5 main Benefits of an Organisation


5 main Benefits o f an Organisation are as follows:

1. Since a chart clarifies the assignment of duties and the lines of authority, the more charting brings to light all Inconsistencies and weaknesses of organisation and leads to their elimination.

2. The organisation chart stresses the unity of command and avoids overlapping of authority and responsibility, thus making it possible to enforce accountability upon each individual.


3. The chart provides the incumbents of all positions with a clear understanding of how they and their work contribute to the organisation as a whole. This understanding helps everyone’ to adjust himself with organisational changes and to know the normal lines of promotion.

4. As the organisation chart specifies the nature of authority vested in each position, it makes the new incumbents of different positions aware of the available authority and its limits. Accordingly, managerial training is greatly ‘facilitated by organisation charts which reveal how a company is organised.

5. In organisation planning and analysis, charts helps to develop alternative ways of organizing and to study their comparative merits and demerits. After selecting the best structure and keeping it as an ideal to be coveted for in the future, position are matched with available personnel for the time being.

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