Introduction

Organisation is designed on the basis of principles of division of labour and span of management. The success of the organisation depends upon the experience and competence of the officers of the organisation. There is a necessity of chalking out the line of authority among the people who are working in an organisation to achieve the desired results. Besides, it involves the determination of duties among the officers and combining the activities of all officers to get the desired results. According to Kimball and Kimball, "The problem of an organisation is to select and combine the efforts of men of proper characteristics so as to produce the desired results."

Nature, scale and size of the business are the normal factors which determine forms of internal organisation. The following common types of organisations find a place in the structure of internal organisation.

1. Line, Military or Scalar organisation.

2. Functional organisation.

3. Line and staff organisation.

4. Committee organisation.

5. Project organisation.

6. Matrix organisation.

7. Freeform organisation.

A brief explanation of the above types of organisations is given below:

Line Organization

Line organisation is the simple and oldest type of organisation followed in an organisation. Under line organisation, each department is generally a complete self- contained unit. A separate person will look after the activities of the department and he has full control over the department.

There are certain powers which will be given to line executives to take decisions whenever a need arises. He communicates his decision and orders to his subordinates. The subordinates, in turn, can communicate them to those who are immediately under them.

Such decision making authority is to flow from the top management level to the bottom. The top management people have greater decision making authority than the bottom level executives. It should be noted that in this type of organisation, an executive is independent of other executives of the same level (say departmental heads). In other words, the same level executives do not give or receive any orders amongst themselves. But they receive orders from their immediate boss (general manager) and give orders to their subordinates. Hence, it is known that all the departmental heads are responsible to the general manager. The general manager, in turn, is responsible to the board of directors. The board of directors is responsible to the shareholders who are the owners.

This type of organisation is followed in the army on the same pattern. So, it is called military organisation. Under this type of organisation, the line of authority flows from the top to bottom vertically. So, it is called line organisation.

Characteristics

1. It consists of direct vertical relationships.

2. Authority flows from top level to bottom level.

3. Departmental heads are given full freedom to control their departments.

4. Each member knows from whom he would get orders and to whom he should give his orders.

5. Operation of this system is very easy.

6. A senior member has direct command over his subordinates.

7. Existence of direct relationship between superiors and subordinates. 

8. Each member knows to whom he is responsible for the accomplishment of objectives of the organisation.

9. The superior takes decisions within the scope of his authority.

Advantages

1. Simplicity

A line organisation is very easy to establish. Its workers can understand concept and relationship with others without any difficulty. There is no complication in its ideals.

2. Division of authority and responsibility

Each person has his area of authority which is clearly explained to him. So he knows to whom he is responsible for doing the job. No person could share off his own responsilibity after it has been fixed.

3. Unity of control

According to unity of control, an individual can receive orders only from one superior. It means, that a subordinate is responsible only to one superior and he gets orders only from him.

4. Speedy action

Under line organisation, there is a proper division of authority and responsibility and unity of command. Hence, an individual can take decisions and execute the plans without any delay.

5. Discipline

The authority flows from top to bottom. Loyalty and discipline can be maintained among the employees of the organisation without much difficulty.

6. Economical

Since line organisation is a single type of organisation, it is economical. 

7. Co-ordination

The business activities are grouped on functional basis. Each department is responsible for a function, so the department heads can get co-ordination from the workers who are working under them.

8. Direct communication

There is a direct relationship between the superior and the subordinate at all levels of organisation. This will help to know each other intimately This ensures direct communication between the staff members and increases the efficiency of the employees.

9. Flexbility

Adjustments in the organisation can be easily made to suit the changing conditions of the business.

Disadvantage

1. Lack of specialisation

Each person is responsible for the overall exhibition of activities relating to his department alone. He is not expected to be an expert in all aspects of managerial task. He simply gives instructions to his subordinates and does not specialise in certain phases of operation.

2. Over loading

Whenever the scale of operations or size of the business unit increases, this system gives over work to the existing executives. So, they are not in a position to direct and control the efforts of their subordinates properly.

3. Lack of initiative

Since maximum authority is invested with the top management, the departments will lose their initiative to motivate the subordinates.

4. Scope for favouritism

Only one person controls the activities of the department when there is a scope for favouritism and nepotism.

5. Dictatorial

Under line organisation, a subordinate should carry out the instructions and orders which are given by the superior. If not, he will be penalised. This entails in autocratic and aristocratic approach in administration. So, managers will become dictators and not leaders.

6. Limited communication

In normal time, the communication moves downwards but very rarely it moves upwards. The downward communication may be orders, instructions etc. If upward communication is allowed, the management may know the grievances of employees. But upward communication is not preferred by the top management. So it results in limited communication.

7. Unitary administration

Each department's activities are looked after by a single executive who takes all the decisions relating to his department. Hence, the successful functioning of that department depends on his abilities.

8. Subjective approach

The degree of availabilty of authority is more to the superior than to the subordinates. So the superior takes decision without considering the opinions of the subordinates. The subordinate should follow the decisions taken by the superior.

9. Instability

The success of this type of organisation depends mostly on the ability of only few strong men and the failure of this organisation is likely due to the inability of the same persons.

10. Lack of co-ordination 

The co-ordination among the departmental heads is not eacy to achieve. The reason is that the executive of a department does not consider other departments important. This will result in the lack of co-operation and team spirit.

11. Unsuitability for large scale enterprise: This type of line organisation is not suitable for a large-scale enterprise which requires specialisation.

12. The business activities may be divided according to the will of the manager rather than according to any scientific plan.

13. The system has no means of appreciating the efficient worker and punishing of the inefficient worker.

14. Under line organisation, efficient persons are essential to the top management. Practically, it is very difficult to find efficient persons for small organisations.

15. The required time and efforts are insufficient formanagerial planning, research and development and controlling activities of the organisation.

Suitability

1. This type of organisation is suitable to small size business units.

2. Where the activities are of routine nature or machine based.

3. If the business activities are service minded.

4. Where the number of persons working is small.

5. The business operation is simple in nature.

6. A business unit which has straight methods of operations.

Functional Organization 

Under line organisation, a single person is incharge of all the activities of the concerned department. Here, the person incharge finds it difficult to supervise all the activities efficiently. The reason is that the person does not have enough capacity and required training. In order to overcome the limitations of line organisation, F.W. Taylor proposed a new type of organisation called functional organisation.

Under functional organisation, various specialists are selected for various functions performed in an organisation. These specialists will attend to the work which are common to different functions of various departments. Workers, under functional organisation, receive instructions from various specialists. The specialists are working at the supervision level. Thus, workers are accountable not only to one specialist but also to the specialist from whom instructions are received. Taylor advocated this organisation as a point of the scheme of scientific management. Directions of work should be decided by functions and not by mere authority.

The need for functional organisation arises out of:

(i) The complexity of modern and large-scale organisation;

(ii) A desire to use the specialisation in full and;

(iii) To avoid the work-load of line managers with complex problems and decision-making.

Characteristics 

1. The work is divided according to specified functions.

2. Authority is given to a specialist to give orders and instructions in relation to specific function.

3. Functional authority has right and power to give command throughout the line with reference to his specified area.

4. The decision is taken only after making consultations with the functional authority relating to his specialised area.

5. The executives and supervisors discharge the responsibili-ties of functional authority.

F.W. Taylor, the father of scientific management, recommended a functional organisation of activities at the top level. According to Taylor, a foreman should not be burdened with looking after all the activities of his work. Instead, he should be assisted by a number of specialists in solving the problems. The following chart will also help to understand the functional organisation.

1. Route clerk

He is a technical expert. He fixes the route through which each work should travel up to the stage of completion.

2. Instruction card clerk 

He is expected to draft instructions to workers on the basis of the route fixed by the route clerk. These instructions are written on a separate card.

3. Time and cost clerk 

This clerk fixes the standard time for each work and the cost incurred for each work. He gives instructions to the workers to record the time actually spent by the workers and actual cost incurred for completion with standard time and cost.

4. Gang boss

This worker is expected to see the various machines and materials kept ready for workers to perform the work.

5. Speed Boss

He advises the worker to complete the work within the standard time considering the speed of the machines. Besides, the speed boss sees whether each work is completed in time or not.

6. Inspector

The Inspector checks up the quality of each work and certifies it as standard. Actually, the accuracy of work is checked with reference to the specification.

7. Repair boss 

His work starts only after the actual work is performed by the workers. He is concerned with the up-keep of machines and other equipments. It means that the responsibility of the repair boss is the maintenance of machines.

8. Disciplinarian

He implements the rules and regulations of the entire organisation. He is a peacemaker of the organisation. He also checks whether each work is performed in a systematic and perfect manner.

The route clerk, the instructions clerk and time and cost clerk work in the planning department. The gang boss, speed boss, inspector, and repair boss belong in the factory section of the organisation. The disciplinarian is not a staff of any section but he is responsible for the workers' conduct.

Advantages

1. Benefit of specialization

Under the functional organisation, each work is performed by a specialist. It helps to enhance the efficiency of the organisation. Each work is divided among the workers scrupulously.

2. Application of expert knowledge 

Planning function and execution function are divided separately and each function is entrusted to a specialist in the line organisation. So, the specialists can use their expert knowledge in the actual performance of work.

3. Reducing the work load

Each person is expected to look after only one type of work. It reduces the unnecessary work allotted to them. Hence, the quality of work and effective control over the work are achieved.

4. Efficiency

Since each worker is responsible for each work, the workers can concentrate on the work allotted to them. They could assure proficiency in the work. 5. Adequate supervision: Each staff member is incharge of a work. So, he can devote enough time to supervise the workers.

6. Relief to line executives 

Under functional organisation, the instructions are given. by the specialist directly to the actual workers. Hence, the line executive does not have any problems regarding the routine works.

7. Co-operation

A single person could not have full control over the workers in the organisation. So, there is a possibility of promotion among the executives of the organisation. 

8. Mass production

Large-scale production can be achieved with the help of specialization and standardization.

9. Economy

Under functional organisation, each specialist is responsible to the performance of a work. Wastage in the production can be avoided and the expenditure could be considerably reduced.

10. Flexibility

Any change in the organisation can be introduced without any difficulty.

Disadvantages

1. Complex relationship 

A single worker is working under eight specialists under functional organisation. It is very difficult for the worker to be responsible to all persons. This results in conflict between the workers and the specialist.

2. Discipline

It is very difficult to maintain discipline among the workers when a single worker has to serve many masters.

3. Over specialisation

The organisation can reap the advantages of specialisation. But at the same time, there might be overlapping of authority and divided responsibility.

4. Ineffective co-ordination

The extent of authority of a specialist is not correctly defined. It creates problems while getting the co-operation among the specialists. 

5. Speed of action

When the control of a worker is divided among the specialists, the speed of action of the workers may be hampered.

6. Centralisation

Eight specialists are guiding and directing the workers to perform the work. So, the workers do not have any scope for doing the job on their own. This leads to the centralisation of authority.

7. Lack of responsibility

If there is any defect in the performance of work, the management is not in a position to fix the responsibility for it. The reason is that none of the eight specialists is ready to own the responsibility. They may shift the responsibility to any one among themselves for the poor performance of the work.

8. Increasing the overhead expenses

The remuneration of the specialist may be higher than that of the foreman or supervisor.

9. Poor administration

Since many specialists control the same group of workers, no effective administration of workers could be ensured.

Suitability 

It is very suitable to a business unit which is engaged in manufacturing activities. 

Line And Staff Organization 

There are some advantages and disadvantages both in the line organisation and functional organisation. In order to reap the advantages of both line organisation and functional organisation, a new type of organisation is developed, i.e., line and staff organisation. Under line and staff organisation, the disadvantages of line organisation and functional organisation may be avoided to some extent.

The line officers have authority to take decisions and implement them to achieve the objectives of the organisation. The line officers may be assisted by the staff officers while framing the policies and plans and taking decisions.

In the fast developing industrial world, the line officers are not in a position to acquire the technical knowledge. For example, while taking decisions regarding the production, technical knowledge is needed to take correct decisions.

This type of gap may be bridged with the help of staff officers. The staff officers may be experts in a particular field. Then, the line officers can get expert advice from the staff officers before taking the final decisions. According to Allen, "Staff refers to those elements of the organisation which provide advice and service to the line."

The authority flows from top level to the lower level of the organisation through the line officers while the staff officers attached to the various departments advise the departments. The staff officers do not have any authority to control anybody in the organisation. Besides, the staff officers are not in a position to compel the line officers to follow the advice given by them. Each department is headed by a line officer who exercises full authority regarding the planning, implementation and control of workers under him with the help of staff officers. There is no connection between workers and the staff officers of any department. The workers get the instructions only from the line officers. Hence, the unity of command and specialisation are followed in this organisation.

Types of staff

1. Personal staff

Personal staff means a person who assists another person in the performance of a work effectively. Under such circumstances the work of line officers could not be delegated to others. This type of a person is appointed at the top level of organisation. The personal staff officers do not supervise the subordinates of line officers.

2. Specialised staff 

The specialized staff officers render service to the line officers at all levels of the organisation. The specialized staff officers offer advice with some limited provisions. These provisions are imposed by the management.

3. General Staff Assistant 

General staff assistants are a group of persons who are rendering service as advisors to top management in specialised matters. The primary feature of the general staff is that they give advice regarding overall plans and policies of the organisation. But they are not specialized in any area.

Functions Of Staff Officers 

1. The staff officers assist the line officers in the planning of business activity. 

2. The board of directors frame the policies of the business on the basis of recommendations given by the staff officers.

3. The managers can get the advise from the staff officers regarding the selection, 'training', placement and remuneration fixation the personnel.

4. The staff officers give advise regarding the method of improving the product, the technique of reducing the cost of production, increasing the profits of the concern etc.

5. The staff officers prescribe the procedures to be followed by the line officers in the execution of policies and programmes.

6. Staff officers of a department help the manager in the preparation of budget of the department.

7. The staff officers may be called to solve the administrative problems encountered by the line officers in general.

In many organisations, the line officers extend their full co-operation to staff officers and vice-versa. This ensures smooth functioning of the organisation. In certain circumstances, conflicts may arise between the staff officers and line officers. When an officer blames the other officers for some lapse, it affects the smooth functioning of the business.

Arguments Of Line Officers against Staff Officers

1. The staff officers have only theoretical academic knowledge but not practical knowledge.

2. Frequently, the staff officers go beyond their sphere of activity and assume that they have line officers' authority.

3. Much of the advice given by the staff officers is impractical. 

4. Since the staff officers are not responsible for the results they suggest unfruitful ideas.

5. The staff officers unnecessarily increase the paperwork of the line officers. 

6. The staff officers give advice without considering the nature of business as a whole.

7. The ideas of staff officers take into consideraration only the objectives of the departments to which they are attached instead of the broad objectives of the business.

8. Staff officers are very much interested in becoming line officers of the organisation rather than imparting advice to them.

9. Staff officers blame the line officers for the failure of the project but keen on getting credit for the success of the project.

Arguments Of Staff Officers against Line Officers 

1. The line officers completely neglect the advice given by the staff officers. 

2. The line officers hesitate to accept new ideas.

3. The line officers do not follow the advice of staff officers properly.

4. Some line officers simply reject the advice without considering its validity.

5. Some line officers are not ready to ask for any advice from the staff offices. 

6. The line officers dissuade the management from giving authority to staff officers to implement new schemes.

7. The line officers do not exploit the full services of the staff officers.

Solution to the conflict between Line & Staff Officers

The conflict between line officers and staff officers can be settled by the following suggestions.

1. Both line officers and staff officers should clearly understand the nature of relationship prevailing between them.

2. A separate staff member should be appointed to bring about co-operation between the line officers and staff officers.

3. The line officers should be encouraged to use the advice of staff officers. 

4. Only qualified persons should be selected and placed as staff officers.

5. The staff officers should be convinced by the line officers if their advice is not accepted.

6. The responsibility for results could be fixed on both line officers and staff officers. 

7. Some line officers may resist the change, when it is the duty of staff officers to encourage the line officers to participate in the proposed scheme of change.

8. Only experienced persons alone should be promoted as line executives.

9. The staff officers can give full credit to the line officers for the results obtained. 

10. Remove the fear of both line officers and staff officers whether the new ideas or advice would be properly put into use or not.

11. If the favorable results are obtained, the staff officers may be appreciated by the line officers.

12. A special previlege may be given to the line officers to reject or accept the advice given by the staff officers.

Advantages Of Line & Staff Organization 

1. It facilitates the workers to work faster and better.

2. Specialization is attained when the staff officers concentrate on planning function and the line officers concentrate on execution function.

3. It enables the organisation effectively utilise the staff officer's experience and advice.

4. The line officers can take sound decisions with the help of proper advice from the staff officers.

5. A new technology or a new procedure may be introduced in the organisation without any dislocation.

6. A new variety of responsible jobs can be given to skilled workers.

7. The work of line officers would be reduced to some extent if they are relieved of the work of taking decisions.

8. It promotes the efficient functioning of the line officers.

9. The principle of unity of command is followed in the line and staff organisation. Hence, the line officers can maintain discipline among the workers and exercise control over the workers.

10. A very good opportunity is made available to the young persons to get training. 

Disadvantages Of Line And Staff Organization 

1. If the powers of authority pertaining to the line officers and staff officers are not clearly defined, there may arise confusion throughout the organisation.

2. It is very difficult to control the line officers to when they reject the advice of the staff officers.

3. The line officers may reject the advice without assigning any reasons for their action.

4. The staff officers may under estimate the authority of line officers. The reason is that they are superior to the line officers.

5. The staff officers are not involved in the actual implementation of the programme. So, it is not obligatory on their part to give advice with care and caution.

6. The staff officers are not responsible if favorable results are not obtained. 

7. It requires the appointment of staff officers who are specialized in various areas. It increases the administrative expenses of the organisation.

8. There is no authority to the staff officers to compel the line officers to accept and implement the advice given by them.

9. There is a communication gap between line officers and staff officers. It reduces the degree of co-operation between them.

10. The differences of opinion between line officers and staff officers will defeat the very purpose of specialization.

11. The line officers may misunderstand the advice given by the staff officers and proper results cannot be obtained. Sometimes, the staff-officers cannot give unambiguous advice to the line officers.

12. Line officers blame the staff officers for unfavorable results and want to get rewards for fabourable results.

13. Frequently, the line officers want to get advice from the staff officers not only on important matters, but also on ordinary matters. It reduces the effectiveness of control of line officers.

Committee Organization

In the modern business world, some administrative tasks cannot be performed by a single person alone when two or more persons are required to perform the same administrative task collectively. It shapes into a committee of an organisation. A committee is a group of persons to whom certain managerial functions are assigned and from whom some advice or recommendations are expected. According to Hicks, "A committee is a group of people who meet by plan to discuss or make a decision for a particular subject". The duties, responsibilities and authority are fixed by the top management and the committee is accountable to the management.

Terry has defined the committee as "Body of persons elected or appointed to meet on an organised basis for the discussion and dealing of matters brought before it."

Webster's New International Dictionary defines committee as a, "Body of persons appointed or elected to consider, investigate or take action upon and usually report concerning some matter or business, as by a court, legislative body or a number of persons".

Haimahh has defined "a committee as a group of persons either appointed or elected who are to meet for the purpose of considering matters assigned to it".

Types Of Committee

1. Advisory committee (or) problem solving committee

This committee examines the problems which are referred to it. If a committee is requested to solve a given problem, it should give the best solution. The reason is that the committee members have wide knowledge, offer different opinions and suggest approaches to solve a problem. Before solving a problem, the problem is analysed by the committee members from different angles. A solution is found out by the committee after considering the pros and cons of the proposed solutions.

2. Fact-finding committee

This type of committee is formed only for the purpose of collecting information on a particular subject. A detailed report is submitted with recommendations to the management. This is the most common committee formed in any organisation.

3. Action committee (or) executive committee

This committee consists of line officers. This committee can take the decisions and it has power to implement the decisions. The committee is permanent in nature. Board of Directors of a company is the best example for the Action committee..

Functions of a committee

1. Collect the necessary information from different sources and arrange information orderly. the

2. The collected information is critically analysed.

3. Draft a detailed report containing the recommondations for the purpose of implementation.

4. Formulate the standard of performance for the purpose of evaluation of actual performance in future.

5. Take a decision if the committee is requested to do so.

6. Framing the policies of the organisation.

7. The committee can select personnel to carryout the business operations. 8. Directing and controlling the officers at regular intervals to achieve the goals said above.

Advantages of Committe Organization 

1. The committee can take valuable decisions. The committee members can make use of their experience and knowledge while taking decisions.

2. Hasty decisions are avoided by the committee. Normally, the hasty decisions do not give maximum benefit to the organisation. Hasty decisions are not worthy from a long term point of view.

3. The committee members are encouraged to participate in the decision making process. Each committee member can acquire a knowledge of and understand the feelings of the people in other parts of the company. Keeping these in view, the decision is taken by the committee.

4. The committee decisions will certainly be the best one. There is a proverb, "Two heads are better than one".

5. By participating in the decision making process, an officer is persuaded to accept the decision and implement the decision without any delay.

6. Co-ordination between the various departments becomes very easy. The reason is that the committee consists of members from various departments. According to Koontz and O' Donnell, “Committee is a useful device for co-ordinating business planning and the execution of the business policies".

7. The committee members have authority to implement the decisions. If any individual takes a decision, the decision may not be implemented by the committee. The reason is that there is no authority for the committee to implement the decision taken by an individual.

8. If a young person is motivated to participate in the decision making process of a committee, he can get a very good training. It is one way of utilising the opportunity offered to him.

9. Normally the committee consists of specialists from various fields. Then, new ideas may be developed by the committee in the area of production, sales, customer service and the like.

10. Whenever a decision is taken in an organisation, it should be communicated to all the employees. The committee members can disseminate the decision taken by the committee to the employees immediately. It saves a considerable time in communication.

11. The decision taken by the committee reveals the feelings, ideas and thoughts of all the members of the committee. The decision is taken only after having obtained the approval of all the persons who are participating in the decision making.

12. Sometimes, the decision is arrived at after getting the approval of the majority of the members participating in the decision making. So, the committee follows a democratic process in the decision making.

13. Even if a person is opposed to the decision taken, he may accept the decision taken by the committee. He will act so, even though he will not be compelled to accept the decision. It means voluntary acceptance on the part of the concerned persons.

14. Committee members are requested to express their views, ideas and feelings freely. It will minimise the clashes of interests among the employees of the organisation. The discussion may be pertaining to wages, salary, bonus, welfare schemes and the like.

15. The line executives are included in the committee for decision making. It prevents the line executives from feeling that they have not been consulted while taking decisions.

16. If any problem is to be solved by the committee, it can be done by following the principle of division of labour. Each committee member can analyse the problem from various angles at the same time and take fruitful solution.

17. An individual is empowered to take decision and implement it when he has full authority and responsibility. In other words, there is a concentration of authority and responsibility. Concentration of authority and responsibility is avoided in the committee organisation. In this organisation, all the members of the committee have authority and responsibility.

18. Normally, the committee is formed with the interested persons of the organisation.

Disadvantages of Committee Organization

1. Men from various fields are included in the committee. Each member expresses his own ideas and decisions or solutions. It results in delay in taking a decision.

2. It increases the administrative expenses of the organisation. Expenses are incurred whenever the committee is convened for solving a problem or taking a decision.

3. In case, if there is an absence of mutual co-operation, and the members do not have confidence in the ability of the other members of the committee, they fail to work efficiently and the committee is dissolved without any decision being taken.

4. The secrecy of the committee's decision cannot be maintained under committee organisation. The reason is that there are a large number of members in a committee.

5. The responsibility cannot be fixed on any person if the decision does not produce favorable results to the organisation. Each one blames the other for faulty decision making and unfavorable results.

6. Sometimes, the decisions may be taken on the basis of compromise, when the decision does not reflect the view points of the members of the committee.

7. It has been observed that irrelevant matters are at times discussed. The decision should be taken by a committee within a short period of time.

8. In the committee organisation, each member is expected to express his own ideas. It may result in heated argument among the committee members. It does not give any benefit to the organisation.

9. The members of a committee do not use their initiative because of their ignorance, or dominance by the committee members. Thus, the representative character of the decision taken by the committee is not preserved.

10. The committee members who meet frequently, may not be able to devote full attention to their duties.

11. A committee is formed to reap benefits as in a democracy. But, in majority of the cases the committee acts as a puppet of the management.

12. The committee members are not able to develop their own ability or talents individually. Further, it deteriorates the ability of the committee members in various other fields.

Recommendations for efficient functioning of a committee

The following recommendations are given for the successful functioning of a committee type of organisation:

1. Clear objectives 

A committee can function efficiently if the objectives of the organisation are clearly stated. The scope of the function of a committee should be clearly laid down.

2. Size of the committee 

The number of members of a committee should not be too large or too small. Only necessary members should be included in a committee. The members who are working at executive levels should not be members of more than three committees. The ideal number of members of a committee is 6 to 8.

3. Selection of meetings 

The success of a committee depends upon the members of a committee. So, the management should be very careful while selecting a member of a committee. Due weightage should be given to skill, knowledge and experience of the person while selecting a committee member.

4. Role of committee

The authority and responsibility of a committee should be clearly laid down. If so, the members of a committee will act according to the regulations of the committee formed.

5. Role of chairman

Great care should be taken while selecting the chairman at a committee. Sometimes, the chairman of a committee may be selected by the committee members or nominated by the management. The chairman should act as a man to whom every member at the committee could have easy access and he should encourage the members and extend his cooperation to everyone of the members of the committee.

6. Preparation for a meeting

The committee meeting should be periodically convened so as to take prompt decisions and actions to tackle the problems of the management. The flow of work should be maintained by taking correct decisions. It is desirable to collect various essential information necessary to take a decision.

7. Follow-up

The minutes of the meeting should be intimated to all the members of a committee. The follow-up procedure is also carried on for the purpose of ensuring proper implementation of the decisions.

8. Evaluation

The functioning of the committee should be periodically evalued. If any need arises, certain members may be included in or excluded from the committee. The benefits accruing the committee should over balance the expenses incurred for the functioning of committee.

9. Selection of subject matter

Certain kinds of subjects can be dealt with by an individual only. This type of subjects cannot be placed before the committee for discussions. Only complicated matters can be handled by the committee.

Project Organization 

The project organisation idea was developed after the Second World War. This organisation is developed with the object of eliminating the defects of functional organisation. Delay in taking in decisions and lack of co-ordination are some of the defects of functional organisation.

Project organisation is designed with the object of accomplishing a programme or project. The project organisation is dispensed with after the accomplishment of a programme or project. The project organisation is composed of a core of functional departments in addition to its specific programmes or projects. In other words, project organisation consists of important functional departmental heads.

A project organisation is suitable for the accomplishment of a small number of large projects. According to Middleton, "A project organisation can also be the beginning of an organisation cycle. The project may become a long-term or permanent effort that eventually becomes a programme or branch organisation. The latter may, in turn, become separated from the parent organisation and be established as a full fledged product division functionally organised".

Features of Project Organization

1. The success of the project organisation depends upon the co-ordination of activities. 

2. There is a grouping of activities for each project. It leads to the introduction of a new line of authority.

3. The responsibility is fixed for each group with regard to the respective projects and it results in the meaningful control.

Drawbacks of Project Organization

1. The professionals are deputed for the project. But there is no assurance continuous work for the professionals in a project organisation.

2. Under project organisation, there is absence of proper communication and standards for comparing the performance. It reduces the motivation and controls the staff in an organisation.

3. The decision is taken in the project organisation under pressure of the top management. It results in dangerous consequences.

4. The top management does not extend its full co-operation for the effective functioning of the project organisation. Some hindrance may be caused by the top management.

Matrix Organization

There are several departments under Matrix organisation. Each department is assigned with a specified task. The available resources of the organisation can be used by each department along with the co-ordination of other departments in an organisation.

According to Stanley Davis and Paul Lawrence, matrix organisation is, "Any organisation that employs a multiple command structure but also related support mechanisms and an associated organisational culture and behavior pattern". The matrix organisation may be followed where a large number of small projects have to be managed.

Conditions for effective Matrix Organization

The matrix organisation can effectively function if the following conditions are present

1. The principle of scalar chain of command is not followed in the matrix organisation. A project manager should give his report to more than one superior.

2. There should be an agreement among the managers regarding the authority of utilising the available resources. The term resources includes physical resources, financial resources and human resources.

3. A conflict may arise among the managers regarding the utilisation of available resources. There should be a common willingness among the authority holders to face the conflicts with a view to resolving them.

Merits Of Matrix Organization

The merits or advantages of a matrix organisation are discussed below 

1. Achievement of objectives

The matrix organisation reaps the benefits of functional organisation and line and staff organisation. It ensures the achievement of objectives with technical specialisation.

2. Best utilisation of resources

The available resources are used by the managers for the specified project. At the same time, the resources are utilised by the managers with full understanding among them. 

3. Appropriate structure

Matrix organisation is an appropriate structure of an organisation to adopt to the external changes. For example, in order to survive the competition, matrix organisation is used to meet customer demands according to the expectations without affecting the marketing of the existing product.

4. Flexibility

Matrix organisation is a highly flexible organisation. The rules and procedure are framed on the basis of the experience of the organisation.

5. Motivation

If any department is functioning slowly towards the completion of the particular project, Proper motivation is provided to the concerned department. 6. Personal development: Matrix organisation gives an excellent scope for training and development of efficient persons.

Demerits Of Matrix Organization

The following are the demerits or disadvantages of matrix organisation:

1. Complex relationship

The matrix organisation does not follow the principle of scalar chain of command. Here, a single person gives report to more than one superior. It entails in having less opportunity for having rapport with their respective superiors.

2. Struggle for power

A subordinate is controlled by many superiors. It means the power is used over the subordinate by many authority holders. It results in delay in the completion of the project.

3. Excessive, emphasis on group decision-making

The available resources are utilised by the department for taking group decisions. There is no spirit of accomodation and understanding under the matrix organisation. So, there is delay in taking a group decision. It leads to delay in the completion of the project.

4. Arising conflect resoultion

The resolution or the decision is taken under matrix organisation with too much of self analysis of decision makers. The work of decision makers or the managers may be slow in the accomplishment of the project.

5. Heterogeneous

A matrix organisation is created by deputing the staff temporarily. They are skilled professionals of various departments. It is difficult to co-ordinate the work of the skilled staff members when there is a lack of unity of command in an organisation.

Free Form Organization 

This type of organisation is formed whenever a need arises to form an organisation, for achieving a particular object. It will be dissolved after achieving the object of the organisation. In many ways, the Free Form Organisation resembles the project and matrix organisation. It is otherwise called organic or adhoc (ratio) organisation.

The formation of the Free Form Organisation depends upon the external environment of the business. If the business is highly affected by the external environment, the Free Form Organisation will be established.

Decision is taken under Free Form Organisation without following the policies or guidelines which are determined in advance. Normally, the decision is taken in any organisation by following the organisational policies, rules and regulations. These are framed well in advance and followed while taking decisions.

The structure of Free Form Organisation is related to individual expertise used in resolution of the problems at hand. The nature of problems may be changed according to the situations prevailing in the business world. When there is a change of structure of Free Form Organisation, no task is asssigned to it specifically. But tasks are assigned to superiors and subordinates according to their level of experience and competence. So, the authority is available to the persons according to their competence in performing the given task under this organisation.

There is no channel of communication due to the absence of a formal structure in the Free Form Organisation. So, the communication flows in any direction viz., upwards, downwards, and horizontally.