Organisation Charts An organisational chart is a diagram that shows the formal structure of an organisation. An organisational chart shows: The relationship between staff Who has authority Who is in charge of the organisation and each department The chain of command and line of communication

Oban High School Organisation Chart Mr Bain Mrs Pupillo Mr Cameron Mr Milligan Teachers Mrs Leitch Mrs Lawson

CHAIRMAN MANAGING DIRECTOR FINANCEADMINOPERATIONS INCLUDING MARKETING CAR RENTAL CORPORATE and PRIVATE SALES MAJOR ACCOUNTS Eg LOCAL AUTHORITY SALES ARNOLD CLARK ORGANISATION CHART  Arnold Clark has functional departments for Finance, Administration and Operations.  It has different departments for different types of products it offers eg Car Rental and Sales.  It also has two departments that are divided according to customer grouping. One department targets corporate and private customers and another for major accounts suck as local authorities. Chart adapted from For discussion

Forms of organisation structure The management structure in an organisation is another essential factor in its success. Why… The structure: –defines how the organisation operates –defines the role(s) of individuals within the organisations and what authority they have –defines the relationship between groups and between individuals –channels the activities within the organisation towards the goals of the organisation –helps to make best use of scarce resources

Organisation Charts An organisation chart shows the formal structure of an organisation and clearly shows: lines of communication – 2-way from top to bottom lines of authority – between superiors and subordinates lines of responsibility – accountability for tasks/duties span of control – no of people a manager is directly responsible for

Organisational Charts ADVANTAGES Clear identification of each individual Can spot communication problems Individuals can see their position, authority or responsibility Can pinpoint need for specialists Shows relationship between departments Shows chain of command

Organisation Charts DISADVANTAGES Difficult to identify extent of manger’s authority Doesn’t show informal relationships

Organisation Charts USED BY New members of staff - induction Existing members of staff – identification of position within firm, line manager, etc Customers and suppliers - identification functional areas and contacts Senior managers - overview of business and identification of problem areas