Organisation is made up of a group of persons working together towards the accomplishment of certain specified objectives. It has a structure of planned relationships among the group members. These relationships can be shown in an organisation chart.
“An organisation chart portrays managerial positions and relationships in a company or a department unit.”
“The organisation chart is a graphic means of showing organisation data. Organisation charts are snap shots: they show only the formal organisation and they take it for only a given moment of time.”
“An organisation chart is a plan of working relationships. It shows who is to do the work that is to be done and who is to direct and supervise the efforts of those who are to do the work.”
“An organisation chart is a diagram of the formal authority structure.”
It is made clear that an organisation chart shows the different departments, divisions and units into which the activities of the organisation have been grouped.
It also shows the positions held by the different executives and their sub-ordinates in the departments and units, the relationship between their functions and the lines of authority and responsibility among them. It enables each executive and employee to understand what is his position in the organisation structure, what are his functions, to whom he is responsible for his work and who is responsible to him.
“An organisational chart is a diagrammatical form, which shows important aspects of an organisation including the major functions and their respective relationships, the channels of supervision, and the relative authority of each employee who is in charge of each respective function.