Advantages of Manuals

1. Writing all –important decisions relating to internal organisation.

2. Avoids conflicts and overlapping of authority.

3. Enables employees know the various procedure and practice in the shortest possible time.

4. Enables quick decision.

5. Contains rules and regulations which employees must follow.

Disadvantages of Manual

1) Preparation is costly and time consuming and process

2) Little scope for individual’s initiative and direction.

3) Bring rigidity to the organisation.4) Put on record those relationships which no

one like to see exposed.

Forms of Organisation

1. Line Organisation2. Line and Staff Organisation3. Functional Organisation4. Committee Organisation

Line Organisation

GENERAL MANAGER

PRODUCTION MANAGERSALES MANAGER PERSONNEL MANAGER

ASST. WORKS MANAGER

SUPERIDENDENT

FOREMAN

WORKERS

ADVANTAGES OF LINE ORGANISATION

1) Easiest to establish and Simple to explain.

2) Fixes responsibility for the performance.

3) Clear cut identification of authority and responsibility.

4) Economical and effective.

5) Unity of control

6) Excellent discipline in the enterprise.

7) Facilitates prompt decision-making.

8) Effective coordination of activities within each dept.

DISADVANTAGES OF LINE ORGANISATION1) With growth, superiors will get overloaded.2) Autocratic system it is dictatorial.3) Limited communication as orders are followed.4) Nepotism and favouritism.5) Lack of specialised skill of experts. Compared to

modern business.6) Rigid and inflexible.7) Concentration of authority is at the top.

LINE AND STAFF ORGANISATION

FINANCIAL ADVISOR

TECHNICAL ADVISOR

ECONOMIC ADVISOR

ASSISTANT TO M.D

SUPERVISOR A

SYSTEMS ENGINEER

INDUSTRIAL ENGINEER

TECHNICAL EXPERT

RESEARCH & DEVELOPMENT

STAFF

FOREMAN

PRODUCTION MANAGER

SUPERVISOR B

WORKER WORKER WORKER WORKER WORKER WORKER

MANAGING DIRECTOR

FEATURES OF LINE AND STAFF SYSTEM

1. Line officers command over authority over the subordinates and are accountable for tasks entrusted to them.

2. Staff officers prepare plan and give advice to the line officers.

3. Based on Principle of Specilasation.

MERITS OF LINE & STAFF ORGANISATION

1. EXPERT KNOWLEDGE2. EXPERT ADVICE AND GUIDANCE3. STAFF OFFICERS TAKE IMPORTANT ROLE4. STAFF SPECILAIST HELP LINE MANAGERS BETTER

DECISIONS5. PERMITS UNDIVIDED REPONSIBILITY AND

AUTHORITY & STAFF SPECIALISATION.6. GREATER FLEXIBILITY

DEMERITS OF LINE AND STAFF ORGANISATION

1. Unless clear indication of duties and responsibilities It can create confusion.

2. Generally conflict between line and staff executives.

3. Line managers may resent activities of staff members.

4. Staff experts may be ineffective.

5. Large number of staff executives in addition to officers becomes expensive for organisation.

6. Staff managers not accountable for results, may not perform.

7. Line Manager more practical than Staff Manager more theoretical approach.

FUNCTIONAL ORGANISATIONWhole task of management and direction of subordinates should be divided according to type of work. Factory Manager

Superintendent

Route Clerk

Workman

Instruction Card Clerk

Time & Cost Clerk

Gang Boss Inspector Repair Boss

Features of Functional Organisation

1. Work divided into different functional dept.’s2. Functional specialist right to give orders and has

authority.3. Workers receive instructions from different

specialists.4. Anybody to take decision after consulting with

functional specialist.5. Workers have to perform limited number of

functions.

Advantages of Functional Organisation

1. Based on expert knowledge

2. Division of labour is planned.

3. No scope for one-man control.

4. Ensures separation of mental and manual functions.

5. Joint supervision of organisation reduces burden top exec.

6. Greater scope of expansion.

7. Better control and supervision of organisation.

Disadvantages of Functional Organisation

1. Unstable – workers work under different bosses.

2. Foreman of equal rank.

3. Coordinating influence needed to ensure smooth functioning.

4. Inability to locate and fix responsibility affects discipline and morale of workers.

5. Very costly system as large number of specialists to be appointed.

COMMITTEE ORGANISATIONAccording to Hicks, “A committee is a group of people

who meet by plan to discuss or make a decision for a particular subject.”

Objectives of Committees1. Consultations with various persons to secure their

view-points.2. To give participation to various groups.3. To secure cooperation of different departments.4. To coordinate the functioning of different dept.’s

and individuals.

Types of Committees1. Line Committee :- vested with authority and

responsibility to decide whose decision implemented.

2. Staff Committee:- merely for counsel and advice.

3. Formal committee:- clear-cut jurisdiction as part of orgn.

4. Informal committee:-formed to advice on certain matters

5. Coordinating committee:-coordinate among dept.’s

6. Executive committee:-power to administer

7. Standing committee:-permanent character

8. Ad hoc committee:-temporary bodies

ADVANTAGES OF COMMITTEE ORGN.1. Brings collective knowledge and experience for

solving problems.2. Offer scope for group deliberations and group

judgment.3. Brings coordination – integrates varying points of

view.4. Motivates employees for performance as they

have a say in orgn.5. Facilitates pooling of authority for making

decisions.6. Promotes organisation cohesiveness.

Disadvantages of Committee Orgn.1. Manager can misuse or avoid decision-making by approaching

committee.

2. Unable to take decision due to conflicting views.

3. Take more time in procedural matters.

4. Expensive device in terms of cost and time.

5. Committee findings represent compromise of different viewpoints.

6. No member of committee can be held individually responsible for wrong decisions.

7. Difficult to maintain secrecy.

ORGANISATION CULTUREIt is a system of shared beliefs and attitudes that develop within an organisation and guides the behaviour of its members.

An employee must learn how the particular enterprise does things.

Basic Elements of Culture

1. Artefacts – products, services and behaviour patterns of members of orgn.

2. Espoused Values – size, profitability, quality

3. Basic Assumptions – beliefs taken for granted in an orgn.

Successful Organisational Culture

1. Adaptability2. Involvement3. Clear Mission4. Consistency