Organisation Chart
An organisation chart is a diagrammatical form which shows important aspects of an organisation including the major functions and their respective relationships.
Characteristics:
1. Diagrammatical representation
2. Shoes principal lines of authority in the organisation.
3. Shows the interplay of various functions and relationships.
4. Indicates channel of communication.
Advantages
1. Tool of administration to tell the employees how to fit into organisation
2. Glance of line of authority and responsibility
3. Serves as a guide to new personnel to understand the organisation
4. Play a significant role in pointing out inconsistencies and deficiencies in certain relationships.
Limitations:
1. Shows only formal relationships; fails to show informal relationships.
2. Shows only static state of affairs but not flexible
3. Shows line authority but not how much he is accountable.
4. Introduces rigidity in relationships
5. May cause confusions and misunderstanding
Types:
a) Vertical
b) Horizontal
c) Circular
Horizontal chart:
An organisation chart is a diagrammatical form which shows important aspects of an organisation including the major functions and their respective relationships.
Characteristics:
1. Diagrammatical representation
2. Shoes principal lines of authority in the organisation.
3. Shows the interplay of various functions and relationships.
4. Indicates channel of communication.
Advantages
1. Tool of administration to tell the employees how to fit into organisation
2. Glance of line of authority and responsibility
3. Serves as a guide to new personnel to understand the organisation
4. Play a significant role in pointing out inconsistencies and deficiencies in certain relationships.
Limitations:
1. Shows only formal relationships; fails to show informal relationships.
2. Shows only static state of affairs but not flexible
3. Shows line authority but not how much he is accountable.
4. Introduces rigidity in relationships
5. May cause confusions and misunderstanding
Types:
a) Vertical
b) Horizontal
c) Circular
Horizontal chart:
Vertical
Chart:
Circular:
Organisation Manuals:
An organisation is an authoritative guide to the company’s organisation. It consists of records of top management decisions, standard practices and procedures and the description of various jobs.
Types:
1. Policy manual
2. Operations manual
3. Organisation manual
4. Rules and regulations manual
5. Departmental practice manual.
Advantages:
1. Contains all important decisions relating internal organisation.
2. Contains various rules and regulations
3. Enables new employees to understand nvarious procedures
4. Enables quick decisions as instructions and policies.
Drawbacks:
1. Costly and time consuming
2. Brings rigidity in organisation.
3. Puts record on relationships which need not be exposed.
Contents of Manual:
1. Introductory
a. Nature of enterprise
b. Objective of enterprise
c. Location of enterprise
d. Organisation structure
2. Administrative
a. Purpose of manual
b. Policies of management
c. Areas of major organisational problems
d. Job descriptions
e. Rules and regulations
f. Organisational charts
3. Procedural
a. Instructions relating to the performance of standardised jobs.
b. Instructions relating to the performance of non-standardised jobs.
c. Specimen forms to be used.
An organisation is an authoritative guide to the company’s organisation. It consists of records of top management decisions, standard practices and procedures and the description of various jobs.
Types:
1. Policy manual
2. Operations manual
3. Organisation manual
4. Rules and regulations manual
5. Departmental practice manual.
Advantages:
1. Contains all important decisions relating internal organisation.
2. Contains various rules and regulations
3. Enables new employees to understand nvarious procedures
4. Enables quick decisions as instructions and policies.
Drawbacks:
1. Costly and time consuming
2. Brings rigidity in organisation.
3. Puts record on relationships which need not be exposed.
Contents of Manual:
1. Introductory
a. Nature of enterprise
b. Objective of enterprise
c. Location of enterprise
d. Organisation structure
2. Administrative
a. Purpose of manual
b. Policies of management
c. Areas of major organisational problems
d. Job descriptions
e. Rules and regulations
f. Organisational charts
3. Procedural
a. Instructions relating to the performance of standardised jobs.
b. Instructions relating to the performance of non-standardised jobs.
c. Specimen forms to be used.
