5 important Limitations of an Organisation

1. Charts have a tendency to become outdated after the lapse of a time. For information and guidance purposes, outdated charts are as useless as old newspapers. Hence, the difficulty of constant revision goes against the use of charts.

2. Organisation charts can only depict formal authority relationships between mangers, but these are many significant informal and informational relationships in a structure which defy presentation on the chart.

3. Charts do not indicate the quantum of authority existing in different managerial positions. Blocks of varying sizes put on the chart have nothing to do with their relative job importance.


4. Organization charts may lead to the confusion of authority relationships with the status of line and staff officers. A personal staff attached to the top executives are usually shown at the top of the structure, the rank or status of staff men may be deemed more important that the line executives operating at the lower levels of the structure.

5. Some authorities object to charts on the grounds (a) that they create superiority- inferiority feelings among personnel, (b) that they make subsequent changes a more difficult, (c) that they freeze relationships between managers, and (d) that charts show the lines of authority as they should rather than as they are.