Importance of Organizational Charts - Example

ORGANIZATIONAL CHARTS By XXXXXXXXXXXXX Presented to the XXXXXXXXXXXXXXXXXX In Partial Fulfilment of the Requirements for the Degree of XXXXXXXXXX With Honours INSTITUTION: Introduction 4 Executive Summary 4 IMPORTANCE OF ORGANIZATIONAL CHARTS 5 Mission of Agency 6 1.creation of clear lines of work division 7 2.establishment of authority and responsibilities 7 3.task allocation and proper management of available resources 7 Organization structure: Travel Agency 7 Five years later: Traditional Structures of Organization 10 Conclusion 13 Reference: 14 Introduction Organizational charts have the implications of diagrams that are applicable to indicate the structure through which the company together with the relationships inherent in the company as well as the relative ranks with regard to the positions is interrelated. The implication of the term chart is a map of importance to the managers in the process of navigating through the patterns in as far as their employees are concerned. The essence of the charts is the organization of the workplace at the time of out lining of the direction taken by the control of the subordinates by the management (Dan La Botz, 2001). Executive Summary There is a factor in the organizational planning of the business that would contribute ultimately to the growth and the development of the organization itself. The factor being the planning of the strategic planning, which would chalk out the working of an organization, concerned in a bid to expand and develop the task of growth further than it already has. It is in this sense that the importance of an organizational chart would come through, as these charts help in the planning process and a correct implementation of the planning process while the ultimate decision making is carried out by organization executives. The following report will analyse put forward primarily the value that the development of an organizational chart would hold for an organization and then develop and organizational chart. It shall also plan for a travel agency that is looking to expand into a second location and the factors that would be up for consideration as far as this development is concerned. IMPORTANCE OF ORGANIZATIONAL CHARTS The value addition of organizational charts as management tools are rooted on the process of the reorganization of the company, which is in the process of embarking on some merger as well as acquisitions. This finds basis also on the need for a simple approach through which an extensive number of the company’s employees are visualized. The contribution of organizational charts is valued at the time of communicating the information as pertains the employees as well as the entire enterprise (Elkori & Elkori 2004). The chart is responsible for the simplification of the process through which the people comprehend as well as digest large volumes of information in the context of a visual picture in contrast to the form of tables bearing names as well as numbers(Barling, Weber & Kwlloway, 1996). The greatest value of the organizational charts is based at the time of their application in form of frameworks responsible for the management of change together with the communication involving the current structure of the organization (Robert 2003). Figure 1: Non Profit Organizational Chart Mission of Agency The agency is named Philip tours and travel and has had modest beginnings. The basic aim when the agency was started was a small commercial venture with a hope to be an international tour and travel operator within the span of the proprietor’s leadership. The agency hopes to provide meaningful employment to enthusiastic and career oriented youngsters and make a name for itself in the travel arrangement world Specific tasks: The specific tasks that the organization has are: 1. creation of clear lines of work division 2. establishment of authority and responsibilities 3. task allocation and proper management of available resources Organization structure: Travel Agency Keeping this functional design in mind what becomes obvious is the fact that there are certain departments that need to be set up in order to maintain a certain level of executive efficiency. The new branch would therefore need to have departments like the sales departments, preferably at the front end of the office. This department would need facilities like making the sale calls, presentations and related equipment like computers and projectors, brochures and slides. File maintenance is a big part of the effectiveness of this department. There is also the IT department, depending on the size of operations, located at the rear end of the office space. There is also the administrative office that would be spread about the entire space depending on the job descriptions of each of the variable involved. Finally, the office would have a billing and operations department for the clerical aspects of the job. Proprietor ↓ Sales executive. ← Accounts Executive → Finance Executive. ↓ ↓↓ Branch Offices, Conferences, and Incentives Department. Individual Travel Charter Department. This would lead to better organization of the second outlet of travel agency, and since the two are outlets are close together. There can be joint sessions and planning as this would lead to better integration. Third Year of operation: During the 3 rd year of operation, the business has been very successful and there is a need for a second location few miles away what issue will you face running the business at two location. (Jordon 1995) This would entirely call for a different organizational structure, which includes the two business locations. This situation would call for an organizational chart of the form that appears here under: Figure 2: Organizational Chart Keeping the basic structure of an organization in mind one can now, look at the requirements that would characterize the case at hand in this context. The case is that of a travel agency in its third year with some level of professional and functional efficiency been achieved and now on the look out for an expansion in another office. Five years later: Traditional Structures of Organization An organization could be divided along the lines the traditional structures of organizational divisions- structures that are based on functional division and departments (Daugherty and Droge, 1997). After five years, the organization has spread to two years and five outlets. This posse a number of problems for the organization and there has to be set up a number of steps to ensure that the organization of these outlets is more efficient. There can be adopted the line structure where the approval of orders come from top to bottom. However, this can lead to many bureaucratic problems and lead to inefficiency. The better method that can be adopted is that of the horizontal organizational structure where there is specialization of work. This leads to economy and efficiency. (Rufe) All outlets of the organization can be linked together through the executive teams, which can meet for periodic meetings. After 25 years Twenty Five years: After twenty years, the growth that is experienced in the organization is such that there are seventy-five outlets of the organization in five states, and there is a great amount of organizational problems that crop up due to this growing diversity. . Communication throughout the entire organization has reached a level that is advanced. The proper allocation of resources to meet the needs of the organization is yet another issue of great concern. The organization has to adopt a structure that can deal with the growing problems of communication and organization. Such a structure is that of functional structure, which classifies people according to the function they perform in their professional life or according to the functions performed by them in the organization. The organization chart for a functional based organization consists of Vice President, Sales department, Customer Service Department, Engineering or production department, accounting department and Administrative department. There would also be the need for clear hierarchical rungs and scope of development for further personal and professional spaces for every employee given the fact that employee satisfaction is one of the most basic ways in which one can address the issue of efficiency within the organza ion. It allows for the development of an organizational system which is more efficient. It also allows for Conclusion In conclusion therefore it may be reiterated that while there might be no dearth of organizational structure options that could be adopted by the organization at present the best way to go is the adoption of the traditional modes especially the line and staff structures of organization capacity. Reference: David, P. 2004, The Union Steward’s Complete Guide, 1st ed. Washington, D.C.: Union Communications Services, Inc. Elkori & Elkori, 2004,How Arbitration Works. 5th ed. Washington, D.C. Bureau of National Affairs, Dan La Botz, 2001, A Trouble maker’s Handbook: Fighting Back Where You Work NY: Labor Heritage Foundation. Robert, M. 2003, The Legal Rights of Union Stewards, NJ Work Rights Press. Barling, J, Weber, T, & Kwlloway, E, K, 1996, Effects of transformational leadership training and financial outcomes, Journal of Applied Psychology, 81, 827-32. Bass,B, 1990, Handbook of Leadership, 3rd Ed. NY, Free Press. Saloner, G., Shepard, A. & Podolny, J. 2008, Strategic Management New Delhi: India Wiley Publishers. Daugherty P J and Droge C, Organizational structure in divisionalized manufacturers: the potential for outsourcing logistical services, pub, International Journal of Physical Distribution & Logistics Management, vol. 57 No5/6, pp337-349 Rufe P J, Fundamentals of Manufacturing Supplement, pub, SME Books, pp141-142 Jordan E, 1995, Information strategy: alignment with organization structure, pub, The Journal of Startegic Information Sciences, Vol.4 No.4, pp357-382 Read More