An organization chart is a diagram showing how employees and tasks are grouped and how the lines of communication and authority flow within an organization. These charts can look very different depending on a number of factors, including the nature and size of the business, the way it is departmentalized, its patterns of delegating authority, and its span of management.

Assignment

 1. Working in a team, use the following information to draw an organization chart: The KDS Design Center works closely with two home-construction companies, ACME Homebuilders and Highmass. KDS’s role is to help customers select materials for their new homes and to ensure that their selections are communicated accurately to the builders. The company is also a retailer of wallpaper, blinds, and drapery. The retail department, the ACME Homebuilders accounts, and the Highmass accounts make up KDS’s three departments. The company has the following positions: president, executive vice president, managers, two appointment coordinators, two ACME Homebuilders coordinators, two Highmass coordinators, two consultants/

designers for the Amex and Highmass accounts, 15 retail positions, and four payroll and billing personnel.

2. After your team has drawn the organization chart, discuss the following:

a. What type of organizational structure does your chart depict? Is it a line, line-and-staff, matrix, or virtual structure? Why?

b. How does KDS use departmentalization?

c. To what extent is authority in the company centralized or decentralized?

d. What is the span of management within KDS?

e. Which positions are line positions and which are staff? Why?

3. Prepare a three-page report summarizing what the chart revealed about relationships and tasks at the KDS Design Center and what your team learned about the value of organization charts. Include your chart in your report.