Certified Dietary Manager (CDM) Practice Exam

Why is an organization chart useful for management?

1. It shows the financial status of an organization

2. It helps in defining employee performance metrics

3. It provides clarity on employee roles and hierarchy

4. It lists all job descriptions for the company

The correct answer is: It provides clarity on employee roles and hierarchy

An organization chart is particularly useful for management because it provides clarity on employee roles and hierarchy. This visual representation helps to outline the structure of the organization, showing how different positions relate to one another, who reports to whom, and how various departments are aligned. This clarity is essential for effective communication and collaboration within the organization, helping employees understand their specific roles and responsibilities as well as how they fit into the larger organizational framework. Understanding this hierarchy can also facilitate more efficient decision-making processes, as employees know the appropriate channels for communication and reporting.