Both the organization chart and job description are simplified abstractions of the actual situation. In reality there are many more positions and relationships than indicated in the organization chart. It might happen that industrial cleaning might not clean all required things. The degree of authority a superior has over his subordinate is also not indicated in the chart, nor is the relationship between two managers at an equal level reflected in the organization chart.
Despite all these limitations, the organization chart is an extremely useful tool in understanding and designing the structure. The structure of an organization, unlike that of a physical mechanical or biological system, is not visible. Therefore, it can only be understood by a representative model and by observing its behaviour.
The elements of an organization structure are:
1. the network of formal relationships and duties, i.e. the organization chart plus the job descriptions,
2. the manner in which various tasks and activities are assigned to different people and departments (differentiation),
3. the manner in which the separate activities and tasks are coordinated (integration),
4. the power, status, and hierarchical relationships within the organization (authority system),
5. the planned and formalize policies, procedures and controls that guide the activities and relationships (administrative system), and
6. the flow of information and communication network.