UNIT 4

ORGANISING THE HUMAN RESOURCE

The word ' organization ' has come from the word 'organism' which means a structure of interrelated and interdependent parts .The parts or components of organization consist of men, machines, materials, methods, money, functions , authority and responsibility .The task of organization is to unite or integrate these components effectively for the purpose of attaining the common goal.

Definitions
Some of the important definitions on organization ,given by eminent persons ,are as follows: 1. 'Organising is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives' - Allen. 2. 'Organisation embraces the duties of desingning the departments and the personnel that are to carry work , defining their functions and specifying the relations that are to exist between departments and individuals' - Kimball and Kimball. 3. 'Organisation involves the establishment of an intentional structure of roles through the determination of the activities required to achieve the goals of an enterprise, the grouping of these activities, the assingnment of such groups to a manager, the delegation of authority to carry them out, and provision for co-ordination, horizontally and vertically, in the organisation structure' - Koontz and O'Donnel. 4. 'Organising is the establishing of effective authority relationship among seleted work, persons, and work place in order for the group to work together efficiently' G.R.Terry. 'Organisation means the complete pattern of communications and other relation in a group of human being. This pattern provides to each member of the group much of the information, assumption, goals and attiudes that enter into his decision, and provides him also with a set of stable and comprehensible expentations as to what the other members of the group are doing, and how they wil react to what he says and does' - Simon. 'Organisation is the structural framework of duties and responsibilities requried of personnel in prefroming various functions within the company' - Wheeler. 'Organisation is a harmonious adjustment of specialised parts for the

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accomplishment of some common purpose or proposes' - Haney. 8. 'Organisation is a structural framework within which various efforts are coordinated and related to each other' - Theo Haimann. 'Organisation is a process of welding together a framework of prositions which can be used as a managemant for the most effective pursuits of the goals of an enterprise' James Lundy. 'Organisation is the process of combing the work which individuals or group have to perfrom with facilities necessary for its execution, that the duties so oerfromed provide the best channels for the efficient, systamatic, positive and co-ordinated application of the available efforts' - Olive Sheldon. The above definitions make it clear that organisation concerned with grouping of activities, establishing authority - responsibility relationships between them and creating accountability of the enterprise goal.

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Process Of Organisation
The process or act of organisation involves the following stages : 1. Division of Work -- The entire work of the business enterprise is divided into a number of activities for better perfromance and control. In a manufacturing concern, the variour activities may be divided into certain categorie - production, finance, personnal and marketing. In a trading concern, the activities may be divided into purchase, storage, display, accounting, sales, advertising etc. 2. Grouping of Activities -- As the second step, activites, which are similar in nature and also closely related, will be put under the control of a department. For example, window display, advertising, management of sales staff, sales promotion etc., are the activities to be grouped and brought under the control of the marketing department. Similarly management of working capital, provision of marking purchases, buying machinery etc., are the activities perfromed by the finance department. 3. Assignment of Work -- After the activities have been grouped into departments, the next step is to assign work to every andividual who is employed in a particulur department. Foe example, in the finance department, an individual assign the work of receiving cash, another person may be making disbrusement so on. Likewise, in the marking department, a salesman may be made in charge of one region, another salesman may look after sales in another region and so on. 4. Delegation of Authority -- An employee who as assigned some work, need to be given certain authority to carry out the responsibility. Transfer of authority by a superior to a subordinate is what is known as delegation of authority. For example, a salesman who as been asked to look after sales in a particular region needs to be

given the necessary funds to go over to such a place, stay there and meet the costomers in that place. He needs funds for travelling, stay,food and so on.Without the authority to draw the necessary amount, the salesman will not be able to do this work. 5. Creation of Accountability -- A subordinate to whom the authority has been delegated must be made accountability to his superior for the use of authority and for the work done. Only by creating accountability, the superior can ensure that the subordinate has fullfilled the task assinged to him and has not misused the authority. 6. Defining Relationships -- It means that every subordinate should know who is superior and in the same manner every superior must know the subordinates under them. Every subordinate must carryout the task assinged to him by his superior only and he is accountable to that superior alone.

Importance of Organisation
The benefits or advantages or the importance of organisation may be explained as follows : 1. Vital for Implementing Plans -- Organisation follows planning, implementation of the business plans cannot be posible without the aid of organisation. It is only a through organisation, the resources requried, to accomplish the enterprise goal, are acquried. Organisation assings the work to the superior and the subordinates.Accomplishment of the task by the individuals and departments should results in realisation of the business goal. 2. Specialisation -- the entire work of a manufacturing concern is divided into production, finance, personnal and marketing according to importance. A separate department is created to look after each of these. This result is specialisation. 3. Optimum use of resources -- Organisation gives utmost importance to the optimum utilisation of the enterprise resources, namely, men, machines, materials and money. Right men are recurited for the right job. All efforts are made to ensure that there is no overlapping of activities and duplication of work. Materials are keep at the right place and made available at the right time. Tools and equripment are properly maintained and put to the best possible use. 4. Teamwork -- The work that is done in an organisation is teamwork. The work of each individuals is determined by the work done by others. In other words, a series of opration will have to be carried out to complete the task. A number of persons will be perfroming these operation. It is, therefore, necessary for them to workas a team and with proper understanding. 5. Communication Realationship -- It is not possiblr for an individualsin an

organisation to do his work without getting orders, instructions and advise from others. For example, a subordinate has to work as per the instructions given to him by his superior. Once the work has completed, he has to report to his syperior. If the subordinate needs any clarification, he can either ask his superior or another subordinate. Thus, it becomes clear that organisation encourages communication relationship between the individuals. 6. Creativity -- An organisation provides ample scope for the individuals to exhibits their creative skills. As authority is delegated to every subordinates, he has the freedom to act. He can use all his innovatives ideas in perfroming the task. He will also be suitably rewared for the initiative he has made. Such a reward may be in the form of incentives, greaterdecision-making authority and so on. 7. Co-ordination -- The activities perfromed by different departments are interrelated and also interdepented. For example, production is a deepartments on the availability of finance. Marketing is dependent on productions. It is, therefore, important that a proper link is established between the activities of different departments. Surh a link is what is called co-ordination. 8. Continuity -- Men may come and go;machines may be replaced; materials may be purchased whenever necessary -- all these activities go on in an organisation on a continuous basis. Organisation ensures that there is no disruption of work due to the non availability of men, machines, materials and money.

Organisation Structure
An organisation structure explains the positions and official relationship between the vartions individuals working in an organisation. It helps to understand an organisation better. It provides answers t the following questions: Who is the top-most official in an organisation ? Who are the departments heads ? What are their functions ? Who are the subordinates atsff in each departments ? Etc.

Organisation Chart
Diagrammatic presentation of the orgnaisation structure is what is known as an 'Organisation Chart'. It may show the names, designations and functions of the personnal in an organisation. A specimen of organisation chart is given below:

General Manager
Production manager personal manager

Foreman 1

foreman 2

personal officer (recruitment & training)

personnel officer (records)

Worker 1 worker 2

Worker 1 worker 2

assistant 1 assistant 2

assistant 1 assistant 2

Figure 4,1 - Organisation Chart

Merits of an Organisation Chart

The merits of an organisation chart may be started as follows : 1. It shows the official positions of each individual in an organisation. 2. From the organisation chart, it is possible to make out who are the superiors and subordinates. 3. It gives identity to the personnel in an establishment. 4. It helps am outsider to understand the different desingnation in an organisation.

Drawbacks of an Organisation Chart

The limitations or drawbacks of an organisation chart are given below : 1. An organisation chart can only show the formal or official relationships in a organisation. It cannot depict the informal or personal relationship between the individuals. 2. It may, sometimes, promote ill-feelings among the personnel in an organisation. An individual, who has been indicated in the chart as a subordinate, may not be able to take it in the true spirit. 3. Often, the organisation chart is not updated in accordance with the changes in positions taking place in the organisation from time to time.

Priniciples of Organisation
A sound organisation structure should adhere to the following priniciples : 1. Objective : The various activities perfromed in an organisation should help to attain the goal of the enterprise . The goal of each individual and departement must synchronise with that of the concern. 2. Division of work : The total work of the enterprise should be divided into identifiable function like production, purchases, marketing, finance etc., for better performance and control. This leads to specialisation. 3. Authority and Responsibility : Authority is the official right of an manager. Responsibility is the duty of a subordinate, to whom some work has been assigned, to report to the superior on the work done. 4. Delegation : It means transfer of authority by a superior to his subordinate. A subordinate to whom some work has been given must also be given the necessary authority to carry out the task. Delegation results in a vertical flow of authority from the top level to the lower level of the organisation structure. 5. Balance : Authority and responsibility must always bre equal. If responsibility exceeds authority, the subordinates will not be able to perform the task. On the other hand, if authority exceeds responsibility, there will be misuse of authority. 6. Responsibility is Absolute : Responsibility is never delegated. For the perfromance of his subordinates, a superior is accountable to his own superior. 7. Unity of Command : It means that a subordinate should get orders from one superior only and is accountable to him alone. Dual subordination results in confusion and leads to indispline.

8. Unity of Direction : It means that each group of activities having the same objective must have only one head and one plan. 9. Simplicity : The organisation structure must not be a complicated one. It should have only few levels of authority so that there is free flow of communucation between persons. 10. Flexibilty : The organisation structure should not be rigid. It should be capable of being adjusted accourding to the requried changes in future.

Formal and Informal Organisation

'Formal organisation' is deliberately and consciously created for the accomplishment of the enterprise objectives. It provides for official relationships between the individuals. The communication channel in a formal organisation is also formal or official. 'Informal organisation', on the other hand, is the outcome of personal and social relationship between the individuals in an organisation. It is not consciously or deliberately created. it develops spontanously as a result of interactions between persons. Friendship, identical tastes and preferencees, language affinity, personal admiration etc., are some of the factors that leads to the formation of an informal organisation.In fact, the sales manager also may not take it seriously and that is what informal organisation is all about.

Merits of Informal Organisation

The merits of informal organisation are given below : 1. It facilitates better communication relationships between the members of an organisation. 2. It helps to fulfil the social needs of the personnel in an organisation. 3. It offers greater scope for co-operation in the work place. 4. The informal atmosphere in the work place will motivate the staff better. 5. The scope for conflicts may also become less in view of better personal relationships between the staff.

Demerits of Informal Organisation

Informal organisation suffers from the following drawbacks : 1. It reduse the importance of herarchy, i.e., line of authority.

2. It is possible for anyone to establish contact with anyone else in informal organisation. This may affect the work atmosphere. 3. Superior may lose their inportance. 4. Informal organisation promotes informal communication and as a result rumours may spread. 5. The employees may adope a casual approach to work in an informal atmosphere. This may affect the quality of work. .

Merits of Informal Organisation

The merits of informal organisation are given below : 1. It facilitates better communication relationships between the members of an organisation. 2. It helps to fulfil the social needs of the personnel in an organisation. 3. It offers greater scope for co-operation in the work place. 4. The informal atmosphere in the work place will motivate the staff better. 5. The scope for conflicts may also become less in view of better personal relationships between the staff.

Demerits of Informal Organisation

Informal organisation suffers from the following drawbacks : 1. It reduse the importance of herarchy, i.e., line of authority. 2. It is possible for anyone to establish contact with anyone else in informal organisation. This may affect the work atmosphere. 3. Superior may lose their inportance. 4. Informal organisation promotes informal communication and as a result rumours may spread. 5. The employees may adope a casual approach to work in an informal atmosphere. This may affect the quality of work.

Distinction between Formal and Informal Organisations

The points of distinction between formal and informal organisation have been tabulated below :

Formal Organisation
1. It is consciously and deliberately created. 2. Authority and responsibility are vital for its functioning. friendship, affinity, trust

informal organisation
1. It arise spontaneously. 2. It is only personal factors such as and confidence that are important.

3. Rules and procedures are important. more important. 4. It can be shown on the organisation chart.

3. Personal relationship between individuals is

4. It cannot be shown. 5. There is no flow of authority and

5. Authority flows downwards and responsibility flows upwards. responsibility.

6. It is deliberately created only to attain the enterprise objectives. 6. It is created to fulfil the social needs of an individual. However, it may also contribute to the enterprise goal. 7. Designation and official positions are very important. not important. 8. It is permanent and stable. 7. Designation and official positions are

8. It is unstable.

Theories of Organisation
Many theories have been developed to explain the structure, functioning and performance of organisation and also the behaviour of individuals and groups within an organisation. The important theories are given below: (i) Classical Theory (ii) Neo-Classical Theory (iii) Modern Theory Each of these has been explained below:

Classical Theory
The classical theory has been developed by F.W.Taylor , Henri Fayol, Mooney Reiley and others. The theory explains the concept organisation through the following elements:

(i) Division of labour, (ii) Scalar and functional processes, (iii) Structure, and (iv) Span of control.

Division Theory
It is concerned with dividing the total work into a number of processes, each of which will be performed by different individuals. The benefit of division of labour is that it promotes specialisation. It also leads to a substantial increase in output without the need for additional capital.

Scalar and Functional Processes

The scalar principle explains the superior-subordinate relationship in the organisational hierarchy. The superior at the top communication his dicisions to his immediate subordinate, who is in turn communicates the the same to his subordinate and so on. . The functional process is concerned with the division of the organisational activities and grouping the same on the basis of similarity and compatibility,e.g., production, sales,finance, personnel etc.

Structure
The ofganisation structure is one which is deliberately and consiously created for the sake of attaiining the organisational objectives. It is concerned with the positions and designations of the personnel in an organisation and the tasks they are expected to carry out. The diagrammatic presentation of the structure is what is known as the oragnisation chart. The organisation structure ensures specialisation and effective co-ordination.

Span of Control
The span of control is also known by certain other names like span of supervision, span of manqement and so on. It actually refers to the number of subordinates a managerr can effectively manage. There are divergent views on the number of subordinates a manager can manage. If the manager is asked to supervise the work of too many subofdinates, he cannot do his work effectively. On the other hand, if the number is too low, the manager's potentials cannot be fully utilised. Hence, the need

for determining the correct span . The classical theory explains only a formal organisational set up. It fails to explain the role played by informal groups within a fomal organisation, personality differences etc.

Neo-Classical Theory
This theory is also known as the "Behavioural Theory of Organisation". This theory is identified with the human relations movement started by Elton Mayo and his associates. The neo-classical approach has adopted the basic patterns of the classical theory but it has modified the same in the light of the behavioural patterns of the people in the organisation. Division of work, no doubt, has several advantages. But it may cause monotony and fatigue as the worker is doing the same work again and again. The neo-classical theory, therefore, has accepted the concept of division of labour but has stressed the need for motivation, co-ordination and proper leadership to get rid of the negative aspects. The principle of scalar and functional processes has been modified with an added emphasis on delegation of authority and creation of accountability. As far as the principle of structure is concerned, the neo-classical theory has made an emphasis on the concflicts that may arise between people in an organisation who are performaing different functions. The tussle between the line executives and the staff executives has been shown as an example. To overcome such problems, the neo-classical theory has suggested participation, effective communitcation and recognition of human dignity. In the matter of span of control, the neo-classical theory has not accepted any superior - subordinates ratio. It has only said that in determining the correct span, factors such as the type of subordinates, the nature of work to be supervised etc., must be taken into account. Neo-classical theory is in favour of a flat organisations structure as against the tall structure put forth by the classical theory. A flat structure has a shorter span of control and this provides greater scope for effective communication and motivation.

Important aspects of neo-classical teory

The important aspects of the neo-classical theory may be summed up as follows: 1. An organisation is essentially a social system.

2. There exists an informal organisation within a formal organisational set up. 3. Proper motivation and leadership will be necessary to break monotomy and fatigue. 4. There must be a proper system of delegation of authority and creation of accountability. 5. Conflicts between the personnel in an organisation can be resolved through participation, effective communication and recognition of human dignity. 6. Capabilities of the superiors and subordinates, the nature of the work to be performed etc., shall be considered in determining the correct span of control.

Limitations of Neo-classical Theory

The neo-classical theory too suffers from certain limitations. These are given below: 1. It has been said that the structure of organisation provided by the neo-classical theory would not suit all organisations. 2. It has been further said that the assumption of the theory, that it is possible to evolve a solution that is acceptable to everyone is not true.

Modern Organisation Theory

The modern theory studies organisation as a system. A system is an organised body of independent parts which are interrelated. The parts of a system are called sub-systems. The functioning of every sub-system is vital for the successful functioning of the system as a whole. The various stages involved in studying organisation under the modern theory are: (i) Identifying the strategic parts, (ii) Studying the nature of their mutual dependence, (iii) Studying the processes in the system that link the parts together, and (iv) Analysing the goals sought to be achieved by the system. These have been explained below:

Strategic Parts of the Organisation System and Their Mutual Dependence

The major part of the organisation system are : 1. Individual : The personality traits of an individual, his motives and attitudes are somethings very important in determining what he wants to do for the organisation. 2. Formal Organisation : It refers to the authority-responsibility relationships in an organisation arising out of positions and designiations. It requries every indiduals to perfrom the work assigned. The indidual, by perfroming his duties, demands fulfilment of his expectation. 3. Informal Organisation : there are informal groups within the formal organisaion. Every indiduals belong to same informal group or the other. Such as informal group requries the individual to conform to the behavioural pattern laid down by it. 4. Physical Setting : The physical environment in which the work is done is another important consideration. Steps mach be taken to design the physical environment in tune with the physiological, social and psychological characteristics of individuals.

The process of integration of various organisational parts

The various parts of the organisation system are interrelated. They are linked or integrated by means of the following : 1. Role or Action : An individual perform a variaty of roles and acts in different styles depending on the position held by him in the organisation. The role played by him as a manager of the formal group may tend on the different. this may result in conflict sometimes. Therefore, it become necessary to evolve a method by which the individuals does his job well to satisfy both the groups. 2. Communication : It is a important tool that linjs a various segments of the organisation together. It is necessary for exchanging information among the individuals in an organisation. Communication is also a vital for controlling and co-ordinating activities at varioue levels. 3. Decision- making : It is yet another important mechanism that links the varioue parts of an organisation. A decision is usually made after a proper interaction between the organisational members. Thus, as a linking tool, decision-,making secures consensus, on any matter, among the individuals. 4. Balance : As a linking tool, balance refers to adapting the sub-systems to the need of the system.

Goals
It is difficult to come across an organisation without any specific goal. But it is difficult to define in precise terms the overall organisational goal. Although each individual in an organisation perform his own line of activities, all such activities culminate in attaining the organisational goal.

Evaluation of the Modern Organisation Theory

The modern organisation theory studies the organisation as a whole. It is a marco level study. It is based on the systems approach and therefore. it is adaptive and dynamic. The limitation of this theory is that it is not a single theory, decision theory and so on.

Types of Organisation
Of the varioue types of organisation, the following ones are very propular. (i) Line Organisation, (ii) Line and Staff Organisation, (iii) Functional Organisation, (iv) Committee Organisation, (v) Project Organisation and (vi) Matrix Organisation. Let us now discuss each one of these in detail.

Line Organisation
The line orgnisation, also known as the 'Military Organisation', is the oldest form of organisation. In such an organisation, the superior at the top makes decisions and communicates his decisions an assigns certain work to his subordinate. The subordinate, in turn, makes certain decisions, within the scope of his authority, and assigns certain work to his own subordinate and so on. There is a vertical downward flow of authority and na upward flow of responsibility in such an organisation. As the military is organised in this fashion, the line organisation is given the name military organisation. The concept of line organisation may be explained by means of an diagram;

General Manager

Production Manager

Assistant Production Manager

Foremen

Workers
Fig 4.2 - Line Organisation

Merits of Line Organisation

The following are the merits of line organisation : 1. It is very simple to establish line organisation. 2. There are no complicated relationships in such an organisation. It can easily be understood by anyone. 3. Line organisation clearly defines tha authority and responsibility of each individual. Every person knows clearly whom he should report to and who should report to him. 4. Prompt decision can be taken,as there is unity and command and control. 5. In such an organisation, there is unity of command, i.e., a subordinate gets orders from one superior only. 6. It is economical. It does not employ assistants.

7. It provides scope for better supervision. This ensure greater discipline.

Demerits of Line Organisation

The demerits of line organisation are as follows : 1. It lacks specialisation. The line manager is resposible for both planning and execution of the work assigned to him. In an typical line organisation, the production manager, for example, is responsible not only for attaining the productiontargets but also for quality control, plant maintanence and so on. 2. The line manager are also overburdened with lot of work. The marketing manager, for example, has to not only monitor sales, but also assess the performance of the salesman, take care of advertisment and sales promotion, he may become physically as well as mentally tried. This may also effect his efficiency. 3. In line organisation, there is always downward communication. The subordinates are made to carry out the orders of the superiors. As a results, the subordinate may lose initiative. 4. The line manager enjoy monopoly in the matter of decision-making. It, thus, gives scope for decisions that are detrimantal to the interests of the subordinates. In spite of the limitations mentioned above, line organisation as been found to be good for small concerns that employ a few workers.

Line and Staff Organisation

In this kind of orgnisation, staff expertd, who are specialists in specfic areas, assist the line personnel. These experts do not have the powers to command any subordinate other than those who are under their direct control. They canonly advise the line personnel on certain matters. The also do not have the authority to take decision on vital issues. It s for line manager to advise whether to accept the suggestions of the latter are over burdened with work. The following diagram explain the concept of line and staff organisation :

General Manager

Manager -

Manager Manager-Finance Personnel Production

Plant Superior

Service Engineer Office-Spares

Foreman 1 Foreman 3

Foreman 2

Workers

Fig 4.3 - Line and Staff Organisation

Merits of Line and Staff Organisation

1. The staff experts provide supports for line personnel. This enables the line executives to perform their duties must more efficiently. 2. The line executives also get relief from work.The staff experts perform certain activities which, in there absence, would be performed only by the line executives. For example, in the absence of the purchase manager and the quality control manager, the task of buying raw materials and quality control wolud only fall on the production manager.

3. The suggestions, given by the staff experts, enable the line executives to take better decisions. 4. The sharing of work by the staff experts also helps to avoid delay in performing the entire work. 5. As every executives performs only a specific task, he is able to do it with full concentration. He is also able to work to his fullest capacity. This results in overall efficiency.

Demerits of Line and Staff Organisation

1. Conflicts often arise between the line and staff executives.

2. The staff experts do not have authority to make decisions. They can only advise. Such a position without authority makes them ineffective. 3. It is difficult to explain in precise teams the pattern of authority relationships between the line and staff executives. This results in confusion. 4. The line and staff pattarn of organisation would enhance the cost of operation.

To conclude it may be said that line and staff organisation, with all its limitations, is suitable for a concernthat is expanding.

Functional Organisation
Such a pattern of organisation is suitable for large scale establishments. In a functional organisation, there will be separate departments to look after different lines of activities. The purchase departent, for example, will take care of all matters pertaining to purchase. The production department will look after all production related activities. Sale, advertising, control of salesman etc., will be taken care of marketing de[artment. Provision of funds for short-team as well as long-team operation will be looked after by the finance department. Recruitment of staff, selection, placement, salary administration, training, etc., are the activities performed by the personnel dapertment. Each department will be headed by a manager and will work according to hierarchy. The concept of functional organisation may be explained by means of a simple diagram :

Board of Directors

Managing Director

Procduction Personnel manager Manager

Marketing Manager

Foreman 2 OfficerTraining

Foreman 1 OfficerSalary

Sales Officer 1

Sales Officer 2

Workers Assistants

Sales Representatives

Fig 4.4 - Functional Organisation

Adventages of functional Organisation

1. It promotes Specialisation. Each Department specialise in a particular line of work. 2. Each functional heads lloks after only a specific activity. Thus, there is no over burdening of key executives. 3. Better contorl can be execised over the various activities of the cercern in view of the presence of so many key executives. 4. There will be maximum efficiency as each individual concentrates on a particular task. 5. Specialisation and standardisation will result in mass production.

Drawbacks of Functional Organisation

Functional organisation, however, suffers from the following drawbacks : 1. Functional organisation is unwieldy in view of the presence of a number of departments and divisions. 2. It is always difficult to secure proper co-ordination among the different departments and individuals. 3. Any major decision requries the participation of different functional heads. This may leads to delay in arriving at a decision. 4. Functional organisation is also expensive to adope. The creation of the number of deoartments and devisions and also the employement of many executives and subordinates staff will involve heavy expanditure.

Committee Orgnisation
A committee is a group of persons entrusted with certain tasks. The committee members are expected to discuss the problem under considaration in detail and come out with a solution. The Borad of Directors of a company or a Trade Union of workers may be cited as an example of a committee. A number of committee may be created in certarn depending upon the requirement. A review committee, For eg, may be consituted to review the progress of work at the various levels.

Types of Committees
Committees are useally classified into the following steps : 1. Standing or Permanent Committee, 2. Temporary Committee, 3. Executive Committee, 4. Advisory Committee, 5. Formal Committee, and 6. Informal Committee. Let us now see about each one.

Standing and Permanent Committee

Such a committee is never dissovle. Although there may be changes in membership, the committee remains always. The Borad of Directors of a Company is an example.

Temporary Committee
A temporary committee is one that is created for a specific purpose. as soon as the purpose is accompalished, the committee stand dissolved. For example, if wages revision is due for the workers, the management may consitute a committee to study the various aspects of wage revision and make a report to it. As soon the committee submits its reports, it will stand dissolved.

Executive Committee
An executive committee is one that has powers to make important decisions for the enterprise.The borad of directors of the company has such decisive powers.

Adversory Committee
An adversory committee can only make suggestions. It does not have powers to make decisions.

Formal Committee
A formal committeeis one that is consititudes as per the rules and policies of the organisation. It has hirearchy. It functions acording to the line of authority.

Informal Committee
An informal committee is one that is not consitituted as per the rules and policies of the organisation. Such a committee is the outcome of infoemal meetings of the workers to discuss there work-related problems.

Evalvation of Committee - Their Advantages and Disadvantages

The following are the advantages of the committee : 1. A committe provides the scope for group judgement. Every member of the committe can express there views whenever a problem is discussed. The decision that is finally taken wil certainly reflect the views and suggestions of all the members. Such an advantage is not available an an individual decision-making situation. 2. The committee also secures proper co-ordination among the individuals and departments. When the members of the committe meet and discuss a

common problem, each mamber puts forth his views that are heard by others. It is, therefore, possible for an individual to understand the problem of another. 3. The committee members feels motivated when they participate in an discussions. As a results, the implement the decision with the same level of enthusiasm with which they made it. 4. By acommodating diverse interest groups, the committee functions as a democatic rganisation. For example, a comittee constituted in a business establishment may have representatives of both the management and the workers. 5. Problems that cannot be sloved by an individual will have to be referred to a committee. As a committee has intellecturals drawn fron different spheres, it will able to find the solution easily. 6. The committe is also use as a tool to postpone decision on certain sensitive issues. The drawbacks of the committee are as follows : 1. Constituting a committee is a expensive affair. the committe members have to paid remuneration for they work. They have to paid dearness allowance and travelling allowance each time a meeting is organised. 2. The committee members take more time on discussion and delibarations and as a result the decision gets delayed. The delay, in many cases, may defeat the very purpose for which the committe has been constituted. 3. To reach a consensus among the members is often a difficult task. With a view of satisfying every member, a compromise decision may be made, sometimes, at the last minutes. 4. There may be also a tendency on the part of some influential members in the committee to thrust their views on others. 5. There is no fixed responsibility on any member of the committee for the outcome of its decision. It the decision turns out to be failure, no individuals will come forward to take the blame. 6. The committee may often be constitituted withoput the intension to provide any kind of a relief to the aggrieved persons. The idea is to avoid decision on an important issue. It is for this reason that the committe is seen as a group of unfits, unwillingly, engaged to do the unnecessary.

How to make a committee effective ?

The following measures may be taken to make committe more effective : 1. The committe must have a capable leader. The chairman of the committe must be an intellenctual. He must be able to conduct the proceedings well. He must be good in the art of securing effective co-ordination among the members. 2. The committe must not have to many members. For the committe to do its job effectively, the number of member should be restricted to five or six. 3. While selecting the members, due weightage must be given to the individuals ability, commitment to work, honesty and integrity. 4. The agenda for the meeting should be prepared well in advance and sent to every member. This would enable him to equip himself better. 5. The proceedings of the meeting should be carefully recorded in the minute book. 6. Every member of the committee should be informed of the action taken on the recommendation of the committee. 7. The committee expenses must be subjected to proper audit. This would ensure that there is no misuse of funds.

Project Organisation
The concept of the project organisation became popular particularly after world war II. It may be successfully adopted if it is necessry to manage a small number of large project. each project team has specialists in different flelds. The project manager would co-ordinate the activities of tyhe team members. The specimen of the project organisation is given below :

General Manager

Manager Project A Manager Project B

Engineering R&D Quality Control Accounts

Quality Control

Accounts

Engineering

R&D

Fig 4.5 - Project Organisation

Advantages of Project Organisation

1. It can be design for suit individual projects. 2. It make use of specialised Knowledge and skill wherever requried. 3. It fixed responsibility on individuals on the work done by them.

Drawbacks of Project Organisation

1. The project manager may have a tough time dealing with specialists from different fields. 2. Evaluation of proformance of the various specialist also poses problems for the project manager as he may not be well versed in engineering, R & D, accounts and so on. 3. Decision-making is also difficult for the project manager who may be pressuried by the specialists. 4. The time within with the project has to be completed will put pressure on every individuals.

Matrix Organisation
Matrix organisation is considered suitable for a large number of small project will have to managed. A ,atrix organisation is also known as 'Multiple Command System' as it has two chains of command i.e., the flow of authority is vertical as well as horozontal. Separate departments are established for each specified task. But these departments have to share the resources with the rest of the organisation and cannot claim any excusive right. The specimen of a matrix organisation is given below :

General Manager

Manager Manager Production Account

Manager- R&D

ManagerPersonnel

Manager Personnel Project A Group

Production Accounts Group Group

R&D Group

Manager Personnel Project B Group

Production Accounts Group Group

R&D Group

Fig 4.6 - Matrix Organisation

Advantages of Matrix Organisation

The plus-point of matrix organisation may be stated as follows : 1. It offers the benefits of both functional organisation as well as technical specialisation. 2. It can be adoped for suit individual project. 3. It offer greater motivation for the personnel engaged in the project and they show keen interest in its successful completion. 4. It also promotes communication relationships between the various personnel associated with a project.

Drawbacks of Matrix Organisation

1. It goes againts the priniciple of unity of command as each individual gets orders from both the functional and the project managers. 2. Dual command may results in confusion.

3. Quick decision may not be possible in such a pattern of organisation in view of the conplex relationship that exists. 4. It also gives scope for conflicts among the personnel and as a result, the execution of the project may get delayed.