Archive for the ‘committee organization’ Category

Organizational structure-1

January 27, 2009

(d) Committee organization: In today’s complex business world, each activity taken out by any department affects the work of other departments. A slight change in production policy will affect the sales department. Similarly, change in the dales policy or a new sales policy, cannot be followed by the sales managers, without consulting the finance department or the production department.

It should therefore be well understood that important policy decisions, which affect other departments should not be taken by the in-charge of the department alone, but they should be referred to a committee consisting of the managers of the affecting departments. For example, a blinds company, who is selling vertical blinds and roman shades products online, if production department stop a particular size production than they should inform the marketing departments.  It ensures co-operation and better co-ordination. Thus committee organization is extensively used to solve the multifaceted problems of large and complex business units. Committee is a group of individuals especially designated to take the decision in matters referred to it through free interchange of ideas among its members.

Management can be seen as a function, a process, a profession or a class of people. And along with material, capital and labor, management is considered as a resource. It refers to the kind of tasks and activities that are performed by managers. The specific natures of activities are determined by such managerial functions as planning, organizing, directing and controlling. In fact, management is a process of achieving an organization’s goals and objectives by making the fullest use of available resources like men, materials, machines, money, methods etc. for example, An Instant life insurance rates company, who is selling life insurance quotes online, the role of manager is more important than anyone else in the business.

Organizational structure

January 23, 2009

Although the type of organization would largely depend on the size and nature of the enterprise, yet there are 4 common forms of organizational structure, namely


(a)              line organization

(b)              functional organization

(c)              line and staff organization

(d)              committee organization


(a)             Functional organization : As the name suggests, under this type of organizational structure, all activities in the organization are grouped together according to basic functions like production, marketing, finance, human resource etc. Each function is put under the charge of a specialist who is fully responsible for carrying out the function for the entire enterprise. The authority flows functionally to the divisional heads. The divisional heads report to one specialist with reference to one functional and to another, for another function.


(b)             Line and staff Organization : This type of organization has been evolved to achieve the advantages of the two forms of the organizational structures mentioned above. While the line organization insists too much on the unity of command, the functional organizational emphasizes too much on the decentralization of control. In order to strike a balance, line and staff organization structure has been evolved. In this form of organization, the structure is basically that of the line organization but functional experts are provided to advise line authorities in he performance of their duties.


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