At that moment, the capable clergyman delegated his authority to various levels of the board for effective working and achievement of defined goals. Each arrangement concern, as well as other major decisions made by departmental organisations, is chosen by the governing service.

Nonetheless, the parliament has outlined the main arrangements for these types of endeavours.

Different persons who work in these types of undertakings are government representatives since they are directly influenced by the government. 

These activities also have an impact on state and local governments. The best examples of the departmental organisation are Indian Railways, which are managed by the rail line service, and Post and Telegraph administrations, which are run by the communication service.

Characteristics of Departmental Organisation

• The public authority is in charge of such initiatives’ administration. The venture is overseen and limited by the division’s government employees.
• Depository funds, such as venture capital and receipts, are also deposited in the public authority depository.
• It recognises genuine opposition, and government approval is required to sue the enterprises.
• Its records are also scrutinised in the same way as those of any other government agency.
• Enlistments in these divisions are based on the same norms and methods as those in public authority offices.
• The employees who operate in this type of huge corporation are subject to the same administrative rules that apply to other government divisions.

Features of departmental organization :

• Ease of formation: Forming organisations under departmental undertakings is much easier than establishing private organisations. Departmental organisations are exempt from onerous registration requirements because they are created and organised by the country’s ruling government.
• Under government control: Departmental enterprises are governed and controlled directly by the government through the appointment of a minister to this enterprise. The minister is personally responsible for departmental undertakings and is required to report to parliament.
• No separate legal entity: Departmental undertakings are not constituted as a separate legal entity from the government. They don’t have their legal authority, but they work as part of the government.
• Audit and Accounting: These undertakings are subject to the same audit and accounting requirements as other government departments. To avoid any errors, fraud, or discrepancies, all accounts are carefully managed and audited regularly.
• Not liable to public borrowing: Departmental organisations are unable to raise funding from the public or private sector. The budget allotment approved by the Indian parliament is the only source of additional funding available to these organisations. All of these types of businesses are partially or entirely owned by the government.
• Government financing: It is funded by the government’s treasury. Every activity of the departmental organisation is supported by government funds. In addition, all profits from these ventures are deposited in the government’s coffers.

Advantages of department organization : 

• Departmental undertakings are an important weapon for the government to use in advancing economic and social justice in the country. The government employs these businesses as a tool to effect social change. For example, a government can help people in far-flung rural areas flourish socially, economically, and intellectually by establishing a post office, broadcasting, and telecasting programmes.
• Direct government control: These businesses operate under direct government supervision and are affiliated with one of the government’s ministries. At the top, a minister is selected who is responsible to parliament or the state legislature for the smooth operation of these types of organisations.
• Maintaining secrecy: Another major benefit of departmental undertakings is the ability to keep crucial policy concerns secret. The government has complete authority over such institutions and can easily conceal sensitive information such as defence in the interest of the public good.
• Avoid misusing government funds: Departmental undertakings, like all other government entities, are subject to strict budgeting, accounting, and auditing. They are closely monitored, and all personnel who work on these projects are held accountable, ensuring that public funds are not misappropriated.
• The tax burden on the general public is reduced: Because all income from these departments goes directly into the government’s purse, the tax burden on the general people is reduced. Every activity is supported by the government, and all earnings are returned to the government.

Disadvantages of departmental Organisation:

• Bureaucracy’s Influence: Because of heavy red tape and bureaucracy, departmental organisations lack autonomy and initiative. Every decision must be approved by the government, which slows down the entire process. As a result, unlike other types of businesses, the departmental undertaking lacks the flexibility to conduct its operations.
• Excessive parliamentary control: It operates under a great deal of parliamentary control, which makes day-to-day operations challenging. Parliament creates all major policies and rules, which are then implemented by a minister who serves as the head of these organisations.
• Financial reliance: Departmental undertakings are financially reliant on government budget appropriations. They are unable to make long-term investment decisions that may generate cash for these organisations on their own.
• Officers working in departmental undertakings have a careless attitude toward their jobs because they are frequently transferred. The informal work attitude of employees causes a lot of operational inefficiency in these firms.
• Lack of professionalism: Civil officials employed in departmental activities lack relevant professional management skill sets, resulting in a high level of non-professionalism. Because they are afraid of being chastised by parliament or ministers, these executives cannot afford to be inventive.
• Political influence: When a departmental organisation functions, it is subjected to an excessive amount of political influence. The power balance between the ruling party and the opposition has an impact on how well it performs.

Conclusion

Departmental Organization is a classic and widely used form of government activity in several countries. The government fully organises, manages, and funds these groups.

The public authority is in charge of such initiatives’ administration. The venture is overseen and limited by the division’s government employees.

A public enterprise works as a full-fledged ministry or a major sub-division of a government department under this structure.