Organisation charts is a diagrammatical presentation of relationships in an enterprise. The functions and their relationships, the channels of authority and relative authority of different managers etc. are depicted in an organisational chart.
Types of Organisation charts
There are three ways in which organisation charts can be shown: (i) Vertical (ii) Horizontal (iii) Circular.
Vertical or Top bottom: In this chart major functions are shown at the top and subordinate functions in successive lower positions. In this chart scalar levels run horizontally and functions run vertically. The supreme authority is shown at the top while lowest authority at the bottom.
Horizontal or Left to Right: In this chart highest positions are put on the left side and those with diminishing authority move towards the right. The organisational levels are represented by vertical columns, the flow of authority from higher to lower levels being represented by movement from left to right.
Circular: In circular chart the centre of the circle represents the position of supreme authority and the functions radiate in all directions from the centre. The higher the positions of authority the nearer they are to the centre and the lesser the positions of authority. more distant they are from the centre. The positions of relative equal importance are located at the same distance from the centre.