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This segment is to discuss Organisations,its theories,structures and forms(which are):-
Ministries and departments.
Corporations.
Companies.
Boards and Commissions.
Ad- Hoc and Advisory Bodies.
Headquarters and Field relationships.
Regulatory Authorities .
Public - Private Partnerships.
We begin.
ORGANISATION :
First and foremost,to define an Organisation,it is the framework or system through which Administration's objectives and guidelines are implemented and executed to achievement by the management. It facilitates the proper utilisation of men,material and money for the achievement of goals. It is a set or system of interacting elements each having a special function,act,office or relation to the organisation independently but work together in coordination and as a whole to achieve their as well as the organisation's goals and objectives.
Family is a primary unit of organisation where the family members work together to achieve the objective of the family that is well being and safety,etc. Similarly,in a business or governmental organisations,all departments and ministries and offices and employees work together as per the rules and regulations of the organisation in tandem to achieve the organisational goals and objectives and in the process their goals and objectives as well.
SYSTEMS THEORY OF ORGANISATION:
This approach/theory of an Organisation was first developed for physics in the structure of a molecule where it was found that atoms of an element joined together in a systematic manner or like a system to build a molecule of that element.It then later was found suitable to and extended to political science,public administration,management,etc as a modern approach to understanding administration and similar organisations. David Easton and Chester Barnard were the main proponents and contributors of this theory who analysed political as well as administrative systems minutely and the way they are structured and function and derived best possible ways of functioning for the same through their studies.
A system is a set of interconnected elements that function together in tandem to make up the whole being. So, a Systems approach administration is described as a system comprising subsystem,structure,people,action and interaction that enable it(administration or organisation) to perform certain functions. Every system influences its subsystems and is also influenced by its subsystems. This system rejects the closed system approach of an organisation or Classical theory of organisation where it was stated that an organisation is independent of the environment and society and is not connected to it. It states that the organisation and environment work together and have frequent exchanges in order to adjust and in the end there is homoeostasis ( stable state of equilibrium).It also rejects the theory of the Classical theory of taking decisions which are best and there is one best way of doing things,it rather supports the concept of 'equifinality(the property of allowing or having the same effect or result from different events' that means that anything done or decision taken in an organisation,no matter how it is done but the intention should be the same, of getting the work done and achieving the goal,then the end results will always be the same or as desired.
This approach/theory takes a holistic approach,that is it takes into account and studies all elements of an organisation like hierarchy and communications,personnel and procedures,informal as well as formal organisations and the interface(connection) between organisations and the environment It states that organisations and the environment it functions in are interdependent and should be analysed together and how they influence each other. This approach might not lead to a solution of all administrative problems but it surely lends help to generate awareness of the limitation and weaknesses of formal administration in tackling programmes of social and behavioural change. And this systems approach becomes all the modern in today's times where organisations are growing and expanding humongously and are transcending national boundaries with product diversification and growing complexity of operations functioning within them and so it is required to integrate them all within a framework/system for its systematic functioning. It is used as a criticism towards the closed system model of Max Weber's Ideal Bureaucracy theory.
David Easton says policy making and decision making are closely related & adopts the systems approach to analyse public policy making and implementation process in a dynamic political system and the cycle that is involved in it.
This diagram will help understand it in a detailed manner:
Inputs are given by the society/environment to the policy makers as to what is needed to be done and that goes in to the 'black box' (as Easton calls it) where decision making process takes place and then evolves the output in the form of administrative decisions and policies to be implemented. These implementations are then analysed by the society and environment again and then goes back as feedback inputs to the politicians/policy makers and then that again is taken into account and then once again it goes into the black box and decisions are taken as to how to improve it or discard it as per the situation demands and then there is an output again in the form of action. Again the feedback keeps going in and so on and so forth.
CONTINGENCY THEORY OF ORGANISATION:
Contingency(to make suitable arrangements for the future for an anticipated (most often)troublesome situation that might occur) theory is a class of behavioural theory that claims that there is no best way to organize a corporation, to lead a company, or to make decisions. Instead, the optimal course of action is contingent (dependent) upon the internal and external situation.
Some important contingencies(dependent factors for solving future issues) for companies that need to be strengthened are listed below :
1. Technology
2. Suppliers and distributors
3. Consumer interest groups
4. Customers and competitors
5. Government
6. Unions .
The main ideas underlying contingency theory in a nutshell:
1)Organizations are open systems that need careful management to satisfy and balance internal needs and to adapt to environmental circumstances
2)There is no one best way of organizing. The appropriate form depends on the kind of task or environment and situation one is dealing with.
3)Management must be concerned, above all else, with achieving alignments and good fits.
4)Different types or species of organizations are needed in different types of environments.
William Richard Scott describes contingency theory in the following manner: "The best way to organize depends on the nature of the environment to which the organization must relate and adjust to".
TYPES OF ORGANISATIONS :
FORMAL ORGANISATIONS:
An organization that is established as a means for achieving defined objectives has been referred to as a formal organization. Its design specifies how goals are subdivided and reflected in subdivisions of the organization. Divisions, departments, sections, positions, jobs, and tasks make up this work structure. Thus, the formal organization is expected to behave impersonally in regard to relationships with clients or with its members. According to Weber's definition, entry and subsequent advancement is by merit or seniority. Each employee receives a salary and enjoys a degree of tenure that safeguards him from the arbitrary influence of superiors or of powerful clients. The higher his position in the hierarchy, the greater his presumed expertise in adjudicating problems that may arise in the course of the work carried out at lower levels of the organization. It is this bureaucratic structure that forms the basis for the appointment of heads or chiefs of administrative subdivisions in the organization and endows them with the authority attached to their position.
INFORMAL ORGANISATIONS:
The informal organization is the interlocking social structure that governs how people work together in practice. It is the aggregate of behaviours, interactions, norms, personal and professional connections through which work gets done and relationships are built among people who share a common organizational affiliation or cluster of affiliations. It consists of a dynamic set of personal relationships, social networks, communities of common interest, and emotional sources of motivation. The informal organization evolves organically and spontaneously in response to changes in the work environment, the flux of people through its porous boundaries, and the complex social dynamics of its members.
Informal organisations are always found in formal organisations and they are interdependent. Formal organisation is concerned with work only and does not give place to personal connections,so an employee will always want to let out and so it comes out in the form of personal connections between employees through sharing the same goals and motivations in life,parties organised by organisations regularly help these connections and this benefits the work of these employees immensely,as they work with more rigour to be up to their counterparts in status and recognitions as well as economically. So, within every formal organisation one will find an informal organisation,similarly,in every informal organisation you will find its member also observing some rules and regulations of that group membership. So,they are interrelated and if one is shut out,the other will necessarily disintegrate.
STRUCTURE OF ORGANISATIONS OR ORGANISATIONAL STRUCTURE:
Structure as per the dictionary means : The way in which the parts of a system or organisation are arranged or organised. Organisational structure is a system of task in which work of the organization is done. Structure of an organisation determines its form and function and how its parts(different departments,offices,etc) fit together to form the whole. Organisational structure's goal is to coordinate action and activities and also to identify the tasks of the employees to achieve the organisational goals and objectives.
Organisational charts,rules and regulations,decentralisation and centralisation,standard operating procedures,responsibility and authority,etc are taken into consideration while studying the structure of an organisation.
ORGANISATIONAL STRUCTURE TYPES:
Pre-bureaucratic structures:
Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This structure is most common in smaller organizations and is best used to solve simple tasks. The structure is totally centralized. The strategic leader makes all key decisions and most communication is done by one on one conversations. It is particularly useful for new (entrepreneurial) business as it enables the founder to control growth and development.
They are usually based on traditional domination or charismatic domination in the sense of Max Weber's tripartite classification of authority
Bureaucratic structures:
Weber gives the analogy that “the fully developed bureaucratic mechanism compares with other organizations exactly as does the machine compare with the non-mechanical modes of production. Precision, speed, unambiguity,strict subordination, reduction of friction and of material and personal costs- these are raised to the optimum point in the strictly bureaucratic administration.” Bureaucratic structures have a certain degree of standardization. They are better suited for more complex or larger scale organizations, usually adopting a tall structure. The tension between bureaucratic structures and non-bureaucratic is echoed in Burns and Stalker's distinction between mechanistic and organic structures.
The Weberian characteristics of bureaucracy are:
The term of post bureaucratic is used in two senses in the organizational literature: one generic and one much more specific. In the generic sense the term post bureaucratic is often used to describe a range of ideas developed since the 1980s that specifically contrast themselves with Weber's ideal type bureaucracy. This may include total quality management, culture management and matrix management, amongst others. None of these however has left behind the core tenets of Bureaucracy. Hierarchies still exist, authority is still Weber's rational, legal type, and the organization is still rule bound. Heckscher, arguing along these lines, describes them as cleaned up bureaucracies, rather than a fundamental shift away from bureaucracy. Gideon Kunda, in his classic study of culture management at 'Tech' argued that 'the essence of bureaucratic control - the formalisation, codification and enforcement of rules and regulations - does not change in principle.....it shifts focus from organizational structure to the organization's culture'.
Another smaller group of theorists have developed the theory of the Post-Bureaucratic Organization., provide a detailed discussion which attempts to describe an organization that is fundamentally not bureaucratic. Charles Heckscher has developed an ideal type, the post-bureaucratic organization, in which decisions are based on dialogue and consensus rather than authority and command, the organization is a network rather than a hierarchy, open at the boundaries (in direct contrast to culture management); there is an emphasis on meta-decision making rules rather than decision making rules. This sort of horizontal decision making by consensus model is often used in housing cooperatives, other cooperatives and when running a non-profit or community organization. It is used in order to encourage participation and help to empower people who normally experience oppression in groups.
Still other theorists are developing a resurgence of interest in complexity theory and organizations, and have focused on how simple structures can be used to engender organizational adaptations. For instance, Miner studied how simple structures could be used to generate improvisational outcomes in product development. Their study makes links to simple structures and improviser learning. Other scholars such as Jan Rivkin and Sigglekow,and Nelson Repenning revive an older interest in how structure and strategy relate in dynamic environments.
Employees within the functional divisions of an organization tend to perform a specialized set of tasks, for instance the engineering department would be staffed only with software engineers. This leads to operational efficiencies within that group. However it could also lead to a lack of communication between the functional groups within an organization, making the organization slow and inflexible.
As a whole, a functional organization is best suited as a producer of standardized goods and services at large volume and low cost. Coordination and specialization of tasks are centralized in a functional structure, which makes producing a limited amount of products or services efficient and predictable. Moreover, efficiencies can further be realized as functional organizations integrate their activities vertically so that products are sold and distributed quickly and at low cost.For instance, a small business could make components used in production of its products instead of buying them. This benefits the organization and employees faiths.
Also called a "product structure", the divisional structure groups each organizational function into a division. Each division within a divisional structure contains all the necessary resources and functions within it. Divisions can be categorized from different points of view. One might make distinctions on a geographical basis (a US division and an EU division, for example) or on product/service basis (different products for different customers: households or companies). In another example, an automobile company with a divisional structure might have one division for SUVs, another division for subcompact cars, and another division for sedans.
Each division may have its own sales, engineering and marketing departments.
The matrix structure groups employees by both function and product. This structure can combine the best of both separate structures. A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms. An example would be a company that produces two products, "product a" and "product b". Using the matrix structure, this company would organize functions within the company as follows: "product a" sales department, "product a" customer service department, "product a" accounting, "product b" sales department, "product b" customer service department, "product b" accounting department.
Matrix structure is amongst the purest of organizational structures, a simple lattice emulating order and regularity demonstrated in nature is:
1)Weak/Functional Matrix: A project manager with only limited authority is assigned to oversee the cross- functional aspects of the project. The functional managers maintain control over their resources and project areas.
2) Balanced/Functional Matrix: A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers. It brings the best aspects of functional and projectized organizations. However, this is the most difficult system to maintain as the sharing power is delicate proposition.
3)Strong/Project Matrix: A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources as needed.
The flat structure is common in small companies (enterprenerial start-ups, university spin offs). As the company grows it becomes more complex and hierarchical, which leads to an expanded structure, with more levels and departments.
Often, it would result in bureaucracy, the most prevalent structure in the past. It is still, however, relevant in former Soviet Republics, China, and most governmental organizations all over the world. . Its design combines functional and product based divisions, with employees reporting to two heads.Creating a team spirit, the company empowers employees to make their own decisions and train them to develop both hard and soft skills.
This structure can be seen as a complex form of the matrix, as it maintains coordination among products, functions and geographic areas.
In general, over the last decade, it has become increasingly clear that through the forces of globalization, competition and more demanding customers, the structure of many companies has become flatter, less hierarchical, more fluid and even virtual.
One of the newest organizational structures developed in the 20th century is team. In small businesses, the team structure can define the entire organization. Teams can be both horizontal and vertical.While an organization is constituted as a set of people who synergize individual competencies to achieve newer dimensions, the quality of organizational structure revolves around the competencies of teams in totality. Larger bureaucratic organizations can benefit from the flexibility of teams as well.
Another modern structure is network. While business giants risk becoming too clumsy to proact (such as), act and react efficiently, the new network organizations contract out any business function, that can be done better or more cheaply. In essence, managers in network structures spend most of their time coordinating and controlling external relations, usually by electronic means. The potential management opportunities offered by recent advances in complex networks theory have been demonstrated including applications to product design and development, and innovation problem in markets and industries.
A special form of boundaryless organization is virtual. Hedberg, Dahlgren, Hansson, and Olve consider the virtual organization as not physically existing as such, but enabled by software to exist.The virtual organization exists within a network of alliances, using the Internet. This means while the core of the organization can be small but still the company can operate globally be a market leader in its niche. According to Anderson, because of the unlimited shelf space of the Web, the cost of reaching niche goods is falling dramatically. Although none sell in huge numbers, there are so many niche products that collectively they make a significant profit, and that is what made highly innovative Amazon.com so successful.
In the 21st century, even though most, if not all, organizations are not of a pure hierarchical structure, many managers are still blind-sided to the existence of the flat community structure within their organizations.
The business firm is no longer just a place where people come to work. For most of the employees, the firm confers on them that sense of belonging and identity- the firm has become their “village”, their community. The business firm of the 21st century is not just a hierarchy which ensures maximum efficiency and profit; it is also the community where people belong to and grow together- where their affective and innovative needs are met.
Lim, Griffiths, and Sambrook developed the Hierarchy-Community Phenotype Model of Organizational Structure borrowing from the concept of Phenotype from genetics. "A phenotype refers to the observable characteristics of an organism. It results from the expression of an organism’s genes and the influence of the environment. The expression of an organism’s genes is usually determined by pairs of alleles. Alleles are different forms of a gene. In our model, each employee’s formal, hierarchical participation and informal, community participation within the organization, as influenced by his or her environment, contributes to the overall observable characteristics (phenotype) of the organization. In other words, just as all the pair of alleles within the genetic material of an organism determines the physical characteristics of the organism, the combined expressions of all the employees’ formal hierarchical and informal community participation within an organization give rise to the organizational structure. Due to the vast potentially different combination of the employees’ formal hierarchical and informal community participation, each organization is therefore a unique phenotype along a spectrum between a pure hierarchy and a pure community (flat) organizational structure."
FORMS OF ORGANISATIONS:
Different types of organisations are seen in the govt set up discharging functions of a varied nature and varied discretion and so that all are done smoothly. Appropriate autonomy is given to them as per the requirement.
1) MINISTRY/MINISTRIES:
It is a term used to refer to the office of the minister/political executive designated with a portfolio to direct,supervise,monitor,control and function in a specific area. It is highly significant and ensures democratic implementation of public policy. It is headed by a political executive and day to day activities and operations are taken care of by the administrators who are the permanent executive or the bureaucrats. So it is headed by a politician so that he handles it democratically because since he is elected by the people therefore he will always be cautious of the people'e choices and needs and will make the ministry work towards achieving that with all rigour as his claim to power and this ministry is dependent on that and this is why he was chosen. Ministry is the way of organising business related to a specific area under the direction of meta policy(bigger/broader policy).
2) DEPARTMENT:
A department is a part of a larger organization with a specific responsibility. It is that fundamental or basic arrangement through which the policy process could be organised in regards to formulation as well as implementation activities of policies. It functions under a Minister or can be independent of any ministry and function on its autonomously directly under the Prime Minister himself,like the Department of Atomic Energy is directly under the Prime Minister and he takes all the decisions. It could not be merged under any other Ministry like the Ministry of New and Renewable Energy,etc because it needed special attention with specialised people in that field and rapid action to approve decisions and research files to implement,therefore it was created for smooth functioning considering the urgency of the power situation in India as a growing nation The department is responsible for nuclear technology, including nuclear power and research.. Where a department or comes under a Ministry ( ex. the Ministry of agriculture has many departments under it) then it is headed by (politically headed) the Minister in charge of that portfolio but commissioned (administrative head) and day to day activities are headed by a senior bureaucrat having sufficient experience. It helps necessary communication and connectivity between the executive agency and the Ministry.
2) Product departmentalization - Grouping activities by product line. Tasks can also be grouped according to a specific product or service, thus placing all activities related to the product or the service under one manager. Each major product area in the corporation is under the authority of a senior manager who is specialist in, and is responsible for, everything related to the product line.
3) Customer departmentalization - Grouping activities on the basis of common customers or types of customers. Jobs may be grouped according to the type of customer served by the organization. The assumption is that customers in each department have a common set of problems and needs that can best be met by specialists. The sales activities in an office supply firm can be broken down into three departments that serve retail, wholesale and government accounts.
4) Geographic departmentalization - Grouping activities on the basis of territory. If an organization's customers are geographically dispersed, it can group jobs based on geography.
5) Process departmentalization - Grouping activities on the basis of product or service or customer flow. Because each process requires different skills, process departmentalization allows homogeneous activities to be categorized. For example, the applicants might need to go through several departments namely validation, licensing and treasury, before receiving the driver’s license.
Owing to the complexity of tasks and the competitive environment in which organisations operate, they often use a combination of the above-mentioned methods in departmentalization.
3) CORPORATION:
It is an organisational arrangement that owes its existence to some legislative instrument under which it has been created. That means it may or may not be present at the time of the constitution enactment(else it would be called a constitutional body) but was created later for a specific purpose by an act of parliament under a current govt. It is a business entity(an organisation or department or a company involved in the activity of buying and selling goods and services and earning money) and this arrangement is mostly found in areas where economic development is seen as a challenge or technological level has been a need. These corporations are granted the necessary discretion and autonomy in taking decisions and implementation and it helps the five year plans in being a success.It is controlled by the State/govt and helps manage the country's resources as well as allocate them correctly to the relevant plans and departments for utilisation for the welfare of the people.
A corporation is a legal entity who is seen as a legal person where all the individuals working in it are together called the corporation and this corporation just like a person has natural rights having his/her own identity can be sued and can sue in a court of law. It can acquire assets in its name and is seen acting as a separate,well defined cost or profit centre of the govt. The overall policy on how to run these corporations comes as per the govt. mandate but day to day operations regarding the same to achieve the goals and objectives are free from political stranglehold.
A good example here will be the Municipal Corporations which are created by an act of parliament (Corporations Act of 1835 of Panchayati Raj system which mainly deals in providing essential services in every small town as well as village of a district/city) and takes care,that is floats tenders for service deals to private as well as govt. suppliers and once the service provider is selected through the procedure specified for the same provides services of Water supply,Hospitals,Roads,Street lighting,Drainage,Solid waste,Fire brigades,Market places and Records of births and deaths in the district/city concerned under the supervision and direction of the Municipal Corporation. In matters of financial management they have been given sufficient autonomy too and its sources of income are taxes on water, houses, markets, entertainment and vehicles paid by residents of the town and grants from the state government.
4) COMPANY:
It is an organisational arrangement created for managing functions related to some 'commercial' area or job. It is also a legal entity/person competent to enter into contract and can be sued as well as sue and acquire assets in its name. It is a govt business company and performs commercial functions and operates according to market factors. It is started off with a corpus or principal business capital to start off with and then it is supposed carry out its business and earn profits for the government which will then be used for the benefit of the people through plan money. It can raise loans,public capital from various sources like IPO's,etc. It will have a liability created limited to its corpus or its assets that have been acquired by it during the period of its operation. Company is more market oriented as compared to corporations. A company is formed for profit earning and economic self sufficiency in areas where pvt sector would not like to enter due to heavy investment or high amount of risk like Railways,mining,etc whereas a corporation is basically created for developmental activities and is not concerned about profit or loss but collects its earnings as taxes in return for the services provided.These companies have been formed under the Indian Companies Act 1956.
List of government companies are: http://en.wikipedia.org/wiki/Category:Government-owned_companies_of_India
6) COMMITTEE:
It is a form of association where a group is created of a particular organisation or field to represent a larger organisation and either make decisions or gather information and analysis for it and its betterment. It frees the overall organisation of certain areas like analysis and deliberations and lets them focus on the business aspect and the core areas for which that organisation was made.These committees too can be ad-hoc as well as standing in nature.
Examples of committees: Haj Committee of India, Genetic Engineering Approval Committee (GEAC) which are standing committees, Alagh Commitee,Public Accounts Committee(standing),etc.
7) COUNCIL:
It is a form of organisation where in various parts of the whole body or organisation have been provided equal representation in decision making process and helps in building consensus(group acceptable decision). Examples: National Development Council,Inter-State Council,South Zone Council,Council Of Ministers(who are collectively responsible for every decision).
8) AD-HOC AND ADVISORY BODIES:
The political executive as and when required to aid them in discharging their functions with all detail and correctly need to appoint various bodies on ad hoc or advisory capacity. Ad-hoc departments are created when there is a an urgent need for focus and resolution of a certain function where specialists are appointed to comprise a unit and work only on that and provide a fast and correct solution. Once that function is over these ad-hoc bodies cease to exist and the members are either employed in some other department or sent back to the departments they came form.
Advisory bodies are created in regard to various functional areas as and when executive is of the opinion that a deliberation and thorough analysis by specialists shall be useful before pursuing implementation of policy in a given issue/area. These advisory bodies may be created by the Cabinet Secy,Prime Minister's Office or any other appropriate levels as seemed fit by the executive.
9) HEADQUARTER AND FIELD RELATIONSHIP:
HQ refers to an Establishment that is meant to direct,supervise and monitor the execution of public policy which is done through the field(Area of physical activity) Establishments created at the specific geographical locations for the same. HQ and Field Establishments(FE) should always have a clear communication as that is the basic needed for smooth implementation of policies. HQ act as the head whereas the Field Establishments act as the hands. Headquarters receive instructions regarding policy directly from the higher authorities and it is passed on to the Field Establishments in communication understandable to them for implementing the same.
The following measures have been suggested to ensure the smooth functioning of these organisations and the proper implementation of public policy through them:
1) Effective and fast communication channels should be established between Field Establishments and headquarters.
2) HQ officials while giving instructions/directions to FE should provide sufficient detail so that FE's can easily understand and comprehend the same.
3) HQ officials should take into consideration the inputs provided by the FE before reaching conclusions in regards to programme schedules required to be implemented at the field levels as the FE have the ground knowledge of the situation.
4) Training programmes shall be organised so as to improve the competence of officials at Field level so that orders could be effectively implemented by them.
5) HQ officials shall carry out physical inspections in the FE from time to time to gather first hand information on the discrepancies and ground realities existing there and suitable actions required.
6) FE officials shall be provided with opportunities like seminars/conferences,etc at the HQ level in order to be aware of the core components of the policy programme and also get the necessary direction through which implementation could be improved.
10) REGULATORY AUTHORITIES:
These are Establishments which are created by govt. with the objective of regulating (controlling and monitoring) the functioning of organisations taking care of a special area/job. It provides the basic framework and facilities for the functioning of all those institutions/organisations which are carrying out enterprise/business in that particular field. It provides transparency. These bodies are highly significant in the time of Liberalisation,privatisation and globalisation since private players/companies are also entering the country and setting up business. These bodies carry out detailed research in regards to those areas/business areas that they have been set up for and help the govt. establish necessary norms,guidelines,rules and regulations so that quality and quantity,both could be regulated in regards to the production of goods and services in the concerned area of business/enterprise. It helps stabilise the technology as well as pricing for the goods and services provided that is reasonable to the people. It is through these regulatory bodies that a proper check is kept on govt as well as pvt enterprises in the market and thus leading to successful policy and planning implementation.
Examples: Securities and Exchange Board Of India,Telecom Regulatory Authority Of India.
11) PUBLIC - PRIVATE PARTNERSHIP:
It is a model of enterprise where both public and private entities are seen coming into an association to provide facilities for the production of goods and services. PPP( Public - Private Partnership) is seen as a model under which the govt. invests with capital/service and infrastructure and the private player provides the goods and services through its efficient and economic mechanisms of production and deliver in a competitive and timely manner under the guidelines established in their contract. This partnership helps in achieving the planned process of development. Thus,it helps in bringing together the private companies in working towards the goals of democracy and not just profit. So,this mechanism brings together the mechanism of transparency from the govt side as well as efficiency and economy through the pvt organisations side.
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The next blog will cover:
Accountability and Control: Concepts of accountability and control;
Legislative, Executive and Judicial control
over administration; Citizen and Administration;
Role of media, interest groups, voluntary
organizations; Civil society;
Citizen’s Charters; Right to Information;
Social audit.
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This segment is to discuss Organisations,its theories,structures and forms(which are):-
Ministries and departments.
Corporations.
Companies.
Boards and Commissions.
Ad- Hoc and Advisory Bodies.
Headquarters and Field relationships.
Regulatory Authorities .
Public - Private Partnerships.
We begin.
ORGANISATION :
First and foremost,to define an Organisation,it is the framework or system through which Administration's objectives and guidelines are implemented and executed to achievement by the management. It facilitates the proper utilisation of men,material and money for the achievement of goals. It is a set or system of interacting elements each having a special function,act,office or relation to the organisation independently but work together in coordination and as a whole to achieve their as well as the organisation's goals and objectives.
Family is a primary unit of organisation where the family members work together to achieve the objective of the family that is well being and safety,etc. Similarly,in a business or governmental organisations,all departments and ministries and offices and employees work together as per the rules and regulations of the organisation in tandem to achieve the organisational goals and objectives and in the process their goals and objectives as well.
SYSTEMS THEORY OF ORGANISATION:
This approach/theory of an Organisation was first developed for physics in the structure of a molecule where it was found that atoms of an element joined together in a systematic manner or like a system to build a molecule of that element.It then later was found suitable to and extended to political science,public administration,management,etc as a modern approach to understanding administration and similar organisations. David Easton and Chester Barnard were the main proponents and contributors of this theory who analysed political as well as administrative systems minutely and the way they are structured and function and derived best possible ways of functioning for the same through their studies.
A system is a set of interconnected elements that function together in tandem to make up the whole being. So, a Systems approach administration is described as a system comprising subsystem,structure,people,action and interaction that enable it(administration or organisation) to perform certain functions. Every system influences its subsystems and is also influenced by its subsystems. This system rejects the closed system approach of an organisation or Classical theory of organisation where it was stated that an organisation is independent of the environment and society and is not connected to it. It states that the organisation and environment work together and have frequent exchanges in order to adjust and in the end there is homoeostasis ( stable state of equilibrium).It also rejects the theory of the Classical theory of taking decisions which are best and there is one best way of doing things,it rather supports the concept of 'equifinality(the property of allowing or having the same effect or result from different events' that means that anything done or decision taken in an organisation,no matter how it is done but the intention should be the same, of getting the work done and achieving the goal,then the end results will always be the same or as desired.
This approach/theory takes a holistic approach,that is it takes into account and studies all elements of an organisation like hierarchy and communications,personnel and procedures,informal as well as formal organisations and the interface(connection) between organisations and the environment It states that organisations and the environment it functions in are interdependent and should be analysed together and how they influence each other. This approach might not lead to a solution of all administrative problems but it surely lends help to generate awareness of the limitation and weaknesses of formal administration in tackling programmes of social and behavioural change. And this systems approach becomes all the modern in today's times where organisations are growing and expanding humongously and are transcending national boundaries with product diversification and growing complexity of operations functioning within them and so it is required to integrate them all within a framework/system for its systematic functioning. It is used as a criticism towards the closed system model of Max Weber's Ideal Bureaucracy theory.
David Easton says policy making and decision making are closely related & adopts the systems approach to analyse public policy making and implementation process in a dynamic political system and the cycle that is involved in it.
This diagram will help understand it in a detailed manner:
CONTINGENCY THEORY OF ORGANISATION:
Contingency(to make suitable arrangements for the future for an anticipated (most often)troublesome situation that might occur) theory is a class of behavioural theory that claims that there is no best way to organize a corporation, to lead a company, or to make decisions. Instead, the optimal course of action is contingent (dependent) upon the internal and external situation.
Some important contingencies(dependent factors for solving future issues) for companies that need to be strengthened are listed below :
1. Technology
2. Suppliers and distributors
3. Consumer interest groups
4. Customers and competitors
5. Government
6. Unions .
The main ideas underlying contingency theory in a nutshell:
1)Organizations are open systems that need careful management to satisfy and balance internal needs and to adapt to environmental circumstances
2)There is no one best way of organizing. The appropriate form depends on the kind of task or environment and situation one is dealing with.
3)Management must be concerned, above all else, with achieving alignments and good fits.
4)Different types or species of organizations are needed in different types of environments.
William Richard Scott describes contingency theory in the following manner: "The best way to organize depends on the nature of the environment to which the organization must relate and adjust to".
TYPES OF ORGANISATIONS :
FORMAL ORGANISATIONS:
An organization that is established as a means for achieving defined objectives has been referred to as a formal organization. Its design specifies how goals are subdivided and reflected in subdivisions of the organization. Divisions, departments, sections, positions, jobs, and tasks make up this work structure. Thus, the formal organization is expected to behave impersonally in regard to relationships with clients or with its members. According to Weber's definition, entry and subsequent advancement is by merit or seniority. Each employee receives a salary and enjoys a degree of tenure that safeguards him from the arbitrary influence of superiors or of powerful clients. The higher his position in the hierarchy, the greater his presumed expertise in adjudicating problems that may arise in the course of the work carried out at lower levels of the organization. It is this bureaucratic structure that forms the basis for the appointment of heads or chiefs of administrative subdivisions in the organization and endows them with the authority attached to their position.
INFORMAL ORGANISATIONS:
The informal organization is the interlocking social structure that governs how people work together in practice. It is the aggregate of behaviours, interactions, norms, personal and professional connections through which work gets done and relationships are built among people who share a common organizational affiliation or cluster of affiliations. It consists of a dynamic set of personal relationships, social networks, communities of common interest, and emotional sources of motivation. The informal organization evolves organically and spontaneously in response to changes in the work environment, the flux of people through its porous boundaries, and the complex social dynamics of its members.
Informal organisations are always found in formal organisations and they are interdependent. Formal organisation is concerned with work only and does not give place to personal connections,so an employee will always want to let out and so it comes out in the form of personal connections between employees through sharing the same goals and motivations in life,parties organised by organisations regularly help these connections and this benefits the work of these employees immensely,as they work with more rigour to be up to their counterparts in status and recognitions as well as economically. So, within every formal organisation one will find an informal organisation,similarly,in every informal organisation you will find its member also observing some rules and regulations of that group membership. So,they are interrelated and if one is shut out,the other will necessarily disintegrate.
STRUCTURE OF ORGANISATIONS OR ORGANISATIONAL STRUCTURE:
Structure as per the dictionary means : The way in which the parts of a system or organisation are arranged or organised. Organisational structure is a system of task in which work of the organization is done. Structure of an organisation determines its form and function and how its parts(different departments,offices,etc) fit together to form the whole. Organisational structure's goal is to coordinate action and activities and also to identify the tasks of the employees to achieve the organisational goals and objectives.
Organisational charts,rules and regulations,decentralisation and centralisation,standard operating procedures,responsibility and authority,etc are taken into consideration while studying the structure of an organisation.
ORGANISATIONAL STRUCTURE TYPES:
Pre-bureaucratic structures:
Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This structure is most common in smaller organizations and is best used to solve simple tasks. The structure is totally centralized. The strategic leader makes all key decisions and most communication is done by one on one conversations. It is particularly useful for new (entrepreneurial) business as it enables the founder to control growth and development.
They are usually based on traditional domination or charismatic domination in the sense of Max Weber's tripartite classification of authority
Bureaucratic structures:
Weber gives the analogy that “the fully developed bureaucratic mechanism compares with other organizations exactly as does the machine compare with the non-mechanical modes of production. Precision, speed, unambiguity,strict subordination, reduction of friction and of material and personal costs- these are raised to the optimum point in the strictly bureaucratic administration.” Bureaucratic structures have a certain degree of standardization. They are better suited for more complex or larger scale organizations, usually adopting a tall structure. The tension between bureaucratic structures and non-bureaucratic is echoed in Burns and Stalker's distinction between mechanistic and organic structures.
The Weberian characteristics of bureaucracy are:
- Clear defined roles and responsibilities
- A hierarchical structure
- Respect for merit.
Post-bureaucratic:
Another smaller group of theorists have developed the theory of the Post-Bureaucratic Organization., provide a detailed discussion which attempts to describe an organization that is fundamentally not bureaucratic. Charles Heckscher has developed an ideal type, the post-bureaucratic organization, in which decisions are based on dialogue and consensus rather than authority and command, the organization is a network rather than a hierarchy, open at the boundaries (in direct contrast to culture management); there is an emphasis on meta-decision making rules rather than decision making rules. This sort of horizontal decision making by consensus model is often used in housing cooperatives, other cooperatives and when running a non-profit or community organization. It is used in order to encourage participation and help to empower people who normally experience oppression in groups.
Still other theorists are developing a resurgence of interest in complexity theory and organizations, and have focused on how simple structures can be used to engender organizational adaptations. For instance, Miner studied how simple structures could be used to generate improvisational outcomes in product development. Their study makes links to simple structures and improviser learning. Other scholars such as Jan Rivkin and Sigglekow,and Nelson Repenning revive an older interest in how structure and strategy relate in dynamic environments.
Functional structure:
As a whole, a functional organization is best suited as a producer of standardized goods and services at large volume and low cost. Coordination and specialization of tasks are centralized in a functional structure, which makes producing a limited amount of products or services efficient and predictable. Moreover, efficiencies can further be realized as functional organizations integrate their activities vertically so that products are sold and distributed quickly and at low cost.For instance, a small business could make components used in production of its products instead of buying them. This benefits the organization and employees faiths.
Divisional structure:
Each division may have its own sales, engineering and marketing departments.
Matrix structure:
Matrix structure is amongst the purest of organizational structures, a simple lattice emulating order and regularity demonstrated in nature is:
1)Weak/Functional Matrix: A project manager with only limited authority is assigned to oversee the cross- functional aspects of the project. The functional managers maintain control over their resources and project areas.
2) Balanced/Functional Matrix: A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers. It brings the best aspects of functional and projectized organizations. However, this is the most difficult system to maintain as the sharing power is delicate proposition.
3)Strong/Project Matrix: A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources as needed.
Organizational circle: moving back to flat:-
Often, it would result in bureaucracy, the most prevalent structure in the past. It is still, however, relevant in former Soviet Republics, China, and most governmental organizations all over the world. . Its design combines functional and product based divisions, with employees reporting to two heads.Creating a team spirit, the company empowers employees to make their own decisions and train them to develop both hard and soft skills.
This structure can be seen as a complex form of the matrix, as it maintains coordination among products, functions and geographic areas.
In general, over the last decade, it has become increasingly clear that through the forces of globalization, competition and more demanding customers, the structure of many companies has become flatter, less hierarchical, more fluid and even virtual.
Team:
Network:
Virtual:
In the 21st century, even though most, if not all, organizations are not of a pure hierarchical structure, many managers are still blind-sided to the existence of the flat community structure within their organizations.
The business firm is no longer just a place where people come to work. For most of the employees, the firm confers on them that sense of belonging and identity- the firm has become their “village”, their community. The business firm of the 21st century is not just a hierarchy which ensures maximum efficiency and profit; it is also the community where people belong to and grow together- where their affective and innovative needs are met.
Lim, Griffiths, and Sambrook developed the Hierarchy-Community Phenotype Model of Organizational Structure borrowing from the concept of Phenotype from genetics. "A phenotype refers to the observable characteristics of an organism. It results from the expression of an organism’s genes and the influence of the environment. The expression of an organism’s genes is usually determined by pairs of alleles. Alleles are different forms of a gene. In our model, each employee’s formal, hierarchical participation and informal, community participation within the organization, as influenced by his or her environment, contributes to the overall observable characteristics (phenotype) of the organization. In other words, just as all the pair of alleles within the genetic material of an organism determines the physical characteristics of the organism, the combined expressions of all the employees’ formal hierarchical and informal community participation within an organization give rise to the organizational structure. Due to the vast potentially different combination of the employees’ formal hierarchical and informal community participation, each organization is therefore a unique phenotype along a spectrum between a pure hierarchy and a pure community (flat) organizational structure."
FORMS OF ORGANISATIONS:
Different types of organisations are seen in the govt set up discharging functions of a varied nature and varied discretion and so that all are done smoothly. Appropriate autonomy is given to them as per the requirement.
1) MINISTRY/MINISTRIES:
It is a term used to refer to the office of the minister/political executive designated with a portfolio to direct,supervise,monitor,control and function in a specific area. It is highly significant and ensures democratic implementation of public policy. It is headed by a political executive and day to day activities and operations are taken care of by the administrators who are the permanent executive or the bureaucrats. So it is headed by a politician so that he handles it democratically because since he is elected by the people therefore he will always be cautious of the people'e choices and needs and will make the ministry work towards achieving that with all rigour as his claim to power and this ministry is dependent on that and this is why he was chosen. Ministry is the way of organising business related to a specific area under the direction of meta policy(bigger/broader policy).
2) DEPARTMENT:
A department is a part of a larger organization with a specific responsibility. It is that fundamental or basic arrangement through which the policy process could be organised in regards to formulation as well as implementation activities of policies. It functions under a Minister or can be independent of any ministry and function on its autonomously directly under the Prime Minister himself,like the Department of Atomic Energy is directly under the Prime Minister and he takes all the decisions. It could not be merged under any other Ministry like the Ministry of New and Renewable Energy,etc because it needed special attention with specialised people in that field and rapid action to approve decisions and research files to implement,therefore it was created for smooth functioning considering the urgency of the power situation in India as a growing nation The department is responsible for nuclear technology, including nuclear power and research.. Where a department or comes under a Ministry ( ex. the Ministry of agriculture has many departments under it) then it is headed by (politically headed) the Minister in charge of that portfolio but commissioned (administrative head) and day to day activities are headed by a senior bureaucrat having sufficient experience. It helps necessary communication and connectivity between the executive agency and the Ministry.
A Few Common Types of Departmentalization:
1) Functional departmentalization - Grouping activities by functions performed. Activities can be grouped according to function (work being done) to pursue economies of scale by placing employees with shared skills and knowledge into departments for example human resources, IT, accounting, manufacturing, logistics, and engineering. Functional departmentalization can be used in all types of organizations.2) Product departmentalization - Grouping activities by product line. Tasks can also be grouped according to a specific product or service, thus placing all activities related to the product or the service under one manager. Each major product area in the corporation is under the authority of a senior manager who is specialist in, and is responsible for, everything related to the product line.
3) Customer departmentalization - Grouping activities on the basis of common customers or types of customers. Jobs may be grouped according to the type of customer served by the organization. The assumption is that customers in each department have a common set of problems and needs that can best be met by specialists. The sales activities in an office supply firm can be broken down into three departments that serve retail, wholesale and government accounts.
4) Geographic departmentalization - Grouping activities on the basis of territory. If an organization's customers are geographically dispersed, it can group jobs based on geography.
5) Process departmentalization - Grouping activities on the basis of product or service or customer flow. Because each process requires different skills, process departmentalization allows homogeneous activities to be categorized. For example, the applicants might need to go through several departments namely validation, licensing and treasury, before receiving the driver’s license.
Owing to the complexity of tasks and the competitive environment in which organisations operate, they often use a combination of the above-mentioned methods in departmentalization.
3) CORPORATION:
It is an organisational arrangement that owes its existence to some legislative instrument under which it has been created. That means it may or may not be present at the time of the constitution enactment(else it would be called a constitutional body) but was created later for a specific purpose by an act of parliament under a current govt. It is a business entity(an organisation or department or a company involved in the activity of buying and selling goods and services and earning money) and this arrangement is mostly found in areas where economic development is seen as a challenge or technological level has been a need. These corporations are granted the necessary discretion and autonomy in taking decisions and implementation and it helps the five year plans in being a success.It is controlled by the State/govt and helps manage the country's resources as well as allocate them correctly to the relevant plans and departments for utilisation for the welfare of the people.
A corporation is a legal entity who is seen as a legal person where all the individuals working in it are together called the corporation and this corporation just like a person has natural rights having his/her own identity can be sued and can sue in a court of law. It can acquire assets in its name and is seen acting as a separate,well defined cost or profit centre of the govt. The overall policy on how to run these corporations comes as per the govt. mandate but day to day operations regarding the same to achieve the goals and objectives are free from political stranglehold.
A good example here will be the Municipal Corporations which are created by an act of parliament (Corporations Act of 1835 of Panchayati Raj system which mainly deals in providing essential services in every small town as well as village of a district/city) and takes care,that is floats tenders for service deals to private as well as govt. suppliers and once the service provider is selected through the procedure specified for the same provides services of Water supply,Hospitals,Roads,Street lighting,Drainage,Solid waste,Fire brigades,Market places and Records of births and deaths in the district/city concerned under the supervision and direction of the Municipal Corporation. In matters of financial management they have been given sufficient autonomy too and its sources of income are taxes on water, houses, markets, entertainment and vehicles paid by residents of the town and grants from the state government.
4) COMPANY:
It is an organisational arrangement created for managing functions related to some 'commercial' area or job. It is also a legal entity/person competent to enter into contract and can be sued as well as sue and acquire assets in its name. It is a govt business company and performs commercial functions and operates according to market factors. It is started off with a corpus or principal business capital to start off with and then it is supposed carry out its business and earn profits for the government which will then be used for the benefit of the people through plan money. It can raise loans,public capital from various sources like IPO's,etc. It will have a liability created limited to its corpus or its assets that have been acquired by it during the period of its operation. Company is more market oriented as compared to corporations. A company is formed for profit earning and economic self sufficiency in areas where pvt sector would not like to enter due to heavy investment or high amount of risk like Railways,mining,etc whereas a corporation is basically created for developmental activities and is not concerned about profit or loss but collects its earnings as taxes in return for the services provided.These companies have been formed under the Indian Companies Act 1956.
List of government companies are: http://en.wikipedia.org/wiki/Category:Government-owned_companies_of_India
5) BOARDS
AND COMMISSIONS:
Boards and Commissions refer to such organisational units which are created by the executive for having deliberations(analysis and discussions) by specialists in that field. Politically impartial decisions and recommendations are achieved here as these organisations allow only the services of specialists and people having high standards of integrity(honest and moral). The decisions taken here are mostly rational(based on reason rather than values or emotions) since people taking the decisions here are complete specialists in the respective field. These Boards and Commissions are appointed by the govt. on an ad-hoc basis (made for a particular purpose or need and not planned in advance,urgent) as well as Standing basis (permanent). They hugely benefit the govt. as well as the people through their impartial and rational decisions and recommendations. In some areas they just have advisory functions like advising or recommending the govt on certain specific issues that the board or commission has been made for and in other situations there are boards and commissions that have been given substantive and executive powers as well.
Example of an advisory Board / Commission - Administrative Reforms Commission(Ad-hoc) & Law Commission(Standing) and Atomic Energy Regulatory Board,etc.
Example of substantive/functional commission and board: Election Commission,Union Public Service Commission,etc.
It is a form of association where a group is created of a particular organisation or field to represent a larger organisation and either make decisions or gather information and analysis for it and its betterment. It frees the overall organisation of certain areas like analysis and deliberations and lets them focus on the business aspect and the core areas for which that organisation was made.These committees too can be ad-hoc as well as standing in nature.
Examples of committees: Haj Committee of India, Genetic Engineering Approval Committee (GEAC) which are standing committees, Alagh Commitee,Public Accounts Committee(standing),etc.
It is a form of organisation where in various parts of the whole body or organisation have been provided equal representation in decision making process and helps in building consensus(group acceptable decision). Examples: National Development Council,Inter-State Council,South Zone Council,Council Of Ministers(who are collectively responsible for every decision).
8) AD-HOC AND ADVISORY BODIES:
The political executive as and when required to aid them in discharging their functions with all detail and correctly need to appoint various bodies on ad hoc or advisory capacity. Ad-hoc departments are created when there is a an urgent need for focus and resolution of a certain function where specialists are appointed to comprise a unit and work only on that and provide a fast and correct solution. Once that function is over these ad-hoc bodies cease to exist and the members are either employed in some other department or sent back to the departments they came form.
Advisory bodies are created in regard to various functional areas as and when executive is of the opinion that a deliberation and thorough analysis by specialists shall be useful before pursuing implementation of policy in a given issue/area. These advisory bodies may be created by the Cabinet Secy,Prime Minister's Office or any other appropriate levels as seemed fit by the executive.
9) HEADQUARTER AND FIELD RELATIONSHIP:
HQ refers to an Establishment that is meant to direct,supervise and monitor the execution of public policy which is done through the field(Area of physical activity) Establishments created at the specific geographical locations for the same. HQ and Field Establishments(FE) should always have a clear communication as that is the basic needed for smooth implementation of policies. HQ act as the head whereas the Field Establishments act as the hands. Headquarters receive instructions regarding policy directly from the higher authorities and it is passed on to the Field Establishments in communication understandable to them for implementing the same.
The following measures have been suggested to ensure the smooth functioning of these organisations and the proper implementation of public policy through them:
1) Effective and fast communication channels should be established between Field Establishments and headquarters.
2) HQ officials while giving instructions/directions to FE should provide sufficient detail so that FE's can easily understand and comprehend the same.
3) HQ officials should take into consideration the inputs provided by the FE before reaching conclusions in regards to programme schedules required to be implemented at the field levels as the FE have the ground knowledge of the situation.
4) Training programmes shall be organised so as to improve the competence of officials at Field level so that orders could be effectively implemented by them.
5) HQ officials shall carry out physical inspections in the FE from time to time to gather first hand information on the discrepancies and ground realities existing there and suitable actions required.
6) FE officials shall be provided with opportunities like seminars/conferences,etc at the HQ level in order to be aware of the core components of the policy programme and also get the necessary direction through which implementation could be improved.
10) REGULATORY AUTHORITIES:
These are Establishments which are created by govt. with the objective of regulating (controlling and monitoring) the functioning of organisations taking care of a special area/job. It provides the basic framework and facilities for the functioning of all those institutions/organisations which are carrying out enterprise/business in that particular field. It provides transparency. These bodies are highly significant in the time of Liberalisation,privatisation and globalisation since private players/companies are also entering the country and setting up business. These bodies carry out detailed research in regards to those areas/business areas that they have been set up for and help the govt. establish necessary norms,guidelines,rules and regulations so that quality and quantity,both could be regulated in regards to the production of goods and services in the concerned area of business/enterprise. It helps stabilise the technology as well as pricing for the goods and services provided that is reasonable to the people. It is through these regulatory bodies that a proper check is kept on govt as well as pvt enterprises in the market and thus leading to successful policy and planning implementation.
Examples: Securities and Exchange Board Of India,Telecom Regulatory Authority Of India.
11) PUBLIC - PRIVATE PARTNERSHIP:
It is a model of enterprise where both public and private entities are seen coming into an association to provide facilities for the production of goods and services. PPP( Public - Private Partnership) is seen as a model under which the govt. invests with capital/service and infrastructure and the private player provides the goods and services through its efficient and economic mechanisms of production and deliver in a competitive and timely manner under the guidelines established in their contract. This partnership helps in achieving the planned process of development. Thus,it helps in bringing together the private companies in working towards the goals of democracy and not just profit. So,this mechanism brings together the mechanism of transparency from the govt side as well as efficiency and economy through the pvt organisations side.
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The next blog will cover:
Accountability and Control: Concepts of accountability and control;
Legislative, Executive and Judicial control
over administration; Citizen and Administration;
Role of media, interest groups, voluntary
organizations; Civil society;
Citizen’s Charters; Right to Information;
Social audit.
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