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Question
Attempt the following.
Merits of Departmental Organisation.
Solution
Meaning: Departmental organizations are run by the Government departments headed by a minister who guides and controls the activities of the undertaking. Merits of Departmental Organizations:
- Qualified Staff: Departmental organizations are properly managed and supervised by qualified government staff.
- Proper Use of Funds: The Departmental organizations provide public utilities or basic necessities. Government Department works under the control and supervision of the concerned ministry. Charges for misuse of funds are less in the departmental organization.
- Social Welfare: The government undertakes socio-economic activities to promote social welfare. Providing essential commodities to people at a reasonable price is the top priority of the state. Thus, socio-economic objectives are achieved With Government control.
- Public Accountability: The concerned minister in charge of the government organisation is answerable to the Parliament or Assembly. The elected representatives of people can raise the question about the working of these enterprises on behalf of the public at large.
- Maintain Secrecy: In matters of strategic, national importance, secrecy is essential and confidentiality can be maintained in certain business activities such as defence deals, atomic plants, drugs, and pharmaceuticals, etc.
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| Group ‘A’ | Group ‘B | ||
| A) | BHEL | 1) | Special Legislature |
| B) | Statutory Corporation | 2) | 49% paid up capital by govt |
| C) | Departmental Organisation | 3) | Service Motive |
| D) | Private Sector | 4) | Railway |
| E) | Public Sector | 5) | Profit Motive |
| 6) | 51% paid up capital by govt. | ||
