Policy Board

*A policy board is generally defined as a wisdom board and is more legislative, supervisory and advisory in character. The members of such board in its pure form have no functional responsibility. They are drawn from outside the organization and exercise a sort of collective supervision. *Thus, policy boards comprise men, full time or part-time, without responsibility for any specialised functions of an executive head. Such a board is supervisory in nature and by and large concerned with matters of general policy. *Features : Full-time or part-time members both may be appointed on the Board. *The functioning of the board is of supervisory nature and concerns itself merely with matters of general policy and not on operational details. *The members are not supposed to be experts or specialists in a particular branch or line of operation in the enterprise *Generally believes in collective supervision over the organisation. Members of the board are expected to take a detached view of the managerial affairs, to consider the issues objectively to make policy decisions.

Policy Board

*Merits : The board generally takes an independent and critical view of management of the enterprise. Not being involved in management, it can take a more objective view of the managers performance. *The members of a policy board not immersed in detail are perhaps better able to see the picture as a whole and to take board decisions (Gorwala Committee) *The board watches the affairs of the company / enterprise from outside with a more comprehensive outlook and large vision and then formulates or modifies the policy. *Suitable for small undertakings because operational areas are quite limited Demerits : In a policy board, those who are responsible for the formulation of policy are not responsible for carrying it out. If the board itself is to carry out the policy formulated by it, it would probably be more careful and realistic than when execution is the responsibility of some one *In a policy board, it is difficult to fix any individual responsibility for any adverse result *Due to Non-specialised character of the board there is every possibility that sound technical advise may be rejected in the boards meeting.

0100090000037800000002001c000000000004000 00003010800050000000b0200000000050000000 c02cf0ce713040000002e0118001c000000fb021 000070000000000bc02000000000102022253797 374656d000ce7130000e1d10000985c120004ee8

339d04c17000c020000040000002d01000004000 000020101001c000000fb029cff00000000000090 01000000000440001254696d6573204e65772052 6f6d616e00000000000000000000000000000000 00040000002d010100050000000902000000020d 000000320a5900d80101000400d8010000c415cb 0c20362d00040000002d010000030000000000

Functional Board
*Meaning : A functional Board consists predominantly of professional full-time managers drawn from within the enterprise, each having a distinct top level responsibility within the organisation. *Features : It is constituted with the membership of fulltime specialist. These members are generally holding the status of *chairman or head of a particular functional area in the organisation. *Members of the board are selected on the basis of their specialised knowledge and experience in a particular branch of activity viz, Finance, personnel, production, materials, planning, marketing, R&D Etc. *Members of the board have defined responsibilities for specific functional areas and have to work for the targets assigned to them. *They have a joint responsibility at the board level. In other words, members are jointly responsible for the decision taken in the board meeting. They have functional responsibility as a functional head. *Being a full-time members, they have more effective control, knowledge and influence on the operations of the enterprise.

Functional Boards
Merits : The Board is useful because the members are responsible for policy formulation and their execution at the same level and at the same time. Ensures better co-ordination at the board level. *Encourages a sense of responsibility because individual member may be held strictly accountable for the performance of his department or area. *The board ensures better supervision & closer contact between top management and the point of actual operation. Demerits : The Board often fails to take the macro approach towards the working of an enterprise. *Functional experts are at logger heads. Refuse to be considerate and accommodating lack team work and harmony necessary for the successful functioning of such board.

Mixed Boards
*Generally, policy boards and functional boards are not constituted in their purest form. Thus a mixed board is being preferred by the public enterprises. *The mixed board consists of part-time and whole-time members. There is a blend of full-time and part-time members, the former having specific fields of responsibility without being the heads of the department and the latter being men of experience to bring fresh perspectives in the organisation with a detached view. *The mixed board, by nature is policy-cum-functional board.

0100090000037800000002001c000000000004000000 03010800050000000b0200000000050000000c02cf0c e713040000002e0118001c000000fb02100007000000 0000bc02000000000102022253797374656d000ce713 0000e1d10000985c120004ee8339d04c17000c020000 040000002d01000004000000020101001c000000fb02 9cff0000000000009001000000000440001254696d657 3204e657720526f6d616e00000000000000000000000 00000000000040000002d01010005000000090200000 0020d000000320a5900d80101000400d8010000c415c b0c20362d00040000002d010000030000000000

COAL INDIA LIMITED

INDIAN OIL CORPORATION LIMITED

0100090000037800000002001c00000000000400000003010800050000000b0200000000050000000c02cf0ce713040000002e0118001c0 00000fb021000070000000000bc02000000000102022253797374656d000ce7130000e1d10000985c120004ee8339d04c17000c02000004 0000002d01000004000000020101001c000000fb029cff0000000000009001000000000440001254696d6573204e657720526f6d616e0000 000000000000000000000000000000040000002d010100050000000902000000020d000000320a5900d80101000400d8010000c415cb0c 20362d00040000002d010000030000000000

Main features : The board is constituted with the help of parttime members as well as full-time members. Ratio of the functional members generally depends on the size and functional areas of the enterprise. *Some of the members of the board, specially part-time members, have no functional responsibilities. But full-time members have a well defined functional or departmental responsibility *Functional members are generally insiders they have to take the directors responsibilities in addition to the responsibilities of a functional head in the enterprise itself.

Professionalization of Board of Directors of PSEs

*As per the guidelines issued by DPE in March 1992, the number of Non-official part-time Directors should be at least 1/3rd of the actual strength of the board. *The guidelines also envisage that the number of Govt Directors on the boards should not be more than one-sixth of the actual strength of the board and in any case should not exceed two. *Apart from this there should be some functional directors on each board whose number could be upto 50% of the actual strength of the board. *Appointment of Non-official part-time directors on the boards of PSEs is made by the administrative ministries / departments from the panel prepared in consultation with the DPE. *As far as Navratna and Miniratna PSEs are concerned the panel of non-official part-time directors is prepared by a search committee consisting of chair (PESB), secretary (DPE), Secretary of the administrative ministry/department of the concerned PSE and four non-official members.