organizational chart that defines who who reports to whom for what is part of the principal of
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Answer:
The Organization Chart
Once an organization has set its structure, it can represent that structure in an organization chart: a diagram delineating the interrelationships of positions within the organization. Having decided on a functional structure, a company might create the organization chart shown in Figure 1.
Organization. At the top is the Owner or President, who directly supervises the Accounting Manager, the Marketing Manager, the Operations Manager, and the HR Manager. The Marketing Manager supervises advertising and the sales supervisor, who supervises the sales staff. The Operations Manager supervises the Note-Takers supervisor, who is over the Note-takers. The Operations Manager is also over the Copiers Supervisor who supervises the copiers.
Figure 1. Organization Chart
Using the figure above for reference you can complete a hypothetical organization chart. Begin by putting yourself at the top of the chart, as the company’s president. Then fill in the level directly below your name with the names and positions of the people who work directly for you—your accounting, marketing, operations, and human resources managers. The next level identifies the people who work for these managers. In this example, because you’ve started out small, neither your accounting manager nor your human resources manager currently manage anyone directly. Your marketing manager, however, oversees one person in advertising and a sales supervisor (who, in turn, oversees the sales staff). Your operations manager oversees two individuals—one to supervise notetakers and one to supervise people responsible for making copies.
Reporting Relationships
With these relationships in mind, you can now draw lines to denote reporting relationships, or patterns of formal communication. Because four managers report to you, you’ll be connected to four positions; that is, you’ll have four direct “reports.” Your marketing and operations managers will each be connected to two positions and their supervisors to one position each. The organization chart shows that if a member of the sales staff has a problem, he or she will report it to the sales supervisor. If the sales supervisor believes that the problem should be addressed at a higher level, then he or she will report it to the marketing manager.
Theoretically, you will communicate only with your four direct reports, but this isn’t the way things normally work. Behind every formal communication network there lies a network of informal communications—unofficial relationships among members of an organization. You might find that over time, you receive communications directly from members of the sales staff; in fact, you might encourage this line of communication.
Now let’s look at the chart of an organization that relies on a divisional structure based on goods or services produced—say, a theme park. The top layers of this company’s organization chart might look like the one in Figure 2a. We see that the president has two direct reports—a vice president in charge of rides and a vice president in charge of concessions. What about a bank that’s structured according to its customer base? The bank’s organization chart would begin like the one in Figure 2b. Once again, the company’s top manager has two direct reports, in this case a VP of retail-customer accounts and a VP of commercial-customer accounts.