Organisational charts
N
Organizational structure refers to the way in which
a group is formed, its lines of communication, and
its means for channeling authority and making
decisions.
It clarifies the formal relationships of individuals
in the various positions within the organization
What is organisational chart?
Organisational chart is a drawing
that shows how the parts of an
organisation are linked.
It is a diagram which shows the
different positions and
departments and relationships
among them.
IMPORTANCE OF
ORGANIZATIONAL STRUCTURE
It enables members to know what their
responsibilities
It frees the manager and the individual workers to
concentrate on their respective roles and
responsibilities
It coordinates all organization activities so there is
minimal duplication of effort or conflict.
Avoids overlapping of function because it pinpoints
responsibilities.
Shows to whom and for whom they are
responsible
Divides work to be done in specific jobs & dept.
Assigns tasks and responsibilities associated with
individual jobs.
Coordinates diverse organizational tasks.
Establishes relationship b/w individuals, groups
and departments.
Establishes formal lines of authority.
Allocates organizational resources.
Clusters jobs into units.
ORGANIZATIONAL RELATIONSHIP
1. FORMAL RELATIONS
2. INFORMAL RELATIONS
ORGANIZATIONAL RELATIONSHIP
1. FORMAL RELATIONS
Formal structure, through departmentalization and work
division, provides a framework for defining managerial
authority, responsibility andaccountability
Formal Structure
Should Well
not be defined
jobs
flexible
Formal
Channeled Definite
Organizatio
individual and authority /
n responsibility
group efforts
ORGANIZATIONAL RELATIONSHIP
2. INFORMAL RELATIONS
Informal structure is generally social, with blurred or
shifting lines of authority and accountability.
It also has its own channels of communication, which
may distribute information more broadly and rapidly
than the formal communication system.
Informal Structure
A network of personal / social
relationships, not established, required
by FORMAL organization but arising
spontaneously
Loosely Structure (membership),
organize communication networks
d Informal (“grapevine”), and
relationships behaviors and
organizatio norms) do not necessarily
flexible n follow those of
the formal organization.
ill defined
SSppoonnttaa
ORGANIZATIONAL CHART
Organizational chart is a line drawing that shows
how the parts of an organization are linked.
The organization chart establishes the following:
Formal lines of authority—the official power to act
Responsibility—the duty or assignment
Accountability—the moral responsibility
ORGANIZATIONAL CONCEPTS:
1. AUTHORITY is defined as the official power to act. It is
power given by the organization to direct the work of others.
Example: A manager may have the authority to hire, fire, or
discipline others.
2. A RESPONSIBILITY is a duty or an assignment. It is
the implementation of a job.
For example, a responsibility common to many charge nurses is
establishing the unit’s daily patient care assignment
3. DELEGATION is the process of assigning duties
or responsibilities along with corresponding authority
to another person. Authority must be delegated with
the responsibility.
4. ACCOUNTABILITY means that individuals
agree to be morally responsible for the consequences of
their actions.
Example: A nurse who reports a medication error is being
accountable for the responsibilities inherent in the position.
CHARACTERISTICS OF AN
ORGANIZATIONAL CHART
Division of Labor/Work
Chain of Command
Span of control
Unity of command
Authority
DIVISION OF LABOR/WORK
Subdivision of work into separate jobs assigned to different
people
Potentially increases work efficiency
Necessary as company grows and work becomes more
complex
CHAIN OF COMMAND
It is a formal line of authority and communication within the
organization and the structure. demonstrates who formally
reports to whom within the organization. The vertical lines in
the chart represent chain of command.
UNITY OF COMMAND
The concept of unity of command is that each person on the
organization chart has one manager or one boss.
SPAN OF CONTROL
Span of control means the number of individuals a person
is responsible for managing. A wide span of control
indicates that many people are reporting to a manager, and
a narrow span of control indicates that only a few people
are reporting to the manager.
AUTHORITY
The rights inherent in a managerial position to tell people
what to do and expect them to do it.
Purpose of organisational chart
1. Shows formal organisational
relationship.
2. Shows areas of responsibility.
3. Shows persons to whom one is
responsible.
4. Shows the channels of
communication inn an
organisation.
Characteristics of effective
organisational chart
Accurate, clear, simple and updated.
Shows the chain of command, lines of
authority, responsibility and
relationships.
All members of the department should
be notified when any changes occurs.
Principles of organisational chart
Clear title.
Dated correctly
Proper hierarchy to be shown. That is higher
authority in top and most juniors in bottom.
Person swith same status /rank to be at same
level.
Line of authority to be shown in solid lines;
staff relationship can be shown in dotted lines.
Colors can be used to distinguish between
departments.
TYPES OF ORGANIZATIONAL
CHARTS
1. Vertical charts
It shows high-level management at the top with formal
lines of authority down the hierarchy, are most common.
2. A left-to-right (horizontal) charts:
It shows the high-level management at the left with
lower positions to the right. Shows relative length of
formal lines of authority, helps simplify understanding
the lines of authority and responsibility.
3. Circular charts
It shows the high-level management in the center with
successive positions in circles. It shows the outward flow
of formal authority from the high-level management. It
reduces status implications.
VERTICAL CHART
CIRCULAR CHART
A LEFT-TO-RIGHT (HORIZONTAL)
CHART
ADVANTAGES OF AN ORGANIZATIONAL CHART:
1. It provides a quick visual illustration of the organizational structure.
2. It provides help in organizational planning.
3. It shows lines of formal authority, responsibility and accountability.
4. It clarifies who supervises whom and to whom one is responsible.
5. It emphasizes the important aspect of each position.
6. It facilitates management development and training.
7. It is used to evaluate strengths and weakness of current structure.
8. It provides starting points for planning organizational changes.
9. It describes channels of communication.
DISADVANTAGES:
10.Charts become outdated quickly.
11.Does not show informal relationship.
12.Does not show duties and responsibilities.
13.Poorly prepared charts might create misleading effects.
STANDARDS FOR EVALUATING THE EFFECTIVENESS OF
HIERARCHICAL ORGANIZATION STANDARDS
1. Line authority relationships are clearly delineated
and defined by the organizational and/or functional
charts and policies;
2. Staff authority relationships are clearly delineated
and defined by the organizational and /or functional
charts and policies;
3. Functional authority relations are clearly delineated
and defined by the organizational and /or functional
charts and policies;
4. Staff personnel consult with, advise and provide
counsel to line personnel;
5. Service personnel functions are clearly understood
by line and staff personnel;
Organisationan charts help in
nursing ???
Plan, provide & evaluate nursing care
Define & implement philosophy, objectives and
standards for nursing care.
Proper delegation
Proper coordination for smooth functioning if
hospital
Estimate correctly requirements of each
department
Formulation of personnel policies
Development of effective system of record and
report.
Help in financial and logistic planning.
Help in research, provide & implement continuing
education & conduct educational programms.
