An organizational chart is a diagram of the organization of an enterprise. Its pyramid shape illustrates the hierarchy system that exists in the organization. The most senior position in the organization is placed by itself at the apex. The pyramid gets wider towards the bottom depicting the greater number of workers at its base.
Those who have the power to issue commands have authority in an organization. In the organization chart above the sales manager has the authority in the Sales department. All persons with the same level of authority are placed at the same level on the chart. For example the sales manager and the accounts manager have the same level of authority in their various departments.
Responsibility is the capacity to accept duties and to carry out their tasks. Both sales supervisors are responsible to the sales manager.
The chart shows the following:
-each person’s position
-the number of levels of managers
-to whom each employee is responsible (reports) to
-the span of or (area) of control for senior staff members.