You are currently viewing Organizational chart and its 6 major importance you need to know – Best Class 11 HM notes

Organizational chart and its 6 major importance you need to know – Best Class 11 HM notes

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Definition – An organizational chart can be defined as the graphical representation of an organization showing the level of management relationship in an organization and the division of work within the enterprise.

The organizational chart is one of the very important documents in any type of organization because it helps to represent the division of power, work, and status between different employees and other stakeholders. We will be discussing some of the importance of organizational charts in this blog.

Importance of Organizational Chart

1. Unity of Command

Every employee has a responsibility of reporting incidents and performance to his/her boss only. As the organizational chart shows the division of power, it helps subordinates to whom the report should be submitted. Hence, the organizational chart helps to maintain the unity of command within the organization.

2. Span of Control

It is helpful for the supervisors to how many subordinates are working under his/her control. The supervisor will know the type and position of the subordinates working under him/her and will help to make further planning.

3. Division of labour

One of the major advantages of an organizational chart is to assist in the division of work or labour between the workers of the organization so that every worker knows his/her duties and responsibilities. Hence, it will be making operations smoother in the organization.

4. Principle of Authority Delegation

It helps to decentralize the authorities and responsibilities to the worker. When authorities and responsibilities are decentralized, it helps to motivate the staff regarding their jobs.

5. Scalar Chain

It also helps in the scalar chain which shows the authority flow from top to bottom.

6. Teamwork

It helps all the workers to work as a team so that the objectives of the organization will be met easily and smoothly.


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