Question

Write short Notes on the following.

Demerits of Departmental organization.

Answer 1

The following are the major demerits of departmental organizations:

i. Intervention: They face intervention from the concerned ministries that control and manage them.

ii. Red-tapism: The operations of these organizations often involve red-tapism in the form of tedious paperwork and excessive regulations before the actual official action is taken.

iii. Lack flexibility: As these enterprises are strictly under the control of the ministries, they are not independent in any form of decision-making. Thus, they lack flexibility in operations.

iv. Conservative approach: They normally avoid undertaking risky projects and hence, they are said to be conservative in their approach.