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It is Important because :

- they can see the flow of authority and if the would like to lodge a complaint they no who to go to and complain to (shows the head of each department)

- it tells the type of organisation

- it shows the no of departments and the size of the organisation.

- it shows the channel of communication eg horizontal and/ or vertical

- it shows the inter- relationship between the personnel in the organisation and the different levels

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