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Key features of an organisational chart - Coggle Diagram
Key features of an organisational chart
Departments
A business is organised into departments.
Each department is responsible for a particular function or role.
Examples
Finance
Operations
Human resources
Marketing
Hierarchy
Different positions have different levels of authority.
Examples
Marketing director, finance director, operations director and HR director are all on the same level, therefore have the same authority.
Finance director is above the financial accountants and management accountants.
The accountants have less authority than the financial director and the same amount of authority as each other.
Chain of command
Shows how communication and tasks are passed down the business from the top to the bottom.
Example
Managment accountant passes task down the chain of command to the sales ledger manager who in turn might pass them on to the accounts clerks.
Delegation
Someone higher up the chain of command can give responsability to or delegate the authority to someone to perform a task.
Example
Marketing director might be asked to compile a sales report for top-performing products.
He or she might decide to delegate the task to the sales manager, although he or she is still responsible for the completion of the task.
Span of control
Shows how many individuals or subordinates are under the control of one manager.
Example
Sales ledger manager has a span of control two: the accounts clerks.