Post on 14-Jan-2015
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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