Question

Answer the following in detail.

Explain the Departmental Organisation and its features.

Answer 1

(A) Meaning:
Departmental organizations are the oldest form of public enterprises. These are run by Government departments headed by a minister who guides and controls the activities of the undertaking e.g. Indian Railways, an India Radio, Indian Post, Defence etc.

A Departmental organization is organized, financed and controlled by Government like any other Government department. Under this type of organization, no distinction is made between the public sector and traditional Government functions.

(B) Features of Departmental Organizations:

1. Delegation of Authority: All major policy decisions are taken by the ministry. The day-to-day working is looked after by the staff consisting of civil servants of IAS, IPS cadres.
2. Organizational Structure: The internal organizational structure is of line type. The department is headed by a minister who is responsible for the working of the department. Then there is Board of Directors or Managing Committee who are assisted by Chief Executive, Executive Assistant, Supervisory and General Staff. This is termed as bureaucracy style or military style of organisation.
3. Government Employees: The employees of a departmental organization are civil servants and they are selected through the Union Public Service Commission. Staff Selection Board, Railway Recruitment Board etc. and as such, they are treated as Government employees.
4. Financed by the Government: The funds are arranged for their operation from Government treasury. This enterprise cannot borrow money from the public without Government consent.
5. Useful for Secret: matters like defence, atomic energy, etc.
6. No Legal Status: A government department does not enjoy an independent legal status. It is dependent on the Government. It cannot be taken to court without the consent of the Government. Thus, the above are the features of Departmental Organization.
7. Government Sanction for Expansion: Public Enterprises need to take the sanction of the Government for expansion and diversification of business or for changing the policies, etc.
8. Examples of Departmental Organisation: Ordinance factories, Railways, Broadcasting, Post and Telegraph, BHEL, Indian Drug and Pharmaceuticals Ltd. Hindustan Aeronautics Ltd. Army Clothing Factory, Gun Factory and so on.
9. Run by Government: Different procedures like accounting, auditing and budgeting are at par with the Government department.
10. Managed by Government: The Departmental organization is managed by Government officials of the concerned ministry.
11. Accounting Control: The organisation is subject to accounting and audit procedures and controls as applicable to government departments or to the concerned ministry.
12. Accountability: The enterprise is funded by the government and hence the government controls its affairs. In other words, it is answerable to the Parliament.
13. No Separate Legal Entity: A Government department does not enjoy an independent legal status. It is dependent on the Government. It cannot be taken to court without the consent of the Government.