OFFICE ORGANISATION PPT

UNIT -II

S.PUNITHAVALLI
ASSISTANT PROFESSOR
DEPARTMENT OF COMMERCE
ADHIYAMAN ARTS AND SCIENCE COLLEGE FOR
WOMEN
OFFICE MANUALS
• An office manual means a handy form of book or booklet
containing information relating to the policy, organization
system, routines and procedures methods and standards and the
rules and regulations regarding employment.
• An office manual is prepared to help the employees know all
relevant information regarding the organization, its set up i.e.
structure and how he fits into it.
OFFICE MANUALS
Definition:
• According to George R. Terry, “An office manual is a
written record of information and instructions which concern
and can be used to guide the employee’s efforts in an
enterprise”.
IMPORTANCE OF MANUALS
1. Employees understand their position, duties and responsibilities
in an Organization.
2. Employees understand their role in the achievement of office
Objectives.
3. There is a possibility of maintaining good relations among the
employees by themselves.
4. Both existing and new employees freed the management in getting
the same information, explanations and instructions repeatedly.
IMPORTANCE OF MANUALS
5. The concerned employees are held responsible if the duties are not
performed by them in a specified manner.

6. Delegation of authority can be enhanced throughout the organization set

up without much difficulty.

7. Each employee can understand the extent of authority delegated to him.

8. New employees are getting training with the help of office manual by

knowing policies, practices, systems, routines and procedures.

9. Office manual is imparting refresher training to existing employees.

CONTENTS OF AN OFFICE MANUAL
1. Name, address, telephone number, fax and e-mail address of the
organization. If the organization has branches, the address,
telephone number, fax and e-mail address of the branches are also
given in the office manual.

2. The nature of the business carried on by the company and its

organizational structure.

3. The names and address of the key executives with their phone
number of office and residential and their cell number.
4.List of the products manufactured by the concern.

5. Office rules and regulation like office hours, salary structure, tea time, lunch time,

pay days, leave rules, permission, medical benefits, vacation and holiday arrangements,

promotions, transfers, accidents, compensation, training, pay cut, disciplinary action,

retirement, suspension, dismissal, retrenchment, maternity leave, lay off etc.

6. Structure of authority and responsibility relationship in the organization.

7. Office facilities like rest room, clock room, lunch room, canteen facilities, visitors

room, recreation facilities, reading room, toilets, dispensaries, transit facilities,

telephone facilities, supplies on cooperative basis etc.

8. Purposes of the each manual separately

9. Safety instructions to be followed in the case of fine, accident, serious illness or any

other emergency.

10. The name and address of the male and female doctors and nurse who are rendering

service on behalf of them are also mentioned. Their phone numbers and cell numbers are

also mentioned.

11. Organizational policies framed by the top management. Policy covers credit sales,

discount, training and development of employees, selection of advertisement media,

selection of employees, overtime and the like.

12. Relationship among different departments and individuals.

13. Details of bonus, incentive schemes, loans and advances, grievance handling

procedures and attendance procedures.

14. Procedures to be followed for buying furniture and stationary and other

materials, repairs and maintenance of of6ce equipment.

15. Instructions relating to the performance of repetitive work.

16. Instructions relating to the performance of non-repetitive work.

17. Specimen of leave letter form, permission form, authorization form of receiving

salary and the like.

ADVANTAGES OF OFFICE MANUALS
1. An office manager can easily supervise the work of his sub-ordinates
and exercise control on them.

2. The need of giving explanation and instructions to existing and new

employees is reduced since the manuals are prepared to impart ready
information.
3. An office manual is an aid in the training of new employees since the
manuals contain a well established systems, routines and procedures.
4. Doubts of employees can be cleared very easily.
ADVANTAGES OF OFFICE MANUALS
5. Office manuals help in fixing responsibility of employees for non performance of work.

6. Office manual brings uniformity in the performance of work both in the head office and

branches.

7. Changes can be very easily incorporated as and when required.

8. Office manual reduces the chances of errors and frauds.

9. The preparation of office manual brings useless work to light so that useless activities

are isolated or giving less importance to them.

10. Each employee can understand the extent of authority delegated to him with

assignment of job.
Disadvantages
1. Preparation and frequent revision of office manuals involves high cost in terms of

time, labour and money.

2. It is very difficult to prepare and keep a manual up to date.

3. Office manual leaves little scope for personal initiative and talents on the part of the

executives.

4. Office manuals bring a number of bottlenecks in the effective performance of work

instead of bringing free flow of work.

5. Systems, routines or procedures are likely to be misinterpreted if an ambiguous

language is used in the preparation of manual.

6. If the manuals are not used by the employees properly in time,
human resources and expenses spent on the preparation of manuals
will be wasted.

7. It may discourage team spirit among the employees at times.

8. If the manuals are not revised at frequent intervals or

periodically, they became outdated.

9. Sometimes inadequate or incomplete or vague information may

be given in the manuals.
AUTHORITY AND RESPONSIBILITY
Managerial action in a formal authority. Without authority
the executive cannot compliance of his orders from
subordinates.
Definition:
1. Authority is right to give order and the power to exact
obedience. –Hendri foyal
2. “Authority means the power to command others” – to act
or not to act in a manner deemed fit by the possessor of
authority and is exercised in furtherance of enterprise or
departmental purpose. – KOOTZ &O’DONNELL
TYPES OF AUTHORITY
There are 5 types of authority
• Formal authority-the top and is transmitted downwards. (line
authority)
• Acceptance authority-the acceptance theory of authority
states that a manager’s authority over his/her subordinates
depends on the willingness of the subordinates to accept
his/her right to give orders, and comply with them. 
• Authority of the situation- emergence and unusual events
• Position authority- enjoy the virtue of his superior position
• Technical authority –technical or computer authority has
come in to use
RESOPNSIBILITY
The opportunity or ability to act independently and take
decisions without authorization.
RELATIONSIP BETWEEN AUTHORITY AND
RESPONSIBILTY:
 BASIS FOR COMPARISON AUTHORITY RESPONSIBILITY

Meaning Authority refers to the power or right, Responsibility denotes duty or

attached to a particular job or obligation to undertake or accomplish
designation, to give orders, enforce a task successfully, assigned by the
rules, make decisions and exact senior or established by one's own
compliance. commitment or circumstances.

What is it? Legal right to issue orders. Corollary of authority.

Results from Formal position in an organization Superior-subordinate relationship

Task of manager Delegation of authority Assumption of responsibility

Requires Ability to give orders. Ability to follow orders.

Flow Downward Upward

Objective To make decisions and implement it. To execute duties, assigned by
superior.

Duration Continues for long period. Ends, as soon as the task is

accomplished.
Delegation of authority
• Delegation of authority is the process of transferring
responsibility for a task to another employee. As a manager,
you can typically transfer responsibility to any of your direct
team members. That employee may then decide to delegate
some of those responsibilities among their team members if
necessary.
IMPORTANCE
1. Relieving Top Executives

2. Improved Functioning

3. Use of Specialists

4. Helps in Employee Development

5. Helps in Expansion and Diversification

6. Development of Managers

7. Development of Subordinates

8. Better Decision-Making
IMPORTANCE
9. Faster Decisions
10. Specialization
11. Job Satisfaction
12. Promotes Interpersonal Relationships
13. It has Dynamics of Management and Essence of Sound Organisation
14. It is an Art of Getting Things Done
15. It Establishes Healthy Relationship

16. It Facilitates Management and a Few Others.

What is Delegation?
• When your business starts growing at a large speed, the tasks
that you need to do become more complex and
different responsibilities among business members become less
defined. You need to do more and more things. Disorganization
can become a part of your everyday work.
PROCESS OD DELECATION
Step 1: Sort the tasks that can be delegated.

You need to analyze and classify what should you continue to do,
and what can be delegated. You will not lose anything, because
the most important tasks will stay in your full control, but the
tasks that are repeatable, easy to be done and still need to be done
on one side, and something that’s not so important for your
attention can be delegated.
PROCESS
Step 2: Determine who will be in charge.

If you want to delegate some of your tasks, you need to have people
who can work on delegated tasks. Simply, find people who will be
responsible for some of your current tasks.
Step 3: Define the task that will be delegated.

Before you delegate some of your tasks you need precisely to define
that tasks. You don’t want to work on unclear or poorly defined
tasks. The same is for the person who will be in charge of that task.
• Step 4: Delegate tasks.
• The delegation process is transferring the responsibility for the
tasks from you to another person through notifying that person.
When you tell the person about what he needs to do, you need
to tell them your clear expectations. This will be helpful for the
person in charge, especially if the delegated task, until now,
was only your responsibility.
PROCESS
Step 5: Monitor and encourage.

The delegation process doesn’t finish when you transfer the responsibility. You
must follow the implementation process. If there is a need for something, your
responsibility is to encourage the person in charge and give him adequate help.

Step 6: Evaluation.

The last step in a delegation process is your responsibility. You need to check
how the delegated task was performed. Should you make some changes to
increase productivity in the future?
Factors affecting delegation of authority
• Cost of decision
• Need for uniformity policy
• phil. Of mgt.
• Availability of capable management
• Size of firm
• Control available
Centralization of authority
• “Centralization” is the systematic and consistent reservation of
authority at central points in the organization.”
• The implication of centralization can be :-
 Reservation of decision making power at top level.
 Reservation of operating authority with the middle level
managers.
 Reservation of operation at lower level at the directions of
the top level.
Factors Determining Centralization of authority
• Nature of Organization: When the organization is generally a
sole proprietorship or partnership entity with less number of
employees to be managed, it can have a centralized system.
• Size of the Organization: The organization which are small in
size and operating on a small scale can be efficiently managed
by the top management hence following a centralized system.
• Nature of Task: The organizations engaged in business
 operations which does not require much expertise or
specialization, can be managed through centralization.
• Delegation Ability: The capability of the management to
delegate the responsibilities to the subordinates while keeping
the charge in their hand is another factor determining the
organizational structure.
• Employee’s Efficiency: If the employees lack skills and
efficiency to take up the responsibility and accountability of
the work to be performed, the management will go for
centralization of the organization.
Advantages of Centralization
• Cost Efficient: The management need not spend much on the
office and administrative expenses in a centralized
organization. Even the cost of hiring experts and highly
experienced personnel at each level is saved due to the
centralized decision-making process.
• Better Command: The management can hold a better
command over the subordinates and the subordinates also
clearly know whom to follow. There is proper control over the
subordinate actions, and the management is well aware of the
strengths and weaknesses of the subordinates.
• Enhances Work Quality: The subordinates are answerable
directly to the top management, and therefore they
continuously aim at improving the work quality. It also leads to
standardization of the process and reduces the wastage.
• Uniformity in Action: When the control lies in the hands of
few, the methods and techniques used are usually the same
throughout all the levels and departments, thus encouraging the
subordinates to perform uniformly.
• Focus on Vision: The top management clearly defines and
better understand the organizational vision. Therefore, it aligns
all the resources, subordinates, activities and strategies towards
the achievement of the vision.
• Proper Coordination: The top management frames a uniform
policy for subordinates at different levels, integrate their course
of action and ensures coordination among all the subordinates.
Disadvantages of Centralization
Decentralization
• “Decentralization” is a systematic delegation of authority at all
levels of management and in all of the organization.”
Importance
• Relief to the top executives
• Motivation of subordinates
• Improvement of work performance
• Promotion of the subordinates' morale
• Increasing flexibility
Advantages
• Increasing in efficiency of management
• Facilitating diversification of activities
• Minimization of risk
• Ensuring quick performance
• Developing future executives
• Motivation the subordinates for better performance
• Improvement of morale
Disadvantages
• Problem of co-ordination
• Lack of uniformity
• Costly and uneconomical
• Delay in decision making
• Limitation of scale
Principles of decentralization
• Proximity of Decision-making Points:
•  Real Delegation of Authority
• Confidence in the Subordinates:
• Conciliation between Line and Staff Personnel:
• Parity of Responsibility and Authority:
• Conviction about the Superiority of Decentralised Decision
Factors Determining the Degree of Decentralization:

• Size of the Organisation

• History of the Enterprise
• Outlook of the Top Managers
• Availability of Competent Managers
• Dispersal of Operations
• Uniformity of Policy
• Control Techniques
• Importance of Decision
• Rate of Change in the Organisation
• Environmental Influence