Term Paper on Organisation Structure | Management

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Term Paper on Organisation Structure

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One of the important components of organisation process is the creation of appropriate organisation structure. This refers to the hierarchical arrangement of various position of the enterprise. If defines the relationship between various positions, department and persons. It facilitates in allocating authority formally and decides who is to report to whom and who is to direct to whom. It also lays down the pattern of communication and co-ordination in the enterprise.

Organisation structure differs from organisation to organisation. No one form of organisation is suitable for all organisations at all times. Every organisation has to evolve its own structure based on its activities, requirements competence of personnel and the philosophy of management. Organisation structure defines the formal relationship into managerial hierarchy.

The common forms of organisation structure are:

1. Line organisation

2. Functional organisation.

3. Line and staff organisation

Recently, authorities have developed project organisation, Matrix organisation and committees.

Term Paper on Organisation Structure # 1. Line Organisation:

Other names: Scalar organisation, Military organisation, Vertical organisation, Departmental organisation:

It is the simplest form of organisation structure. It represents the structure in a direct vertical relationship through which authority flows. In this structure line of authority flows vertically downward from top to bottom throughout the organisation.

The quantum of authority is highest at the top and reduces at each successive level down the hierarchy. The line of authority consists of an uninterrupted series of authority steps and forms a hierarchical arrangement. It is not only the avenue of command to operating personnel but also provides the channel of communication, coordination and accountability in enterprise.

Advantages:

The advantages of line organisation are:

(1) Simplicity:

This is simple to understand and easy to establish. It can be easily defined and explained to workers.

(2) Fixed Responsibility:

There is fixed responsibility in the organisation at each level. Everyone at each level knows to whom he is responsible and who is responsible to him. There is no possibility for shirking responsibility.

(3) Flexibility:

The organisation can be more dynamic in its approach as it can accommodate adjustments and changes.

(4) Prompt Decisions:

Unification of authority, unified control and fixed responsibility ensure quick and prompt decision. It is economical also.

(5) Minimum Conflict:

The chances for conflict are very limited as the authority of various personnel is well-defined.

(6) Effective Discipline:

Discipline is to be instilled in the organisation and this is possible by keeping each position under the direct control of a superior authority. So it is easy to maintain discipline among the people.

(7) Orderly Communication:

The communication between superiors and subordinates flows in a vertical line so the flow of communication is orderly in nature.

Demerits:

The line organisation suffers from the following disadvantages:

(1) Unitary Administration:

Unity of command is the main advantage as well as the disadvantage. All important decisions are taken by the top executives. The success or failure depends on the decisions taken and potentials of the individuals.

(2) Overloading:

Centralisation of authority at the top is the important feature of the organisation. The superiors at top level are overloaded with work. He has to supervise the performance of jobs of various nature and to take vital decisions. This affects the efficiency and the superiors may not be able to direct the efforts of subordinates in the right direction.

(3) Lack of Specialization:

Business in the present is of complex nature and needs specialisation. The executives at various levels are to supervise and control too many jobs of diverse nature and it is physically not possible for him to acquire the skills of all these jobs. So this affects the operating efficiency and the executives are not specialists.

(4) Lack of Effective Communication:

Subordinates are to follow the decisions taken by the top executive. The subordinates are to implement the decisions taken by the top executive. They lack the courage to point out the weakness of decisions. There is lack of upward communication completely.

(5) Problem of Succession:

At the top level of management there is centralisation of authority. If a competent top manager retires he is to be replaced by another manager with same potentials. Otherwise the organisation will suffer.

(6) Lack of Conceptual Thinking:

The overloading of work presents managers from concentrating on organised thinking which is necessary for growth and development. Further they do not have time to concentrate on long term problems of the organisation.

(7) Scope for Favouritism:

Centralisation of authority at the top leads to favoritism and nepotism as the judgement of people and problems will have personal bias.

(8) Problem of Co-Ordination:

Line organisation stresses on vertical relationship and not on horizontal relationship. This creates problem in large organisations regarding co-ordination. Co-ordination becomes tougher as departments feel independent.

Evaluation:

In spite of its limitations the organisation is suitable for:

(a) Small organisations with limited subordinates.

(b) The methods of operations of organisations are straight and simple and the work is largely routine nature.

(c) Suitable for continuous processes organisations or where automatic machines are used.

Term Paper on Organisation Structure # 2. Functional Organisation:

Under functional organisation activities of the enterprise are classified according to certain functions like production, marketing, finance, personnel etc. and placed under the change of functional specialists. A functional in-charge directs the subordinates throughout the organisations in his area of operation. In this case the subordinate is receiving orders from not only from one superior but from several functional specialists. The subordinates are accountable to different functional specialists for performance.

Functional organisation was evolved by F.W. Taylor who advocated the planning and controlling of manufacturing organisations on the basis of specialisation. It means the introduction of division of labour in management wherein thinking functions are separated. It means putting the specialists in top positions throughout the organisation. It confers upon the holder of a functional position a limited power of command over the people of various department concerning their function.

This organisation is based on the principles of separation of planning and execution and specialisation in management at all levels. On the production front the Time and cost clerk, Instruction card clerk, Route clerk and disciplinarian perform the planning function while the execution is attended by the Gang boss, Speed boss, Repair boss and Inspector. So in this structure the work is planned by a batch of specialists and it has got to be executed by another group of specialists.

Features:

The features of this system are:

(a) The entire organisational activities are divided into specified functions.

(b) Each functional area is under the charge of a functional specialist. The specialist has the authority to give orders regarding his function where so ever that function is performed.

(c) If anybody in the enterprise has to take any decision relating to a particular function, it has to be in consultation with the functional specialist.

Advantages:

The advantages of functional organisation are:

(a) Specialisation:

This structure helps in achieving the benefits of specialisation of work. The functional in-charge as a specialist helps to improve the performance of subordinates.

(b) Executive Development:

This helps the organisation to develop executives with the functional specialists.

(c) Work Load:

This reduces the workload of the top executives. The functional specialists share the supervision function and he concentrates only on his area.

(d) Functional Organisation:

It offers a greater scope for expansion when compared to the line organisation. The introduction of specialists facilitates the line managers to overcome the problem of their limited capabilities.

(e) Functional Managers:

The functional managers facilitate better control and supervision in the organisation.

Disadvantages:

The disadvantages of functional organisation are:

Functional organisation suffers from the following drawbacks:

(a) It violates the principle of unity of command since an employee is accountable to a number of superiors.

(b) The operation of functional organisation is too complicated to be easily understood by the workers. They are supervised by a number of losses. This creates confusion in the organisation.

(c) This structure develops specialists rather than generalists. This may create problem in succession of top executives.

(d) It reduces the outlook of the managers by narrowing it down to the department and it creates boundaries. This results in loss of overall perspective in dealing with business problems.

(e) Co-ordination becomes difficult among functional executives and there is delay in decision making due to the involvement of specialists.

(f) Because of absence of unity of command it is difficult to locate responsibility. The tendency for back-passing, side-tracking of responsibility.

(g) Cost of operations increase due multiplicity of specialists. This may even over-weigh the economies of specialisation.

(h) This is not suitable for non-manufacturing activities like marketing, purchasing accounts etc.

Conclusion:

In reality functional organisation as developed by Taylor cannot be entirely adopted for management. In the present day context this structure refers to classification of activities of the firm according to functions and placing each function under the change of an expert executive. All related works of one kind are grouped together under functional departments like manufacturing, marketing personnel, finance etc. These departmental heads are to function under a single coordinating head known as the Chief Executive Officer.

Differences between Line Organisation and Functional Organization:

(a) Line of Authority:

In Line organisation the line of authority is vertical in its flow as it follows the principle of scalar chain. In functional organisation the line of authority is functional or diagonal. The functional authority has authority over his function where ever it is performed.

(b) Use of Managers:

The line organisation makes use of only line managers who are generalists. They make use of functional managers who are specialists in their respective areas.

(c) Unity of Command:

In Line organisation there is unity of command. Each subordinate receives orders from one boss only. In functional organisation unity of command is not followed as each subordinate gets instructions from his line boss and functional boss.

(d) Discipline:

In Line organisation strict discipline is maintained. But it cannot be maintained in functional organisation.

(e) Suitability:

Line organisation is suitable for small scale operations. Functional organisation is suitable for large scale operations only.

Term Paper on Organisation Structure # 3. Line and Staff Organization:

The Line organisation insists on too much on the unity of command while functional organisation emphasised on decentralisation of control. To strike a happy balance between the two the line and staff organisation was evolved.

In line and staff orgainisation the structure is basically that of the line organisation but staff officers who are functional experts used to advise line authorities in the performance of their duties. The staff officers used renders advisory aids to the departmental heads but they have no power to enforce it as enforcement was done by the line officers.

This system implies the combined role of line and staff officers in achieving the business objectives. It consists of line officers who have authority to take decisions, enforce them, control the personnel, regulate performance of the job and who are accountable to their superiors in the line for results realised.

In the present day set up the organisational ramifications necessitates the assistance of the experts who has to advise the line authority in connection with problems of decision-making, organising, controlling etc. So in this organisational set-up line connotes authority to take action, authority to decide, staff supplies facts and information that will enable the line manager to make the best decisions.

So in line and staff organisation directness of authority is maintained along with induction of specialists with no executive authority and they are required to advise and assist the authorities to attain their objectives. Line authorities wield power whereas staff officers have no direct authority but tender advice to the line officers on matters of policy suited to fulfil the objectives.

Merits:

The advantages of line and staff organisation are:

(a) Specialised Knowledge:

Line managers get the benefit of specialised knowledge of staff specialists at various levels.

(b) Reduction of Workload:

There is workload reduction to line managers as their burden in shared by staff authorities to present data for decision making.

(c) Proper Weightage:

All the problems will receive proper consideration from both line and staff authority.

(d) Better Decisions:

The staff authorities will help the line executives in taking better decisions by providing them with adequate information of right type at the right moment.

(e) Flexibility:

Line and staff organisation is more flexible compared to line organisation. General staff can be employed to help line managers at various levels.

(f) Unity of Command:

In this system unity of command is maintained without jettisoning the principle of specialisation. So the experts provide special guidance without giving orders and the line manager has the right to give orders.

Demerits:

The disadvantages of line and staff organisation are:

(a) There is generally a conflict between the line and staff executives. There is a danger that the staff encroach on the line authority. Line authority is of the opinion that staff is not giving proper and right type of advice and staff generally complains that their advice is not properly attended to.

(b) The allocation of duties between the line and staff executives is not generally very clear. This may hamper the coordination in the organisation.

(c) Staff men are not accountable for results so they may not be performing their duties properly.

(d) There is a wide variation in the orientation of the line and staff men. Line executives are problem shooters while staff officials who are specialists in their fields tend to be more theoretical.

Differences between Line Organisation and Line and Staff Organization:

(a) Nature:

Line organisation have only line authority to perform/execute whereas in Line and staff organisation staff refers to those positions who advice and provide service, to the line in the attainment of organisational objectives in addition to the line authority.

(b) Experts:

No experts in line organisation. There are experts in Line and staff organisation.

(c) Discipline:

In Line organisation there is strict discipline. There is loose discipline in Line and staff.

(d) Friction:

No friction in Line organisation but there is always scope of friction between line and staff.

(e) Specialisation:

Line organisation is not based on planned specialisation while Line and staff organisation is based on planned specialisation.

(f) Popularity:

In Line organisation certain line men may become key men as they occupy those positions on which the survival organisation depends. This is not in the case of Line and staff organisation.

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Term Paper on Organisation Structure # 4. Project Organisation:

In this type of organisation a separate division or project unit is created for each project. As and when the project is completed the project unit is dismantled. The principle of use of throw is used in this organisation.

The project units have temporary character. The idea behind this is that with the changes in environment the organisation is altered. It is a separate type of organisation like line or functional type. It is set up within an organisation for the purpose of completing a project or accomplishing assigned objectives in time and within cost and profit goals.

Features:

The features of a project organisation are:

(a) A project manager is appointed to take up the responsibility to complete the project.

(b) The employees of the project are drawn from various functional departments.

(c) Normally the project manager has no vertical authority over personnel drawn from various functional departments.

(d) A project coordinator is appointed to coordinate the activities of the project team.

(e) He is responsible for the completion of the project.

Merits:

The merits of project organisation are:

(a) It facilitates the maximum use of specialized knowledge and skill which is available to each project. The project employees are drawn from various functional departments. There is easy transferability of knowledge and experience from one project to another.

(b) Project people have a functional home once the project is completed they sent back to the parent department. While in service they are provided with stimulating opportunities to participate in the decision process.

(c) Project structures are promoting and maintaining flexibility. Specialisation is achieved through projects to achieve a particular objective for which the project is created.

(d) It develops the sense of dynamism in organisations when environmental factors are fast changing.

(e) It provides a tailor made approach to complex projects and provides the concentrated attention it needs.

(f) It provides greater check over the project work and facilitates fixation of individual responsibility for results. It makes control more meaningful.

Demerits:

The disadvantages of project organisation are:

(a) There is dual loyalty to specialists attached to the project organisation. This creates anxiety and tension. Their relationship with functional managers is unclear. This creates a feeling of insecurity and uncertainty among members.

(b) Project structure is an ad-hoc arrangement and it has limited life. Once the project is completed the project team is disbanded. So the persons attached with the project feel insecure. They feel the completion of the project means the end of their job. So they may indulge in project slowdowns.

(c) Normally project organisation suffers from authority gap for project managers because responsibility out-weighs authority. The projects are not self-sufficient. Functional co-operation and co-ordination is difficult to achieve. So the project performance is affected.

(d) In project organisations the major problems are lack of clearly defined responsibility, lack of clear communication and lack of performance standards for various professionals.

(e) In project organisations decision making is very difficult due to unusual pressure from specialists. Further they are to be completed on time bound basis. This again prevents proper performance.

Evaluation:

Project organisation is not a separate type of organisation. It is an organisation within the organisation. It has an independent character of drawing personnel from different departments of the main organisation.

Its features are:

(a) It is characterised by exceptionally strong horizontal working relationship.

(b) It cuts horizontally the normal organisation structure and forms a semi-autonomous body.

(c) It usually requires prompt decisions and actions from a number of functional areas.

(d) Flow of information is usually internal and not vertical.

(e) To make the project organisation more effective the status of the project manager should be the same in the managerial hierarchy as it is in the case of managers.

(f) Project management has an ad hoc character. This is disbanded and the personnel are sent back to the parent department.

So based on the features the project organisation is suitable to the following cases:

(a) This is suitable for one time tasks which is definable in terms of single specific goal. So it is suitable for jobs of temporary character.

(b) This is more suitable to assignments to be completed within a given period of time. The time factor is critical because if the project is not completed within the stipulated period of time it invoke penalty provisions.

(c) It is complex in nature and it calls for a high degree of interdependence among tasks. So it is suitable for tasks of this type.

Term Paper on Organisation Structure # 5. Matrix Organisation:

This is the latest organisational design which facilitates flexible structure to achieve a series of project objectives. This was first developed in aerospace industry. The initial impetus was a government demand for a single contact manager for each programme or project who would be responsible to the government for the project’s progress and performance.

To meet this need, a project leader was appointed to share authority with the leaders of the preexisting technical or functional departments. This temporary arrangement then evolved into formal matrix organisations.

In mathematics, a matrix is an array of vertical and horizontal rows. Matrix organisational structure is one in which the employee reports to both a functional or divisional manager and to a project or group manager. It is a structure wherein pure project organisation is superimposed on the formal organisation. It is created by merging the two structures — the project and functional.

According to Davis and Lawrence a matrix organisation is “any organisation that employees a multiple command system that includes not only the multiple command structure but also related support mechanism and an associated organisational culture and behaviour pattern.”

In matrix organisation personnel to any project are drawn from functional departments. As and when the project is completed they return to original functional departments. Their activities on the project are controlled and co­ordinated by the project manager.

While on project they are under dual authority. The main chain of command is functional or divisional. The second line of command is shown horizontally. This lateral chain depicts a project or a business team, led by a project or group manager who is an expert in the team’s assigned area of specialisation. That is why matrix structure is often referred to as “multiple command system.”

Salient Features:

The following are the salient features of Matrix organisation:

(a) Matrix organisation is the mix of two organisations i.e. project and the functional organisation. Project organisation is also a part of the functional organisation.

(b) Project manager is in-charge of the specified project and draws personnel from functional departments. After the completion of the project the employees return to their parent departments for reassignment to other projects. This is also applicable to the project manager.

(c) In matrix organisation the project manager is the general manager of the project. Each functional manager is responsible for maintaining the integrity of this function.

(d) Management by project objective is paramount to the way of thinking in a matrix organisation.

Advantages:

The advantages of matrix organisation are as follows:

(a) Efficiency:

A matrix organisation facilitates better planning and control as this structure focuses attention and resources on a single project specialised knowledge is available to all project products on an equal basis. Knowledge and experience can be transferred from one project to another. This improves the operating efficiency of the organisation.

(b) Flexibility:

This is more flexible than the traditional functional organisation. This encourages constant interaction between project unit and functional department members. As and when the projects are completed function services are released with ease and flexibility. Prompt and quick decisions can be taken and organisation can accommodate the changing and uncertain environment with effortless ease.

(c) Motivation:

The project personnel are motivated as it helps the employees to grow and develop. It enlarges their experience and widens their outlook. The job rotation process helps them to learn something of other specialties.

(D) Focus on Authority of Knowledge:

Matrix organisation stresses on authority of knowledge rather than status of an individual in the organisational hierarchy. So it results in better utilisation of resources. Employees can contribute more towards organisational objectives and can have greater say in important decisions.

(e) Work Load:

Reduces the work load of the top management as most of the decisions are taken at the lower levels. So the top managements work load is getting reduced.

(f) Checks and Balances:

In matrix organisation, a better balance between cost, time and performance can be obtained through the built-in checks and balance and the continuous negotiations carried on between the project and functional organisation.

Disadvantages:

Matrix organisation is subject to the following limitations:

(a) Power Struggle:

This encourages power struggle between project and functional managers. Further it violates the principle of unity of command as the employees receive orders from both functional bosses and project manager.

(b) Complexity:

The organisational relationship gets complicated as there is confusion among personnel. Many informal relationships between employees may develop and their personal objectives can come into conflict with project objectives. This may result in lack of commitment to project objectives. So project managers may find it difficult to control its functioning.

(c) Delayed Decisions:

In matrix orgnisation there are chances for delaying of decisions due to lack of understanding and accommodation among functional and project managers. So matrix organisation has been reported as costly, cumbersome and bureaucratic. The complication demotivates people and it is detrimental to their development. 

Term Paper on Organisation Structure # 6. Committee:

Committee means a group of persons especially designed to take decisions or make recommendations on certain matters referred to it. It is a device which is used as supplementary to or in addition to any of the types of organisation.

Thus, committee may be formed in any type of organisation to take a decision on matters referred to it by the management, committees in organisations are extensively used to solve multifaceted problems of large and complex business units. It may be constituted at any level of management. It is only a device within an organisation to deal with a specific problem.

Committee organisation implies that instead of a single staff officer acting in advisory capacity, a group of experts will examine the problems collectively and approach it scientifically and make suitable suggestions for effective functioning. It is a group of persons to whom certain managerial functions are assigned or from whom some advisory and exploratory services are expected. It is described as a method of collective thinking, corporate judgement and common decision.

Definition:

Koontz and O’Donnell “Committee is a group of persons to whom as a group some matter is committed.”

Louis. A. Allen defines a committee as “a body of persons appointed unelected to meet on an organised basis for consideration of matters brought before it.”

W.H. Newman defines a committee as “a group of persons specifically designed to perform some administrative act. It functions only as a group and requires a free interchange of ideas among members.”

It is also defined as a group of competent and interested persons pooling their thoughts and actions to facilitate decision making. Decisions on administrative actions are taken as per consensus arrived at as a result of exchange of views and opinions expressed by the group of people comprising a committee. Varied lines of thinking are blended together through deliberations and arrive at widely acceptable decision for crystallizing any course of action in the process of managing any undertaking.

Characteristics:

The characteristics of committees are:

(a) A committee is a group of two or more persons either appointed or elected. It functions as a group.

(b) Committees functions well within the well-defined jurisdictions and they deal with the specific problems referred to it.

(c) The members are at liberty to deal with problems in detail and they discuss each and every aspect of the problem in greater detail.

(d) A committee may have the authority either to take final decisions or to recommend the action in the matter referred to it.

(e) A committee may be constituted at any level of organisation. The members of the committee may be drawn from different levels but they enjoy equal authority.

Types:

Committees are constituted at different levels and with varied terms of reference and with diversified functions. Some committees perform managerial function and some may be only recommendatory bodies.

They are classified in the following ways:

(a) Power as the Basis of Classification:

Committees have full power to decide and act. As against this committees have limited power and whose decisions are subject to approval or veto by higher authorities.

(b) Based on Permanence:

Committees are classified as standing and ad hoc committees. A standing committee has permanent existence and its members change depending on their terms in the committee. An ad hoc committee is constituted for a specific purpose. It is of temporary in nature and it stands dissolved as and when the purpose for which it is constituted is achieved.

(c) Advisory or Executive Committee:

An advisory committee is authorized to make recommendations to the line executives. They may or may not accept the recommendations or they may go in modifications also.

The main functions of advisory committee are:

(i) Arranging facts from different sources and arranging them in a classified way.

(ii) Make an intelligent study of the data and go in for analytical and critical appraisal of the facts and problems presented.

(iii) After analysis, frame conclusions and formulate suggestions.

(iv) Compiling detailed reports with recommendations and guidelines for the perusal of line officers.

(v) Evolving standards for evaluating performance.

(vi) Co-ordination of activities of various departments.

So they function as reviewing and recommending units. An executive committee has the authority to undertake decision or action which may be binding on the subordinates. It may be delegated authority to take a final decision.

(d) Based on Authority:

They may be classified into line or staff authority. A Line committee is charged with the authority of decision making. This decision will bind the subordinates. Line committees are also called as Executive committee or plural executives.

The functions of these committees are:

(i) To decide on matters of their domain.

(ii) To frame policies and programmes and take steps for their implementation.

(iii) To plan the operations in terms of objectives, schedules, operational methods etc.

(iv) Organising the efforts in aiming at fulfillment of plants.

(v) Appoint suitable staff, assign them work, motivate them and to extract work from them.

(vi) Directing and controlling the efforts of subordinates.

Normally committees are appointed for advisory purposes. Very rarely committees are formed with full or partial managerial powers. A group may be entrusted with the authority to take decisions and follow-up actions in management. This is known as group management or plural executives.

Regarding managerial functions plural executive is useful in planning and broader aspects of control. Functions like leadership, organisation and execution requires more of individual drive and action rather than committee decision. The plural executives are responsible for overall results.

The staff committee is purely advisory in nature.

(e) Formal and Informal Committees:

Formal committees are those which have been established under organisation rules, regulations and with specific authority spelling out its duties and authority. Most of the committees are formal ones.

An informal committee is organised without specific delegation of authority. It does not form part of organisation. A manager has some difficulty in dealing with a problem. He call for a meeting of departmental heads to discuss and to find out remedial suggestions. This may be an informal organisation.

Advantages:

(a) Group Decisions:

The decisions taken by a committee are group and not individual decisions. This eliminates the channels of biased and prejudiced decisions by looking at problems from different angles. Committees provide an opportunity for pooling of ideas and lead to integrated group deliberations and judgements. So the decisions taken by the committee are more balanced.

(b) Co-Ordination:

Committee can play an effective role in co-ordinating various parts of the organisation. They can integrate and unify various viewpoints of persons from different departments. Group deliberations can facilitate the pursuing of a common cause of action.

(c) Motivation:

Committees facilitate the seeming of co-operation of employees. The executives participate in the development of plans he naturally acquires interest in its execution. This increases the motivation of employees. The qualities of the decisions also improve.

(d) Representation of Interest Groups:

Committees are a useful device to be given representation to various interest groups with the object of ensuring a sense of loyalty and interest in the decisions made.

(e) Facilitates Easy Flow of Communication:

Committees are useful means of communication. It is a detailed and easy mode of communication. There is scope for the easy flow of communication.

(f) No Concentration of Power:

When a single individual is vested with power of decision making there are possibilities for concentration of too much power. Power corrupts man. So committees are appointed to check the evil of concentration of power in the hands of single individual.

(g) Develops Management:

The members of the group learn a lot by getting an opportunity to enrich their experience by participating in various committees. This will enable them to develop an integrating view in developing solution to various organisational problems. This develops a positive attitude and managerial potentials of the individuals.

(h) Consolidation of Authority:

Management can solve some special problems by consulting other authorities. Committee facilitates management to consolidate authority that is spread over the organisation in various departments. In this way prompt and effective decisions can be taken.

Demerits:

The demerits of committees are:

(a) Decision Making:

The process of decision-making in committees are said to be slow. Because to take decisions the committee meeting is to be called for, the issues are to be debated and decisions are to be taken.

This is a detailed procedure. In meetings every speaker is to be heard patiently. So it takes a long time to get the result for action. At times, due to conflicting viewpoints of members and poor leadership no decision may be taken. So it involves in delaying of decisions.

(b) Divided Responsibility:

No fixing of responsibility is possible in the case of committees. No member can be held responsible for the committee decisions, if there is something wrong.

(c) Tyranny of Minority:

Committees are often dominated by some aggressive individuals who forcibly carry the majority with their view which may not be suited to the broad interests of the organisation. There are possibilities for coercion by majority and tyranny of minority through the process of group judgement.

(d) Dominance of a Few:

The chairman or any strong member of the committee prevails on others. They start dominating others. This leads to groupism and committee actions are sabotaged. Stronger personality overshadows and manipulation game starts resulting in spoiling mutual respect and co-operation. Dominance by a few results into bitterness, discontent and frustration.

(e) Compromise Decisions:

The decisions of committees are merely compromises unrelated to the facts of the situation. There arises a tendency to reach a patch work decision in an attempt to iron out differences between committee members. Compromise decisions are unhelpful for dynamic management if the}’ are not scientifically conceived. The decisions of a committee are generally the result of joint thinking and group judgement but that of compromise which is acceptable to all.

(f) Lack of Initiative:

Members of a committee may not show independent initiative and enthusiasm because of their own ignorance or predominance by the chairman or any other leading or aggressive member. Thus the representative character of its decision is lost.

(g) Misuse of Committer:

Committees are used to avoid action or delay decisions or to take unpleasant decisions. At times committees may be constituted to cool off agitation, to overcome resistance, to gain time or to avoid individual responsibility.

(h) Expensive:

This system will also prove to be highly expensive. The monetary cost of a meeting may not be justified by the worth of the decision taken at the meeting. Overhead costs arising from delay and indecision can be regarded as its weakness.

The reasons for constituting committees are:

(i) To give a democratic touch to managerial activities.

(ii) To secure common judgement on administrative matters.

(iii) To bring about comprehensive thinking by different individuals and to arrive at consensus decisions.

(iv) To gain advantage of group deliberation and judgement.

(v) To check the excessive granting of authority to individuals.

(vi) To give representation to interested groups in decision making.

(vii) To bring about co-ordination of plans and policies.

(viii) To use the organisation for motivating the officials to take initiative in implementing decisions or undertaking similar executive actions.

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