Organization Manual: Concept, Types and Advantages

After reading this article you will learn about:- 1. Concept of Organization Manual 2. Contents of Organization Manual 3. Types 4. Advantages 5. Drawbacks. 

Concept of Organization Manual:

Organization charts are sometimes supplemented in large organizations by organization manuals. Organization manuals may simply be in the form of brief notes, accompanying the departmental charts to explain the functions of each department and its relationships with other departments. At the opposite extreme, organization manuals may consist of volumes which detail the responsibilities and authority of different posts and the procedures to be adopted in carrying out different tasks.

Clearly this is only appropriate where a high degree of control is both desirable and practicable. This is true of some governmental departments. In brief, organization manual sets down in the form of a booklet all the details of the organization, its objectives and policies, authorities, functions, duties and responsibilities of each unit and all information relating thereto. Copies of organization manual should be available with top managers and also be available for inspection within each department and division.

Contents of Organization Manual:

It is particularly important to include all pertinent material related directly to the company organization in the manual, so that managers at all levels can use it as a convenient source of reference.

The manual should contain the following data:

1. Statement of Company Objectives and Policies:

Organization objectives and policies, in particular, should be spelled out. These state, the Company organization aims and specify those management decisions related to organization which are binding on all managers in the Company.

The Company organization objectives may be as follows:

(a) To arrange functions so that personnel can perform their job most effectively.

(b) To create an organization which will offer the greatest opportunity for individual development.

(c) To organize each unit so that the corporation may take full advantage of growth and expansion opportunities.

2. Glossary of Terms:

To establish a common nomenclature for administrative terms used in the manual, it is advisable to establish a glossary of management terms such as Accountability, Executive, Supervise, Work etc.

3. Organization Procedures:

What standard methods will the Company require of all managers in organization matters? What organization work must be done the same in all units so that it will fit the pattern of over­all company organization activity? Organization procedures prescribe such uniformity. They may be prepared to include such matters as reporting organization changes and similar matters.

Reporting Organization Changes:

If effective organization control is 10 be maintained, there should be clear channels for reporting organization changes.

In most cases, changes should be approved by the accountable manager but cleared through the organization planning specialized staff.

Types of Organization Manual:

(i) Policy manual states the policies of the enterprise. It describes the overall limitations within which activities are to take place.

(ii) Operations manual informs employees of established methods, procedures and standards of doing work.

(iii) Organization manual explains the duties and responsibilities of various departments and their respective sub-divisions, responsibilities and authorities of different employees, etc.

(iv) Rules and regulations manual informs about the operating rules and employment regulations such as hours of work, procedure for taking leave etc.

(v) Departmental practice manual deals in detail with the internal policies, organization and procedures of a particular department.

Advantages of Organization Manual:

(i) Since it contains rules, regulations and various instructions, it enables the employees to learn the various procedures and practices in short time.

(ii) Since instructions and policies are clearly stated, it is easy and quick to take decisions.

Drawbacks of Organization Manual:

(i) Manual preparation is costly and time-consuming.

(ii) Since rules, regulations etc., are all pre-decided, it leaves little scope for individual’s initiative and discretion.