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Difference Between Organizational Structure And Organisational Chart

Satisfactory Essays

As a starting point, it is important to understand the difference between “organisational chart” and “organisational structure”.

Goodman, Fandt, Michlitsch and Lewis (2006:195) describe the organisational structure as the plan that describes the relationships between the jobs and departments, whereas the “chart” refers to the graphical representation of the organisational structure. This is reiterated by Brevis and Vrba (2014:342-345) where they explain that the organisational chart is a graphical representation of the organisational structure.

Some important factors of the principles of organising, according to Brevis and Vrba, include unity of command and chain of command which speak to reporting lines. They specifically highlight the importance of each person only having one supervisor they report to. Although work can be handed down from various sources, the line management authority should lie with one person only. …show more content…

This recommendation is complimented through insights from Khan (2016:137), who states that organisational structures mimic their environment and that structures that adapt more easily to changes in the business environment are those with the less centralised approach where employees enjoy some autonomy in their roles. These structures allow for quicker decision making, and even process flow, as a result.

Understandably there are additional factors to consider in deciding on the ideal organisational structure like the organisation’s size. In the case of London Hotel, the organisation is still small and, as such, the organisational structure is fairly flat. Figure 2, below, shows the recommended organisational chart for London Hotel, with relevance to the HR department.
London Hotel – Organisational chart of HR Department Figure

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