Structure of Business: Organisation Chart – SS3 Commerce Lesson Note (First Term)

CONTENT

1. Structure of Business
2. Organization Chart
3. Types of Organisational Structure.

Organisational structure is the framework by which tasks are divided, grouped and coordinated.  It entails the division of the activities of a business organisation into departments, divisions, units and subunits and the allocation of positions, responsibilities and authorities to the officials of a business.

 Uses (purposes) of an organisation chart

1. It shows the line of authority and responsibilities in an organisation.
2. It shows the relationship between the various departments and functionaries in an organisation.
3. It is used to show the channel of communication/information within the organisation.
4. It shows the various positions in an organisation.
5. It also shows the status and role of each member of the organisation.
6. It shows the span of control of each supervisor or manager.
7. The whole organisation structure of the form can be seen at a glance.
8. It is easier to analyse and review the structure of the organisation when it is represented graphically.

Organization chart of xyz ltd. 

  THEORY

1. What is an Organization Chart?
2. State two functions of the Administration Department of a business organisation.