A Word about Departmental Management
“Departmental form of organization is necessary for those undertakings, which are in the developing stage. It is suitable for enterprises where the growth period is long. ”
Departmental management is suitable for public utility services and strategic industry. The aim of such industries or manufacturing units is not to earn profit but to help in the development of the country by catering to the needs of common people and the nation as a whole.
Strategic industries like defense and atomic power cannot be better managed but under government control. Government manages them fully with absolutely no private intervention.
Such an enterprise is managed and controlled by the civil services of the country. The budget of the department is passed by the parliament and/or by the state governments. Audit is also done on government lines and it is seen that no kind of private activity is directly or indirectly associated with these enterprises.
The units enjoy legal immunity. Governmental sanction is necessary for suing the undertakings. These undertakings are always associated with one of the government departments.
Government is answerable to the legislature for the working of the departmental activities. It is the legislature that is the final authority that ensures that no government official tries to misuse the authority vested in him
They even provide finance to the government for initiating other social and developmental activities. It is also granted by the legislature that strategic enterprises like defense and nuclear power maintain complete secrecy in their activities in national interest.
Departmental form of organization is necessary for those undertakings, which are in the developing stage. It is suitable for enterprises where the growth period is long. However, there are certain demerits also associated with these types of institutions that are often pointed out by the private sector and the radically modern politicians.
The first is the excessive interference by the government in their activities. Civil servants tend to become mere puppets in the hand of politicians and are discouraged from implementing their original ideas for the benefit of the enterprise.
Secondly, the staff employed by such units often lacks professional people because it’s mostly the generalists that have an advantage over the specialists. Specialists have complete knowledge of their trade and so should be given preference over the generalists (civil servants).
The highly competitive world of today demands high degree of professionalism and business acumen in these units so that they can become first-rate institutions besides catering to the nation and the public in general.
Author - DeeKay
Tags - Finance, Economy
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