable to write the name of the responsible unit for its preparation on the lower right side, as well as the date of approval.
Basic presentation of an organization chart - flowchart.
It can be noticed from this organization chart that the superior hierarchy level is formed by the General Management, and it has four subordinates: Production, Marketing, Finances and Personnel.