An organizational manual is a loose-leaf book or booklet that contains detailed information about an organization.

It is a compact book that details the organisation's structure, duties and responsibilities of each position and department, as well as the procedures, methods and policies used in the organization.

The organizational manual serves as a written guide to the overall organization of the company and its sub-sections

It is a book that supplements the information provided by the organisational chart.

While the organizational chart only provides a basic overview of the organisational structure, the organisational manual provides more detailed information about the organisational structure of a company 

Contents of an organisational manual

The organizational manual contains the following information: 

1. Organization structure, whether it is a line organization, line and staff organisation or functional organization.

2. Company's offices

3. Telephone numbers for internal use

4. Standard procedures 

5. Office rules

6. Statement of objectives.

7. Terms and conditions of employment, that is, information regarding leave, transfer and promotions

8. Job description for top managers

9. Personnel policies and procedures.

10. If applicable, the address of the branches of the company.

11. Full name and address of the organization.

Advantages or benefits Of Organizational Manual

1. Clarity: Every important company policy, procedure, and decisions are well-documented in the organizational manual

These do not need to be explained to employees time and time again

2. Assist new entrants: It helps new entrants in the organization by providing a basic overview of the organization to both new employees and visitors.

Outsiders can gain a better understanding of each department in the organization with the help of an organizational manual.

Furthermore, an organizational manual can help new employees in learning the organization's standard procedures and practices in the shortest time possible.

3. Reduce organizational conflicts: By clearly identifying the sources of authority within the organization, the organization manual reduces jurisdictional conflicts.

It provides written evidence of the authority and responsibility relationship in the organizations, removing any possibility of role conflicts.

Organizational conflicts can be resolved with the help of an organizational manual.

4. Assist in delegation: The organizational manual aids delegation by distinguishing between reserved authority and delegated authority.

5. Controlling stress is reduced: The organizational manual outlines the rules and regulations that employees must follow.

As a result, control work is decreased because employees are aware of the dos and don'ts in the organization.

6. Information centre for employees: The organizational manual outlines the methods, procedures, and policies that must be followed by all members of the organization.

It also aids employees in understanding their roles and responsibilities in the organisation 

7. Standardization of methods: The preparation of the organisational manual standardizes the methods and procedures that will be used in the organization.

8. Ability to make quick decisions: The organization manual enables employees to make quick decisions because instructions and policies are stated in clear terms.


Limitations of drawbacks of organisational manual

1. Expensive to keep: Keeping organizational manual costs a lot of money because it requires a lot of writing, compiling, and editing.

The preparation of an organizational manual increases the administrative costs of the organization.

This makes it unsuitable for small businesses with limited resources.

2. Time-consuming: Organizational manuals necessitate more writing, compilation, and editing, all of which take time.

Furthermore, reviewing the organizational handbook regularly is both time and energy-consuming.

3. Difficult to maintain: Building on the previous points, maintaining and ensuring that the organizational manual is up to date is extremely difficult.

Changes in the business, employee behaviour, and other factors might quickly render it outdated 

4. It is static: Organizational manual only shows the static state of affairs in the organization.

The organisational manual shows the "supposed" human relationship in the organisation, but some organizations do not strictly adhere to this for the sake of flexibility.

It does not show any flexibilities that may exist in the organization.

In reality, Organizational manuals create rigidity in the organization by standardizing administrative procedures.

5. May create misleading effects: Organizational manual may create misleading effects If relevant changes in the organization are not quickly incorporated into the organization manual, 

For example, if a change in the company's employment policy is not quickly reflected in the organisational manual, it may have an impact on new employees who may have based their decision to work for the organization on the outdated manual.

6. May reveal embarrassing information: Organizational manual may put on the record information that no one would like to see exposed

7. Not a guarantee for success: Creating an organizational manual is neither a guarantee of organizational success nor is it a guarantee of a good management style.

This is one of the reasons why some organizations do not prepare organisational manuals

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