"The organization chart is important for several reasons. It shows each individuals position within the organization. It shows the line responsibilities within the organization and who reports to whom. It shows how the organization is structured and how the various administrative functions within the organization are grouped."
An organizational chart, also called organigram, organogram, or organizational breakdown structure (OBS), is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. The term is also used for similar diagrams, for example ones showing the different elements of a field of knowledge or a group of languages.
"An Organization Chart is a cross section picture covering every relationship in the bank. It is a schematic survey showing department functions and interrelations, lines of authority, responsibility, communication and counsel. Its purpose is “to bring the various human parts of the organization into effective correlation and co-operation."
"An organization chart is not to take the place of the printed rules and regulations. Its chief use lies in that it is likely to lead to more careful planning of the organization and the placing of responsibility as well as making the task of defining duties easier. Each superintendent of schools would find that an organization chart would be of great assistance to him in perfecting his organization."
"The purposes of functional charts is"
"To the student of business structure the organization chart is what the anatomical chart is to the student of the human body. It is a device by means of which relations of the different parts of the organization can be brought out more clearly than by a verbal description. The student of business derives from them the same sort of aid that the student of medicine does from the anatomical chart, which enables him to visualize the organs of the human body. While the analogy is helpful, it is like every other analogy, in being only partial."
"The Hawthorne researchers became more and more interested in the informal employee groups which tend to form within the formal organisation of the Company, and which are not likely to be represented in the organisation chart."
"The frame work of the entire organization should be sketched, and the particular place in the scheme of things which his department and his position occupy should be explained. Almost any one can be shown a particular location on a map. An organization chart is a map."