An organisation chart is a managerial tool. It helps in specifying authority and responsibility of every .position. The relationships among different persons are also established for smooth working of the organisation.
As organisation chart specifically defines authority and responsibility of people in the enterprise there will be no duplication and overlapping of duties etc.
The organisation chart will help in pointing out the faults, deficiencies, dual command etc. in the organisation.
The organisation chart acts as an information centre to the new entrants and they can easily understand different levels of authority and responsibility.
The charts are also helpful in decision making process. They ct as a guide to the decision makers.
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