Advantages of Manuals1. 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 Manual1) Preparation is costly and time consuming and process2) 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 Organisation1. Line Organisation2. Line and Staff Organisation3. Functional Organisation4. Committee Organisation
Line Organisation GENERAL MANAGERSALES MANAGER PRODUCTION MANAGER PERSONNEL MANAGER ASST. WORKS MANAGER SUPERIDENDENT FOREMAN WORKERS
ADVANTAGES OF LINE ORGANISATION1) 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 control6) 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 MANAGING DIRECTOR FINANCIAL TECHNICAL ECONOMIC ASSISTANT ADVISOR ADVISOR ADVISOR TO M.D PRODUCTION MANAGER RESEARCH & INDUSTRIAL SYSTEMS TECHNICALDEVELOPMENT EXPERT ENGINEER ENGINEER STAFF FOREMAN SUPERVISOR A SUPERVISOR BWORKER WORKER WORKER WORKER WORKER WORKER
FEATURES OF LINE AND STAFF SYSTEM1. 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 ORGANISATION1. 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 ORGANISATION1. 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 ofsubordinates should be divided according to type ofwork. Factory Manager Superintendent Instruction Time & Cost Route Clerk Gang Boss Inspector Repair Boss Card Clerk Clerk
Features of Functional Organisation1. 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 Organisation1. Based on expert knowledge2. 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 Organisation1. 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 matters5. Coordinating committee:-coordinate among dept.’s6. Executive committee:-power to administer7. Standing committee:-permanent character8. 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 thatdevelop within an organisation and guides thebehaviour of its members.An employee must learn how the particularenterprise does things.
Basic Elements of Culture1. Artefacts – products, services and behaviour patterns of members of orgn.2. Espoused Values – size, profitability, quality3. Basic Assumptions – beliefs taken for granted in an orgn.