Explanation should include
- purpose of lines of authority and responsibilities in an organization
- value of a visual representation of the relationships in an organization
- function of defined channels for communication within an organization
- rationale for the presence or absence of traditional roles (e.g., CEO, CFO, CIO).
Explanation should also include the idea that small start-ups may not have a defined organizational structure at the beginning of their existence.
Process/Skill Questions:
- Why is it important for a business to create an organizational structure?
- How can an organizational structure that is represented on a chart be helpful to an entrepreneurial venture?
- Who is typically at the top of the organizational chart? Why?
- Why should paths of communication within an organization be defined?
- How does an organizational chart help an organization maintain its culture?
- Why must a company review and update the organizational structure as the business changes?