The main purpose of an organization chart is to show the hierarchical structure, or chain of command, within an organization. It is a useful management tool that helps organize the workplace. In general, the charts place the top official or department at the head of the chart, with others following below in levels.Know More
An organization chart, or org chart, visually divides any organization into different levels of authority. Each box in the chart depicts a department or position, with those on the same level being of equal rank. The chart illustrates relationships between departments and people within an organization. It makes it easy for people to comprehend the structure of an organization, especially a large one, and is common in any organization with over five members.
Most org charts are pyramid-shaped. For example, a large organization may have four directors reporting directly to one department head. In this case, the first level of the chart would depict the department head and the next level the four directors. Below the directors would be their subordinates.
Besides providing an easy-to-understand overview of an organization, org charts are useful when companies undergo major change or restructuring, as in the case of a merger. They are also useful when shifting resources or adjusting the structure of large teams.Learn more about Managing a Business
The term "Industrial relations" refers to all the relationships between the different stakeholders in an organization, such as employees, management and trade unions. The purpose of this is to make sure that all needs are met and everyone involved can move forward amicably.Full Answer >
A comprehensive staffing plan is essential for the successful running of a business, as finding the right staff levels in an organization is accompanied by the risks of over staffing and under staffing. In cases where an organization is under staffed, the employees feel stressed and overworked and productivity suffers, and the best producers may leave. When an organization is over staffed, many workers are idle and there is wastage.Full Answer >
A cash ratio of 1.0 for an organization means that the organization has enough cash on hand to cover its short-term obligations, while anything below 1.0 implies it has insufficient funds to cover its liabilities, according to Computerized Investing. Cash ratios do not take other assets into account, such as short-term investments or receivables, so a company's cash ratio should not be the only determining factor for measuring an organization's financial success.Full Answer >
According to the Houston Chronicle, the biggest internal factors that affect a business are organizational structure and communication within the organization. These factors lead to motivated employees who feel they have defined roles in the organization and contribute to its overall success.Full Answer >