Types of Organisation: Full Overview

Introduction

The division of labour and management span concepts are used to create the different types of organisations. The expertise and competency of the organization’s officials determine the organization’s success. To obtain the intended outcomes, it is necessary to draw a line of authority among the individuals that work in an organisation.

Furthermore, it entails assigning roles to officers and integrating the activity of all officers to achieve the desired goals. “The difficulty of an organisation is to choose and combine the efforts of personnel with suitable traits in order to generate the desired outcomes,” say Kimball and Kimball.

Internal organisation is often determined by the kind, scope, and size of the firm. The following frequent kinds of organisations have a position in the internal organisational structure.

1. Organizations may be classified as Line, Military, or Scalar.
2. Organizational structure that is functional.
3. Organization of lines and personnel.
4. The formation of a committee
5. Project management.
6. Matrix management.
7. Organization that is unstructured.

The following is a basic description of the many sorts of organisations:

1. Line Organisation

Line organisation is the most basic and oldest sort of organisation used in businesses. Each department in a line organisation is usually a self-contained entity. A single individual will be in charge of the department’s operations, and he will have complete authority over it.

Certain powers will be granted to line executives, allowing them to make judgments as needed. He informs his subordinates of his choice and commands. Subordinates may then transmit them to people who are directly under them.

Such decision-making power should be delegated from the top to the bottom. Top management executives have more decision-making power than lower-level executives. It’s worth noting that in this sort of company, an executive is separate from other executives at the same level (say departmental heads).

To put it another way, same-level executives do not issue or receive instructions from one another. They do, however, take commands from their immediate superior (general manager) and pass them on to their subordinates.

As a result, it is well understood that the general manager is accountable for all department heads. The board of directors, in turn, is answerable to the general manager. The shareholders, who are the owners, keep the board of directors accountable.

The army follows a similar trend in terms of organisation. As a result, it is known as a military organisation. The chain of authority in this sort of organisation runs vertically from top to bottom. As a result, it’s known as line organisation.

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Characteristics of Line Organisation

1. It is made up of vertically direct linkages.
2. From the top to the bottom, authority flows.
3. Department chiefs have complete power over their departments.
4. Each member is aware of who he should receive commands from and who he should give orders to.
5. This method is incredibly simple to use.
6. A senior member commands his subordinates directly.
7. A direct link exists between bosses and subordinates.
8. Each member understands who is accountable for the achievement of the organization’s goals.
9. Within the limits of his power, the superior makes choices.

Benefits of Line Organisation

1. Simplicity: Creating a line organisation is fairly simple. Its employees have no trouble comprehending concepts and relationships with others. Ideals don’t have any complications.
2. Division of authority and responsibility: Each individual has a clear understanding of his or her sphere of authority. As a result, he understands who he is accountable to when it comes to completing the task. After his responsibility had been set, no one could share it.
3. Uniformity of command: Uniformity of command states that an individual may only receive commands from one superior. It signifies that a subordinate has just one superior and receives only commands from him.
4. Quick action: There is an appropriate distribution of power and responsibility, as well as unity of command, in line organisation. As a result, a person may make quick judgments and carry out plans.
5. Discipline: Authority is delegated from the top to the bottom. Loyalty and discipline among the organization’s personnel may be maintained with relative ease.
6. Line organisation is cost-effective since it is a single form of organisation.
7. Coordination: The business activities are divided into categories based on their purpose. Each department is in charge of a certain function, allowing department leaders to coordinate with their subordinates.
8. At all levels of the organisation, there is a direct interaction between the superior and the subordinate. This will assist in getting to know each other better. This will guarantee direct communication between staff members and boost employee efficiency.
9. Flexibility: Changes in the organisation may be made quickly to meet changing business circumstances.

Disadvantages of Line Organisation

1. Lack of specialisation: Each individual is solely accountable for the general display of activity related to his or her department. He won’t be expected to be an expert in every facet of management. He just delivers orders to his subordinates and is not an expert in all parts of the operation.
2. Overloading: As the scope of operations or the size of the business unit grows, this mechanism transfers work to current executives. As a result, they are unable to adequately lead and manage the efforts of their subordinates.
3. Lack of initiative: Because top management has the most power, departments will lack the drive to encourage their employees.
4. When there is the potential for favouritism and nepotism, only one person supervises the actions of the department.
5. Dictatorial: In a line organisation, a subordinate is expected to follow out the superior’s instructions and commands. He will be punished if he does not comply. This necessitates an authoritarian and aristocratic style to governance. As a result, instead of becoming leaders, managers will become tyrants.
6. Limited communication: Communication usually travels downhill in normal time, but it seldom flows upwards. Orders, directions, and other forms of downward communication may be used. If upward communication is permitted, management may be aware of employee complaints. Top management, on the other hand, dislikes upward communication. As a consequence, communication is restricted.
7. Unitary administration: Each department’s operations are overseen by a single executive who is responsible for all of his department’s decisions. As a result, his talents are critical to the department’s success.
8. Subjective perspective: The availability of authority is greater for superiors than for subordinates. As a result, the superior makes decisions without consulting the subordinates. The superior’s judgments should be followed by the subordinate.
9. Instability: The success of this sort of organisation is largely dependent on the skill of a few powerful men, and its downfall is almost certainly due to the incapacity of the same individuals.
10. Lack of coordination: It is difficult to develop coordination among department leaders. The reason for this is because the executive of one department does not value the importance of other departments. As a consequence, there will be a lack of cooperation and team spirit.
11. Unsuitability for a large-scale company that demands specialisation: This sort of line organisation is not appropriate for a large-scale operation that requires specialisation.
12. Rather of following a scientific strategy, company operations may be separated according to the manager’s wishes.
13. The system has no way of rewarding the productive worker and penalising the ineffective one.
14. Effective people are critical to top management in a line organisation. In practise, finding effective people for small businesses is quite challenging. 15. Managerial planning, research and development, and regulating operations of the organisation take more time and effort than is available.

Suitability

1. Small company units will benefit from this sort of organisation.
2. Where the actions are regular or mechanical in character.
3. If the company’s actions are centred on customer service.
4. Where a tiny number of people are employed.
5. The essence of the company activity is straightforward.
6. A company unit with well-defined operating procedures.

II. Functional Organisation

A single person is in charge of all operations of the respective department in a line organisation. The person in charge here finds it difficult to effectively manage all of the operations. The reason for this is because the individual lacks the necessary ability and training. To get around the drawbacks of line organisation, F.W. Taylor coined the term “functional organisation” to describe a new style of organisation.

Different experts are chosen for various duties done in an organisation under functional organisation. These experts will take care of tasks that are similar to many distinct departments’ activities. Workers get guidance from a variety of professionals via functional organisation.

The professionals are in charge of the oversight. As a result, employees are responsible not just to one expert, but also to the specialist who gives them instructions. This organisation, according to Taylor, is an important part of the scientific management plan. Work should be directed by functions rather than by simple authority.

The necessity for functional organisation stems from the following factors:

I The contemporary and large-scale organization’s complexity;

(ii) a desire to fully use the specialisation; and

(iii) To relieve line managers of the burden of complicated challenges and decision-making.

Characteristics of Functional Organisation

1. The task is broken down into several functions.
2. A expert is granted authority to provide commands and instructions related to a certain role.
3. With regard to his designated region, the functional authority has the right and ability to issue commands along the line.
4. Only after consulting with the functional authorities in his specialised field does he make a decision.
5. Executives and supervisors are in charge of carrying out functional authority responsibilities.

F.W. Taylor, the pioneer of scientific management, advocated for a top-down organisation of operations. According to Taylor, a foreman should not be responsible for all of his work’s actions. Instead, he should enlist the help of a team of experts to solve the issues. The diagram below will also assist you in comprehending the functional organisation.

1. He is a technological specialist, according to the route clerk. He determines the path that each job must take to reach the completion stage.
2. On the basis of the route set by the route clerk, he is supposed to produce instructions to employees on instruction cards. On a separate card, these instructions are provided.
3. Time and cost clerk: This clerk establishes the normal time for each job as well as the cost incurred. He instructs the employees to keep track of the time they spend on the job and the real costs they incur in comparison to the normal time and cost.
4. The gang master expects this worker to inspect the numerous equipment and supplies that have been set aside for employees to complete the task.
5. Pace Boss: Given the speed of the equipment, he instructs the worker to do the job in the allotted time. Furthermore, the speed boss monitors whether or not each task is accomplished on time.
6. Inspector: The Inspector inspects each piece of work for quality and certifies it as standard. In reality, the correctness of the job is tested against the specification.
7. Repair boss: His task begins only after the employees have completed the real work. He is responsible for the maintenance of machinery and other equipment. It signifies that the maintenance of machinery is the duty of the repair supervisor.
8. Disciplinarian: He is in charge of enforcing the organization’s rules and regulations. He is the organization’s peacemaker. He also double-checks that each task is completed in a methodical and flawless way.

The planning section employs route clerks, directions clerks, and time and cost clerks. The manufacturing part of the organisation houses the gang leader, speed boss, inspector, and repair boss. The disciplinarian is not a member of any section’s staff, but he is in charge of the employees’ behaviour.

Benefits / Advantages of Functional Organisation

1. The benefit of specialisation is that each task is carried out by an expert in the functional organisation. It contributes to the organization’s efficiency. Each task is meticulously distributed among the personnel.
2. Application of expert knowledge: The planning and execution functions are separated, and each function is delegated to a line organisation specialist. As a result, the professionals may apply their technical knowledge to practical work.
3. Workload reduction: Each individual is responsible for just one sort of job. It cuts down on the amount of work they have to do that isn’t required. As a result, the job is of high quality, and the work is under effective management.
4. Efficiency: Because each person is accountable for their own job, they may focus on the tasks that have been assigned to them. They could ensure that the job was completed to a high standard. 5. Adequate supervision: Each employee is in charge of a certain task. As a result, he will be able to dedicate sufficient time to overseeing the staff.
5. Line executives are relieved since the instructions are supplied via functional organisation. straight from the professional to the real workforce As a result, the line executive has no issues with the usual tasks.
6. Collaboration: A single individual could not have complete control over the organization’s employees. As a result, among the organization’s executives, there is the chance of advancement.
7. Mass production: With the aid of specialisation and standardisation, large-scale manufacturing may be realised.
8. Economy: In a functional organisation, each expert is accountable for completing a task. Wastage in the manufacturing process may be eliminated, and costs can be significantly lowered.
9. Flexibility: Any change in the organisation may be implemented with ease.

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Disadvantages of Functional Organisation

1. Under the functional organisation, a single worker works under the supervision of eight experts. It is quite difficult for a worker to be accountable to everyone. As a consequence, the employees and the expert are at odds.
2. When a single worker is required to serve many masters, maintaining discipline among the employees is very difficult.
3. Overspecialization: The organisation may benefit from specialisation, but there may be overlapping authority and split responsibilities as a result.
4. Ineffective coordination: The scope of a specialist’s authority is not clearly defined. It causes issues when attempting to elicit cooperation from professionals.
5. Speed of action: When a worker’s control is shared among experts, the employees’ speed of action may be restricted.
6. Centralization: Eight professionals supervise and direct the work of the workforce. As a result, the personnel are unable to complete the task on their own. This results in the concentration of power.
7. Lack of accountability: If there is a problem with the work, the management is unable to assign blame. The reason for this is because none of the eight experts are prepared to take on the job. They may assign blame for the work’s poor performance to anybody among them.
8. Increasing overhead costs: A specialist’s compensation may be more than that of a foreman or supervisor.
9. Poor management: Because several experts are in charge of the same group of employees, there is no way to assure good worker management.

Suitability

It’s ideal for businesses that do a lot of manufacturing.

III. Line & Staff Organisation

In both the line and functional organisation, there are certain benefits and downsides. A new style of organisation, called line and staff organisation, is being created in order to gain the benefits of both line and functional organisation. The problems of line and functional organisation may be mitigated to some degree using line and staff organisation.

Line officers have the power to make choices and put them into action in order to fulfil the organization’s goals. While framing policies and strategies and making judgments, line officers may be aided by staff officers.

Line officers are unable to gain technical expertise in today’s rapidly evolving industrial environment. For example, in order to make the best judgments about manufacturing, technical expertise is required.

With the assistance of staff officers, this sort of gap may be filled. Staff officers might be professionals in a certain subject. Before making final judgments, the line officers might seek professional opinion from the staff officers. “Staff refers to those parts of the organisation that give guidance and assistance to the line,” says Allen.

The line officers transmit power from the top to the bottom of the organisation, while the staff officers assigned to the different departments advise the departments. The staff officers have no power over anybody else in the organisation. Furthermore, staff officers do not have the authority to force line officers to accept their advise.

Each department is led by a line officer who, with the assistance of staff officers, has complete power over the planning, implementation, and supervision of personnel under his command. There is no link between employees and any department’s staff officials. The line officers are the sole ones who give orders to the employees. As a result, this organisation adheres to the principles of command unity and specialisation.

Types of Staff

Personal staff: A person who efficiently aids another person in the execution of a task is referred to as personal staff. Line officers could not transfer their responsibilities in such a situation. This individual is appointed at the highest level of an organisation. Line officers’ subordinates are not supervised by personal staff officers.

Specialist staff: At all levels of the organisation, specialised staff officers provide support to line officers. With certain limitations, the expert staff officers provide advise. The management has set these conditions.

General Staff Assistants: General staff assistants are a group of people that serve as consultants to high management on a variety of topics. The major function of the general staff is to provide recommendations on the organization’s overarching strategies and policies. They are not, however, experts in any field.

Functions of Staff

1. The staff officers support the line officers in business activity planning.
2. The board of directors formulates the company’s policy based on proposals from the staff officers.
3. The managers may seek advice from the staff officers on personnel selection, ‘training,’ placement, and compensation fixation.
4. The staff officers provide advice on how to improve the product, how to reduce manufacturing costs, how to increase the company’s revenues, and so on.
5. The line officers must follow the processes prescribed by the staff officers while implementing policies and programmes.
6. A department’s staff officers assist the manager in preparing the department’s budget.
7. Staff officers may be relied upon to resolve administrative issues that line officers face in general.

Line officers in many organisations provide complete cooperation to staff officers and vice versa. This guarantees the organization’s seamless operation. Conflicts between staff officers and line police may emerge under specific situations. The smooth operation of the company is harmed when one officer blames other police for a lapse.

Arguments of Line Officers against Staff Officers

1. Staff officers only have theoretical academic knowledge and no practical experience.
2. Staff officers often claim power over line officers outside their field of responsibility.
3. The staff officers’ advice is often impracticable.
4. Staff officers promote unproductive ideas since they are not accountable for the outcomes.
5. Line officers’ paperwork is unduly increased by staff officers.
6. Staff officers provide advise without taking into account the nature of the firm as a whole.
7. Staff officers’ thoughts are based only on the goals of the departments to which they are assigned, rather than the overall goals of the company.
8. Rather than giving advise, staff officers are more interested in becoming line officers of the organisation.
9. Staff officers blame line officers for the project’s failure, but they are eager to take credit for its success.

Arguments of Staff Officers against Line Officers

1. The advise supplied by the staff officers is entirely ignored by the line officers.
2. New ideas are met with scepticism by the line officers.
3. Line officers do not always heed the advise of staff officers.
4. Some line officers just dismiss the advise without giving it a second thought.
5. Some line officers are hesitant to seek help from the staff offices.
6. The line officers try to persuade management not to give staff officials power to execute new initiatives.
7. Line officers do not fully use the services of staff officers.

Solution to the Conflict between Line Officers and Staff Officers

The following approaches may help to resolve the issue between line police and staff officers.

1. Both line police and staff officers should be aware of the nature of their working relationship.
2. To promote cooperation between line officers and staff officers, a separate staff member should be established.
3. Staff officers should be encouraged to consult with line officers.
4. Only competent individuals should be chosen and assigned to positions as staff officers.
5. If the line officers do not accept the staff officers’ suggestions, the line officers must persuade them.
6. Both line cops and staff officers might be held accountable for the outcomes.
7. While it is the responsibility of staff officers to urge line officers to engage in the planned scheme of change, certain line officers may reject it.
8. Only experienced executives should be promoted to line executive positions.
9. For the outcomes produced, the staff officers may give entire credit to the line officers.
10. Remove the uncertainty among line and staff officers about whether new ideas or suggestions will be appropriately implemented.
11. The line officers may appreciate the staff officers if favourable outcomes are accomplished.
12. The line officers may be granted a specific privilege to reject or accept the advise of the staff officers.

Benefits Of Line & Staff Organisation

• It allows people to operate more efficiently and effectively.
• When staff officers focus on the planning role and line officers focus on the implementation function, specialisation is achieved.
• It allows the organisation to make good use of the staff officer’s knowledge and guidance.
• With the support of competent counsel from staff officers, line officers may make smart judgments.
• Without causing any disruption, a new technology or technique may be implemented into the organisation.
• If line officers are freed of the responsibility of making decisions, their workload will be lessened to some degree.
• Skilled personnel might be assigned to a new set of responsibilities.
• It encourages line officers to work more efficiently.
• In the line and staff organisation, the idea of unity of command is observed. As a result, the line officers can maintain worker discipline and exert control over them.
• Young people are given an excellent chance to get training.

Disadvantages of Line & staff Organisation

• If the line officers’ and staff officers’ powers of responsibility are not clearly defined, there may be misunderstanding across the organisation.
• When line officers refuse to follow the recommendations of staff officers, it is very difficult to maintain control.
• The line officers have the option of rejecting the recommendation without providing any explanation.
• Line officers’ power may be underestimated by staff officers. They are superior to the line officers for this reason.
• The staff officers are not engaged in the program’s actual execution. As a result, they are not obligated to provide counsel with care and caution.
• It necessitates the employment of specialised staff officers in numerous fields. It raises the organization’s administrative costs.
• If favourable outcomes are not produced, the staff officers are not liable.
• Staff officers do not have the ability to force line officers to accept and follow their recommendations.
• Between line cops and staff officers, there is a communication gap. It has a negative impact on their ability to work together.
• Line officers and staff officers will have divergent viewpoints, defeating the purpose of specialisation.
• Line officers may misunderstand the advice offered by staff officers, resulting in ineffective consequences. Staff officers are often unable to provide clear recommendations to line officers.
• Line officers criticise staff officers for poor performance and want to be rewarded for excellent achievements.
• Line officers often seek assistance from staff officers not just on major subjects, but also on mundane issues. It weakens the efficacy of line officers’ control.

IV. COMMITTEE ORGANISATION

When two or more people are needed to accomplish the same administrative activity collectively in today’s corporate environment, certain administrative activities cannot be completed by a single person alone. It takes the form of an organization’s committee.

A committee is a group of people to whom certain administrative responsibilities have been delegated and who are expected to provide advice or suggestions. “A committee,” according to Hicks, “is a group of persons who meet on a regular basis to debate or make a decision on a certain issue.”

The top management determines the committee’s tasks, responsibilities, and authority, and the committee is answerable to the management.

The committee, according to Terry, is a “body of individuals chosen or appointed to meet on a regular basis for the purpose of discussing and acting with topics brought before it.”

“Body of individuals assigned or chosen to evaluate, investigate, take action on, and typically report about some topic or business, as by a court, legislative body, or a number of persons,” according to Webster’s New International Dictionary.

“A committee,” according to Haimahh, is “a group of individuals nominated or elected to convene for the purpose of evaluating items allocated to it.”

Types of Committee

1.Advisory committee (or problem-solving committee): This body investigates the issues that have been brought to its attention.

When a committee is asked to address an issue, it should come up with the best answer. The reason for this is because the committee members have a broad range of expertise, give diverse perspectives, and propose solutions to problems.

Before fixing an issue, members of the committee examine it from many perspectives. The committee comes up with a solution after weighing the benefits and drawbacks of the various options.

2.Fact Finding Committee: A fact-finding committee is one that is constituted only for the purpose of gathering information on a certain topic. The management receives a full report with suggestions. In every organisation, this is the most typical committee to organise.

3.Action Committee or Exceutive Committee: This body, sometimes known as the action committee or executive committee, is made up of line officers. This committee has the authority to make decisions and to carry them out. The committee will be in place indefinitely. The finest example of an Action Committee is a company’s Board of Directors.

Functions of a Committee

1. Collect the relevant information from various sources and organise it in a logical manner.
2. The information gathered is analysed attentively.
3. Prepare a thorough report that includes the recommendations for implementation.
4. Create a performance standard that will be used to evaluate real performance in the future.
5. If the committee is asked to make a decision, do so.

6. Organizing the organization’s policies.
7. Personnel to carry out company activities might be chosen by the committee.
8. Regularly directing and controlling the officers in order to fulfil the above-mentioned objectives.

Advantages of Committee Organisation

• The committee has the ability to make important decisions. When making judgments, committee members might draw on their expertise and knowledge.
• The committee avoids making hasty conclusions. In most cases, hasty judgments do not help the organisation to the greatest extent possible. From a long-term perspective, hasty judgments are unworthy.
• Members of the committee are urged to take part in the decision-making process. Each committee member may learn about and comprehend the sentiments of individuals in various sectors of the organisation. The committee makes its conclusion in light of these considerations.
• The judgments made by the committee will undoubtedly be the finest. “Two heads are better than one,” says an adage.
• An officer is encouraged to accept and execute the conclusion without delay after participating in the decision-making process.
• Because the committee comprises of members from multiple departments, coordination across departments becomes quite simple. According to Koontz and O’Donnell, “Committee is a good technique for co-ordinating company planning and the implementation of business policies.”
• The members of the committee have the ability to carry out the decisions. If an individual makes a decision, the committee may not be able to carry it out. The reason for this is because the committee does not have the power to carry out an individual’s choice.
• If a young person is motivated to engage in a committee’s decision-making process, he may get excellent instruction. It’s one way he can make the most of the chance he’s been given.
• The committee is usually made up of experts from diverse professions. The committee may then come up with new ideas in the areas of production, sales, customer service, and so on.
• Every time a decision is made in an organisation, it should be shared with all personnel. The members of the committee may promptly inform the workers of the committee’s decision. It saves a lot of time when it comes to communicating.
• The committee’s conclusion reflects the sentiments, views, and opinions of the majority of the committee members. Only after obtaining the consent of all those involved in the decision-making process is a decision made.
• Sometimes, a conclusion is reached after consulting with all of the participants involved in the decision-making process. As a result, the committee makes decisions in a democratic manner.
• Even if a person disagrees with the committee’s decision, he may accept it. He will behave in this manner, despite the fact that he will not be forced to accept the choice. It entails the involved individuals’ voluntary acceptance.
• Members of the committee are encouraged to freely express their opinions, ideas, and feelings. It will reduce conflicts of interest among the organization’s workers. Wages, salaries, bonuses, social programmes, and other topics may be discussed.
• The line executives are involved in the decision-making committee. It prevents line executives from feeling as though they haven’t been consulted when choices are made.
• If the committee needs to address an issue, it may do so by following the concept of division of labour. Each committee member may look at the issue from several perspectives at the same time and come up with a viable solution.
• When a person has complete authority and responsibility, he is able to make decisions and put them into action. To put it another way, power and responsibility are concentrated. In the committee structure, there is no concentration of power or responsibility. All members of the committee have power and duty in this organisation.
• Typically, the committee is made up of members that are interested in the organisation.

Disadvantages of Committee Organisation

• The committee is made up of men from diverse areas. Each team member presents his or her own thoughts, opinions, and solutions. As a consequence, making a choice takes longer.
• It raises the organization’s administrative costs. Whenever the committee meets to solve an issue or make a decision, expenses are spent.
• If there is a lack of mutual cooperation and members do not have faith in the capacity of the other members of the committee, they will fail to function properly and the committee will be disbanded without making any decisions.
• Under committee organisation, the secret of the committee’s decision cannot be preserved. The reason for this is because a committee has a significant number of members.
• If the choice does not yield positive benefits for the organisation, no one can be held responsible. Each accuses the other of poor decision-making and unfavourable outcomes.
• When a decision does not represent the members of the committee’s viewpoints, it may be made on the basis of compromise.
• It has been noted that sometimes irrelevant topics are addressed. Within a brief amount of time, a committee should make a conclusion.
• Each committee member is asked to share his or her own thoughts. It might lead to a heated debate among the committee members. It does not help the organisation in any way.
• Because of their ignorance or the committee members’ dominance, committee members do not exercise their initiative. As a result, the committee’s conclusion does not retain its representative character.
• Members of committees that meet regularly may not be able to pay their entire attention to their responsibilities.
• As in a democracy, a committee is created to enjoy the rewards. However, in the vast majority of situations, the committee serves as a stooge of the management.
• Individually, the committee members are unable to develop their abilities or capabilities. Furthermore, it impairs the committee members’ competence in a variety of other areas.

Recommendations for Efficient Functioning of a Committee

For the effective operation of a committee-type organisation, the following suggestions are made:

1. Clear objectives: A committee may work well provided the organization’s goals are communicated clearly. The scope of a committee’s job should be clearly defined.
2. Committee size: The number of members on a committee should not be too huge or tiny. In a committee, only required members should be included. Executive committee members should not serve on more than three committees. A committee should include between 6 and 8 members.
3. Selection of meetings: Meetings should be chosen carefully since the success of a committee is determined on its members. As a result, while appointing a committee member, management should use extreme caution. When choosing a committee member, consideration should be given to the person’s competence, expertise, and experience.
4. Committee role: A committee’s power and responsibilities should be clearly defined. If this is the case, the members of a committee will operate in accordance with the rules established by the committee.
5. The chairman’s role: When choosing a chairman for a committee, extreme caution should be used. The chairman of a committee is sometimes chosen by the members of the committee or recommended by management. The chairman should function as a guy to whom every committee member has easy access, and he should encourage and cooperate with all committee members.
6. Preparation for a meeting: The committee meeting should be held on a regular basis so that timely decisions and actions may be taken to address management issues. Correct judgments should be made to keep the work flow going. It’s a good idea to gather all of the required facts before making a choice.
7. Follow-up: All members of a committee should be informed of the meeting minutes. The follow-up process is also carried out to ensure that the choices are properly implemented.
8. Evaluation: The committee’s performance should be assessed on a regular basis. Certain members of the committee may be added or removed if the necessity arises. The committee’s advantages should outweigh the expenditures paid in order for the committee to operate well.
9. Subject matter selection: Certain types of topics may only be dealt with by a single person. This sort of topic cannot be brought up in front of the committee for consideration. The committee can only deal with difficult issues.

V. Project Management

Following WWII, the concept of project management was created. The goal of this organisation is to eliminate the flaws that exist in effective organisations. One of the flaws of functional organisation is the time it takes to make choices and the lack of coordination.

Project management is created with the goal of completing a programme or project. After a programme or project is completed, the project organisation is no longer required. In addition to its particular programmes or projects, the project organisation is made up of a core of functional departments. In other words, project management is made up of key functional department heads.

A project organisation is best suited to the completion of a few significant projects. “A project organisation may also be the start of an organisation,” Middleton says. cycle. The initiative might turn into a long-term or ongoing endeavour that leads to the creation of a programme or branch organisation. The latter may then be detached from the parent company and created as a full-fledged product division with its own functional structure.”

Feature of Project Organisation

1. The effectiveness of a project’s organisation is determined by how well its operations are coordinated.
2. Each project’s operations are grouped together, resulting in the establishment of a new line of authority.
3. Each group’s responsibility for their individual initiatives is established, resulting in meaningful control.

Drawbacks of Project Organisation

1. Professionals are assigned to the project, but there is no guarantee that they will work on it continuously in a project organisation.
2. There is a lack of adequate communication and criteria for comparing performance in project management, which diminishes motivation and restricts personnel in an organisation.
3. Under the pressure of upper management, a decision is made in the project organisation, which has grave ramifications.
4. The top management does not provide complete cooperation for the project organization’s proper functioning, and the top management may be an impediment.

VI. MATRIX ORGANIZATION

Each department in a matrix organisation is given a specific mission, and each department may utilise the organization’s available resources as well as the coordination of other departments.

According to Stanley Davis and Paul Lawrence, a matrix organisation is “any organisation that utilises a multiple command structure, as well as related support systems and an associated organisational culture and behaviour pattern,” and may be used to handle a large number of minor projects.

Conditions for Effective Matrix Organisation

1. The matrix organisation does not follow the scalar chain of command concept, which requires a project manager to provide his report to several superiors.
2. There should be an agreement among the management on the power to use the available resources, which includes physical, financial, and human resources.
3. When managers disagree on how to use existing resources, there should be a shared desire among power holders to confront the disagreements and work to resolve them.

Advantages of Matrix Organisation

1. Attainment of goals: The matrix organisation combines the advantages of functional, line, and staff organisation to assure the achievement of goals via technical specialisation.
2. Best resource utilisation: The available resources are employed by the managers for the defined project, while the resources are also used by the managers with full comprehension.
3. Appropriate structure: Matrix organisation is an appropriate structure for an organisation to adapt to external changes, such as meeting consumer wants according to expectations without impacting the marketing of an existing product in order to survive the competition.
4. Flexibility: The matrix organisation is a very adaptable organisation, with rules and procedures based on the organization’s experience.
5. Motivation: If a department is taking too long to complete a project, proper motivation is given to that department.
6. Personal development: The matrix organisation provides a wonderful opportunity for effective people to be trained and developed.

Demerits of Matrix Organisation

The following are some of the drawbacks or drawbacks of matrix organisation:

1. Complex relationship: The matrix organisation does not follow the scalar chain of command principle, in which a single person reports to multiple superiors, resulting in fewer opportunities for rapport with their respective superiors.
2. Influence struggle: A subordinate is ruled by a number of superiors, implying that several authority holders wield power over the subordinate, delaying the project’s completion.
3. Excessive focus on group decision-making: The department uses available resources to make group choices, and there is no spirit of accommodation and understanding in the matrix organisation, therefore there is a delay in reaching a group decision, which delays the project’s completion.
4. Arising conflect resolution: The resolution or decision is made in a matrix organisation with too much self-analysis by decision makers, which may cause the decision makers’ or managers’ work to be late in the project’s completion.
5. Heterogeneous: A matrix organisation is created by deputing skilled professionals from various departments on a temporary basis. It is difficult to coordinate the work of skilled staff members when there is a lack of unity of command in an organisation.

VII. FREE FORM ORGANISATION

In many ways, the Free Form Organization resembles the project and matrix organisations, and it is also known as organic or adhoc (ratio) organisation. It is formed whenever a need arises to form an organisation for the purpose of achieving a specific goal, and it will be dissolved once the goal is achieved.

The establishment of the Free Form Organization is determined by the organization’s external environment; if the external environment has a significant impact on the business, the Free Form Organization will be formed.

In a Free Form Organization, decisions are made without regard to policies or guidelines that have been established in advance. Normally, decisions are made in any organisation by adhering to the organization’s policies, rules, and regulations, which have been established in advance and are followed when making decisions.

When the structure of a Free Form Organization changes, no tasks are assigned to it specifically; nevertheless, tasks are assigned to superiors and subordinates based on their level of experience and competence. As a result, authority is available to the person.

Because the Free Form Organization lacks a formal structure, communication may flow in any direction, including upwards, downwards, and horizontally.

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