1. 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.

2. 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.

3. Forms of Organisation
1. Line Organisation
2. Line and Staff Organisation
3. Functional Organisation
4. Committee Organisation

4. Line Organisation
GENERAL MANAGER
SALES MANAGER PRODUCTION MANAGER PERSONNEL MANAGER
ASST. WORKS MANAGER
SUPERIDENDENT
FOREMAN
WORKERS

5. 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.

6. DISADVANTAGES OF LINE ORGANISATION
1) 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.

7. LINE AND STAFF ORGANISATION
MANAGING DIRECTOR
FINANCIAL TECHNICAL ECONOMIC ASSISTANT
ADVISOR ADVISOR ADVISOR TO M.D
PRODUCTION MANAGER
RESEARCH & INDUSTRIAL
SYSTEMS TECHNICAL
DEVELOPMENT EXPERT ENGINEER
ENGINEER
STAFF
FOREMAN
SUPERVISOR A SUPERVISOR B
WORKER WORKER WORKER WORKER WORKER WORKER

8. 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.

9. MERITS OF LINE & STAFF ORGANISATION
1. EXPERT KNOWLEDGE
2. EXPERT ADVICE AND GUIDANCE
3. STAFF OFFICERS TAKE IMPORTANT ROLE
4. STAFF SPECILAIST HELP LINE MANAGERS BETTER
DECISIONS
5. PERMITS UNDIVIDED REPONSIBILITY AND
AUTHORITY & STAFF SPECIALISATION.
6. GREATER FLEXIBILITY

10. 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.

11. FUNCTIONAL ORGANISATION
Whole task of management and direction of
subordinates should be divided according to type of
work. Factory Manager
Superintendent
Instruction Time & Cost
Route Clerk Gang Boss Inspector Repair Boss
Card Clerk Clerk

12. Features of Functional Organisation
1. Work divided into different functional dept.’s
2. 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.

13. 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.

14. 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.

15. COMMITTEE ORGANISATION
According 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 Committees
1. 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.

16. Types of Committees
1. 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

17. 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.

18. 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.

19. ORGANISATION CULTURE
It 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.

20. 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.

21. Successful Organisational Culture
1. Adaptability
2. Involvement
3. Clear Mission
4. Consistency