An organisation chart shows who has authority over whom, but it does not show the extent of authority of the duties each person in the organisation is expected to perform, except in so far as duties are implied by job titles. For this reason, big undertakings prepare organisation manuals that include job descriptions and other information in addition to the charts. A job description includes factual statements of job contents in terms of its duties and responsibilities.
An organisation manual is an authoritative guide to the organisational members. It consists of records of top management decisions, standard practices and procedures and the description of various jobs. With such information available in the manual, employees are not required to approach their superiors for instruction and guidance, causing interruption of work and resulting in wastage of time and energy of the superior and the subordinates.
Importance of Manual
A manual can be a valuable aid to management which more than justifies the amount of work and money involved in its compilation. The availability of a good manual helps individuals to determine the responsibilities of their jobs and their relationship with other jobs in the organisation. Jurisdictional conflicts and overlapping can be avoided. The sources and degree of authority are also made clear. Thus, it can help to make instructions definite and shows how each employee and his job fits into the total organisation and how he can contribute to the achievement of organisational objectives as well as maintain good relations with other employees. A reference to the manual can quickly remove misunderstandings. It relieves managers the necessity of repeating the same information time and again. It provides uniformity and consistency of procedures and practices. It facilitates training of new employees as it contains in writing the established routines and practices with respect to the jobs. Since manuals are revised periodically or after every major changes, they serve as effective refreshers for employees who have been on the payroll for some time. Both delegation of authority and management by exception are promoted by the use of manuals.
