“A prominent manufacturer once said that although he could see some use for an organization chart for his factory, he had refused to chart the organization above the level of factory superintendent. His argument was that charts tend to make people overly conscious of being superiors or inferiors, tend to destroy team feeling, and give persons occupying a box on the chart too great a feeling of "ownership"? Another top executive once said that if an organization is left uncharted, it can be changed more easily and that the absence of a chart also encourages a competitive drive for higher executive positions on the part of the uncharted middle-management group.
These reasons for not charting organization structures are clearly unsound. Subordinate - superior relationships exist not because of charting but because of essential reporting relationships. As for a chart's creating a too comfortable feeling and causing a lack of drive on the part of those who have "arrived", these are matters of top leadership - of reorganizing whenever the enterprise environment demands, of developing a tradition of change, and of making subordinate managers continue to meet adequate and well-understood standards of performance.”

—  Harold Koontz

Source: Principles of management, 1968, p. 379; About the advantages of organizational charts

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Harold Koontz 17
1909–1984

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“Every organization structure, even a poor one, can be charted, for a chart merely indicates how departments are tied together along the principal lines of authority. It is therefore somewhat surprising to find top managers occasionally taking pride in the fact that they do not have an organization chart or, if they do have one, feeling that the chart should be kept a secret.”

Harold Koontz (1909–1984)

Source: Principles of management, 1968, p. 379

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Context: One must permit his people the freedom to seek added work and greater responsibility. In my organization, there are no formal job descriptions or organization charts. Responsibilities are defined in a general way, so that people are not circumscribed. All are permitted to do as they think best and to go to anyone and anywhere for help. Each person is then limited only by his own ability.

“Organization charts are subject to important limitations. A chart shows only formal authority relationships and omits the many significant informal and informational relationships.”

Harold Koontz (1909–1984)

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“In analyzing organization work, a single chart can frequently express more than any amount of detailed written explanation. First of all, clearly define author- ities within your establishment; then chart those authorities simply and graphically, so that every workman knows to whom he is responsible, and every executive knows who is responsible to him. Place this chart conspicuously in every department where each employee can see it. In case of disputed authority, final proof is immediately at hand. There is then no loop-hole through which a neglectful workman, foreman or executive can crawl no longer does he have the excuse that he thought somebody else was going to do it. In clean-cut form, his duties and relations to other men of the organization are laid down once and for all, and responsibility rests on the right man. Failure so to specify responsibilities inevitably means confusion all down the line.”

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“As plainly as if it had been the top line on the oculist’s chart I could see what the future held for Bertram.”

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“In analyzing organization work, a single chart can frequently express more than any amount of detailed written explanation. First of all, clearly define author- ities within your establishment; then chart those authorities simply and graphically, so that every workman knows to whom he is responsible, and every executive knows who is responsible to him. Place this chart conspicuously in every department where each employee can see it. In case of disputed authority, final proof is immediately at hand. There is then no loop-hole through which a neglectful workman, foreman or executive can crawl no longer does he have the excuse that he thought somebody else was going to do it.”

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In clean-cut form, his duties and relations to other men of the organization are laid down once and for all, and responsibility rests on the right man. Failure so to specify responsibilities inevitably means confusion all down the line.
Source: Industrial organization (1914), p. 24-25

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“The writer has found, in analyzing and diagnosing organization and accounting work, that charts can express more on one page than is sometimes expressed in several chapters of writing, and has been the author and originator of many methods of charting industrial expressions. It is necessary, as a first step, for analytical and other purposes, to make a chart expressing all of the relations governing the organization of a business so as to show the very foundation upon which all authorities, accounting, and business transactions are based and conducted. There have been more failures scored both personally and financially for lack of these very elements in a business than by reason of any other one thing. As well try to build a house without a foundation as to try to conduct a business, especially a manufacturing business, without proper organization.”

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