Principles of Organization Chart

Preparing an organization chart is based on the following principles:

1. Clear definition of jobs:

The charts are prepared keeping in view overall jobs of the organization. Every job has a suitable position on the organization chart.

2. Authority-responsibility:

The responsibility for each job along with commensurate authority at different levels must be clearly shown on the organization charts.

3. End result areas:

These charts represent the activities (jobs) performed at different managerial positions and the end-results (or- the objectives) expected of each position.

4. Flexibility:

In the changing environment, these charts must be flexible to report the changing relationships.

5. Exhibition of informal relationships:

Though all informal relationships cannot be exhibited on theses charts, as it would make these charts complex to be understood, managers must recognize the need for reporting as many informal relations helps on them as possible.

6. Control:

By dividing the overall task into smaller units, these charts provide yardstick of performance against which actual performance can be measured and suitable measures of control can be adopted.

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