Public Administration.pdf

Director : Prof. Harsh Gandhar Subject Co-ordinator : Prof. Emanual Nahar Course leader : Prof. Emanual Nahar M.A. Sem. III Political Science PAPER:...

Director : Prof. Harsh Gandhar Subject Co-ordinator : Prof. Emanual Nahar Course leader : Prof. Emanual Nahar M.A. Sem. III Political Science PAPER: IV Public Administration Opt. (H) CONTENTS  Introductory letter (i)  Syllabus (ii) L. No. Title Author Page No. Unit-I 1. Meaning, Nature and scope of Public Kuldeep Singh / Dr. Emanual Nahar 1 Administration 2. Control over Administration Balbir Kumar/Ashok Kumar/ " " 7 Unit-II 3. Types of Organisational formal and Dr. Ramesh Pal/Dr. Emanual Nahar 15 Informal 4. Forms of Organization departmental Prof. Vijay Rattan/Dr. Emanual Nahar 29 Corporations and Board 5. Principles of Organisation : Hierarchy Dr. Ramesh Pal/Dr. Emanual Nahar 45 Span of control and Unity of command 6. Henri, Fayol Prof. Vijay Rattan/Dr. Emanual Nahar 62 7. Luther Gullick and lyndall Urwick Prof. Vijay Rattan/Dr. Emanual Nahar 72 8. Personnel Administration: Meaning and Dr. R.K. Sharma/ Dr. Emanual Nahar 79 Significance Unit-III 9. Bureaucracy and Civil service Dr. R.K. Sharma/ Dr. Emanual Nahar 88 10. Public Finance Committee and Estimate Dr. B.B. Goel/ Dr. Emanual Nahar 99 Committee 11. Legislative Control Over Finances Dr. B.B. Goel/ Dr. Emanual Nahar 117 12. Audit in India Comptroller and Auditor Dr. B.B. Goel/ Dr. Emanual Nahar 133 General 13. Recruitment System Promotion Training Dr. R.K. Sharma/ Dr. Emanual Nahar 142 and Civil Service Neutrality  14. Financial Administration, Feature Dr. B.B. Goel/Dr. Ramesh Pal/ 166 Functions of Significance Dr. Emanual Nahar 15. Budget: Concept, Principles and Dr. B.B. Goel/Dr. Ramesh Pal/ 176 Performance Budgeting India Dr. Emanual Nahar 16. Zero Base Budgeting (ZBB) Dr. B.B. Goel/Dr. Ramesh Pal/ 188 Dr. Emanual Nahar 17. Budget preparation Authorisation and Dr. B.B. Goel/Dr. Ramesh Pal/ 198 Execution with Special Reference to Dr. Emanual Nahar India Unit-IV 18. Administrative Law; Meaning Scope and Dr. Surinder Singh/ Dr. Emanual Nahar 206 Growth Constitutional. Law and Administrative Law 19. Delegated Legislation : Need for Dr. Surinder Singh/ Dr. Emanual Nahar 218 Delegation 20. Parliamentary and Judicial Control over Dr. Surinder Singh/ Dr. Emanual Nahar 226 Delegated Legislation 21. Administrative improvement and Reform: Dr. Surinder Singh/ Dr. Emanual Nahar 239 Lokpal in India ; Lokayukat 22. Administrative Tribunals : Emergence Dr. Surinder Singh/ Dr. Emanual Nahar 251 and Significance of Administrative Tribunals Vetter: Prof. Emanual Nahar E-mail of Department - [email protected] Phone number of Department - 0172-2534332  (i) Introductory Letter Dear Student We accord you a hearty welcome on your joining M.A. Semester-Ill Political Science, in the Centre for Distance and Online Education, Panjab University, Chandigarh. We are sure that your pursuit for higher education through distance mode will enable you to reach your cherished goals. The concept of distance teaching involves the provision of opportunities to those who, due to certain reasons, could not continue their formal education and thus, enable them to make use of their potential capabilities. The study of Public Administration as a separate subject in the Political Science has gained importance and greater significance in the modern civilized society. The success or failure of the activities of the state depends upon the proper execution of national plans and programme. No plan, how so ever good it may be, can be successful without clean, efficient and impartial administration. With the adoption of concept of a welfare-state, the function of the modem government has increased manifold. Now the state does not concern itself with the maintenance of law and order and revenue collection, only, but, it has also to look after the all round development of the people. Public Administration stabilizes the social structure and preserves human culture by setting social conflicts and by creating unity and harmony. It not only maintains and preserves the civilized social life, but, also functions as a great instrument of social change and improvement. It acts as a dynamic force in the realization of the objectives of the state policy into practice. Keeping in view the importance of this subject and the scientific and technological developments in the art of administration it was decided to provide opportunities for written material to the students of postgraduate classes. Now the extension of class based instructions to the USOL students aim at having enlightened and conscious administrative personnel who are well versed in the latest methods and procedures of public administration. We shall also send questions along with the lecture scripts in each paper. You are required to attempt two to three questions as part of response sheets in each unit/block. This will help you in getting prepared for the examination. You will find our instructional programme more involving, interesting and instructive in comparison with the conventional and formal methods. Centre for Distance and Online Education will be making arrangements for Personal Contact Programme at Chandigarh and the dates for PCPs are given in you Prospectus. This will supplement reading material in your lecture scripts. Yet another interesting component of your course is that students are exposed to the system of internal Assessment comprising 20 marks in each paper.' The (Political Science) CDOE will send you separately the questions for these assignments which are different from questions given in the response sheet. The students would be required to submit 2 assignments in each paper. The Assignments for the internal Assessment are compulsory. The CDOE would not be responsible in any manner if the student is denied any internal assessment in case she/he has failed to submit the assignments for Internal Assessment. The faculty members concerned are always there to help you. If you feel any difficulty or problems, you can contact them personally or through correspondence. However, it is suggested that you may refer your all academic enquiries to the Coordinator, Political Science (CDOE). Prof. EMANUAL NAHAR Deptt. of Pol. Science, CDOE, P.U.. Chd.  (ii) Syllabus Course XII Public Administration Option: (h) Instructions to the Paper-Setters and candidates: (i) The theory question paper will be of 80 marks and 20 marks will be for internal assessment. (ii) For private candidates, who have not been assessed earlier for internal assessment, the marks secured by them in theory paper will proportionately be increased to maximum marks of the paper in lieu of internal assessment. The paper setter must put note (ii) in the question-paper. The syllabus has been divided into four units There shall be 9 questions in all. The first question is compulsory and shall be short answer type containing 15 short questions spread over the whole syllabus to be answered in about 25 to 30 words each. The candidates are required to attempt any 10 short answer types questions carrying 20 marks i.e. 2 marks of each. Rest of the paper shall contain 4 units. Each unit shall have two questions, and the candidates shall be given internal choice i.e. attempting one question from each Unit-4 in all. Each question will carry 15 marks. Objectives: This paper will introduce students to different aspects of public administration with special reference to India. Unit-I Development of Public Administration as a discipline - Basic concepts of administration -Nature and Scope - private and public administration - control over Administration, Executive, Legislative, Judiciary. Unit-II Principles of Organization : Line & Staff Agencies Type of organization : Formal & Informal Forms of Organization; Departmental, Public Corporation and Board Unit-III Personnel Administration, Bureaucracy and Civil Service, Recruitment, Promotion, Training and Civil Service Neutrality. Financial Administration: Importance of Fiscal Management Budgetary Process in India. The Finance Ministry, Organization.and Functions, Budgetary Control - Financial Committees of Parliament - Public Accounts Committee and Estimate Committee - Audit in India; Comptroller and Auditor General. Unit-IV Administration Law, Delegated Legislation: Need for Delegation, Delegated Legislation in India; Parliamentary Control of Delegated Legislation. Administrative Tribunals: Emergence and significance of Administrative Tribunals, Judiciary and - Administrative Tribunals. Administrative Improvement and Reforms; Lok Pal and Lok Ayukta  (iii) BOOKS RECOMMENDED 1. A. Avasthi and S. : Public Administration, Lakshmi Narain Agarwal, 1966. Maheshwari 2. Administrative Reforms Commission Report on Personnel Administration (New Delhi: 2010) 3. Amitai Etzioni : Modern Organisations, Prentice Hall, 1972. 4. C.P. Bhambri : Administration in Changing Society, National, 1978. 5. C.P. Bhambri : Public Administration (Theory and Practice) Meerut: Educational Publishers. 6. Chester Barnard : The Functions of the Executive, Cambridge, 1928. 7. -do- : Public Administration (Theory and Practice) J.P. Nath & Co.. 1972. 8. Edwin B. Flippo : Principles of Personnel Management (Fourth Edition), McGraw Hill. 9. HPA : Personnel Administration-Implementing the Reforms, HPA, 1967. 10. J.S. Bhalla : Public Enterprise in U.K., U.S.A. and India, 1969. a. Kogakusha Ltd., 1976. 11. Lee, Hahn Been and : Administrative Reforms in Asia, EROPA, 1970, See Samonte, Abelardo G.(eds.) 12. M.P. Shanna & : Public Administration in Theory and Practice, Kitab B.L.Sadana Mahal, 2004. i. Mehal 2007) 13. Mohit Bhattacharya : Public Administration (Calcutta: World Press, 2000) a. Particulary J.N. Khosia "Administrative Reforms in Asia", pp. 270-286. 14. Pfiffner & Sherwood : Administrative Organisation, Prentice-Hall, 1968. a. Publishing House, 1972. 15. R.S.Milne : Concepts and Models in Public Administration, IIPA, 1966. 16. Ramesh K. Arora : Comparative Public Administration : An Ecological Perspective Associate. 17. S.L. Kaushik and Pardeep : Public Administration in India: Emerging Trends Sahni (eds.) (Allahabad : Kitab). 18. William A.Niskanen : Bureaucracy and Representative Government (Chicago: Atherton, 2007).  1 Lesson-1 MEANING, NATURE AND SCOPE OF PUBLIC ADMINISTRATION Structure Objectives Introduction Meaning of Administration Meaning of Public Administration Definitions of Public Administration Nature of Public Administration Scope of Public Administration Summary Further Readings Model Questions Objectives After reading this chapter you will be able to :  understand the meaning of Public Administration.  explain the nature and scope of Public Administration. Introduction The stage of separation of administration from politics began with the publication of Woodrow Wilson's essay "The Study of Administration" in the Political Science Quarterly in 1887. This essay laid down the foundation for separate, independent and systematic study in Public Administration. That's why Wilson is regarded as the "Father of Public Administration". Public administration is the main aspect of the administration and from last few decades, Public Administration is passing through crucial change like New Public administration, New Public Management, Good Governance, E-Governance, and Right to Information etc. Before discussing about Pubic Administration in detail, it is necessary to discuss the term administration. Meaning of Administration The term administration is a noun from the English verb 'administer' which is derived from a combination of two Latin words, 'ad' and 'ministerare' meaning 'to serve' 'to manage 'to care for' or 'to look after'. The dictionary defines administration as-'management of affairs'. Literally, the term administration means management of affairs-public or private, therefore the term administration refers to the direction and management of affairs and to the "activities of group co-operating to accomplish common goals'" The concept of administration is defined by various writers in the following ways:-  2 "Administration can be defined as the activities of group co-operating to accomplish common goals" - Herbert A. Simon "Administration is the organization and direction of human and material resources to achieve desired ends" - J.M. Pfiffner "Administration is the organisation and use of men and material to accomplish a purpose" - E. A. Niero The art of administration is the direction, co-ordination and control of many persons to achieve some purpose or objective" - L.D. White "Administration has to do with getting things done, with the accomplishment of defined objectives" - Luther Gulick The given definitions shows that administration has two essential elements, viz.- (1) a collective efforts and (2) a common purpose. Thus administration means a cooperative or collective effort of a group of people for achieving common objectives. Administration can be divided into two parts: Public administration, and Private administration, when the term refers to the activities of a club, an association, accompany or a factory. It is called "private administration" and when it refers to the activities of local, state, central government, it is called "Public administration". Here, public administration will be discussed in detail. Meaning of Public Administration Public administration is an important aspect of the broader field of the administration. It exists in the political system for the achievement or fulfillment of their goals and objectives formulated by the political decision makers. It is also known as governmental administration because the word public in public administration means 'government'. The justification for the equation of public with government is that modern society government is the only association or organization in which all the people of any given territory are included without exception. When, we proceed further and enquire what or how much of governmental activities administration includes; there are different views of the thinkers in this regard. Some of them think, administration is concerned with the whole range of governmental activities under all the three branches, the legislative, the executive and judicial while the others think it is concerned with the activities of the executive branch only. Regarding these view, some of the definition of public administration has been given as follows. Definitions of Public Administration "Public administration consist of all those operations having for their purpose the fulfillment or enforcement of public policy"- L.D. White "Public administration is detailed and systematic execution of law. Every particular application of law is an act of administration" he further says "Administration is the most obvious part of the government; it is the government in action, it is the execution, the operative, the most visible side of the government" - Woodrow Wilson "Public, administration is that part of the science of administration which has to do with government and thus concerns itself primarily with the executive branch, where the work of government is done, though there are obviously problems in connection with legislative and judicial branches" - Luther Gulack "By Public administration is meant in common usage, the activities of the executive branches of the nation, state and local governments" - Simon  3 "Public administration is concerned with the administration of government"- E. N. Gladden "The work which the government does to give effect to a law is called public administration" - H.Walker The above given definitions indicates that the term public administration has been used in two sense i.e. broader sense and narrow sense. In the broader sense, administration includes the activities of all the three-branches of the government, that is "Legislature, Executive and Judiciary and on the other side the narrow sense includes the activities of only the executive branch of the government". Self Assessment Questions 1. What do you understand by Public Administration? 2. What is the meaning by Administration? Nature of Public Administration There are two divergent views have given by the scholars on the nature of public administration, viz.-integral view and managerial view. The Integral view According to this view, public administration includes all the activities which are helpful in fulfilling the given objective, in other words, public administration is the sum total of managerial, technical, clerical and manual activities. According to this view, the administration constitutes the activities of all persons from top to bottom. - L. D. White and Dimock subscribed to this view. According to this view, administration depends upon the subject matter view of the concerned agency that is, it differs from one sphere to another sphere. The Managerial View According to this view, public administration encompasses only the managerial activities and not the technical, clerical and manual activities, which are non managerial activities, thus administration, according to this view/constitutes the activities of only top persons, Simon , Smithburg, Thompson and Gulick adopt this view. Administration is same in the entire sphere as the managerial techniques are same in all the fields of activities. Figure-1 Nature of Public Administration Integral View Managerial View (Sum total of Managerial Technical (Include only Managerial Activities Clerical and Manual activities) and not the Technical or clerical)  4 Scope of Public Administration The scope of public administration is a controversial issue. Nobody seems to have agreed to meet on one single common ground, there are divergent views reflected in different definitions according to this narrow sense, only executive branch are included in the scope of public administration and on the other side, according to broader view, all the three branches of government Legislature Executive and Judiciary are included in the scope of public administration. In the modern era, other concepts and ideas are also included in the public administration like- New Public Administration, New Public Management, Good Governance, Citizen Charter, E Governance, RT1 etc. Keeping in view, all these perspectives, an attempt has been made to discuss the scope of public administration. Traditional and Narrow View The traditional view thinkers restricted the scope of public administration to the executive branch only. Simon, Smithburg and Thompson are the main supporter of this view, besides them Luther Gulick also view public administration as mainly embracing the "POSDCORB" activities of the executive branch. Modern/Broader View Modern writer have extended the scope of public administration to all the three branches of the government the legislature, executive and judiciary. According to them, public administration is the whole government in action. From a broader perspective, public administration is conceived in a comprehensive sense to include all the activities of all three branches of the government. This vie* is more realistic and supported by L. D.White, Woodrow, Wilson, Marshall, Dimock, John. J. Corsor and John Pfiffner and others. Figure-2 Public Administration Broader Sense Narrow Sense (Activities of all the three Branches of (Include the Activities of only the the Government that is Legislature, Executive Branch of the Executive and Judiciary) Government) The POSDCORB View This view of the scope of the public administration was advocated by the Luther Gulick. He believed that administration consisted of seven elements. He summed up these elements in the acronym "POSDCORB", each letter of which implies one element of administration. He explains these seven elements of administration in the following ways:  5 P- (Planning) means the working out in broad outline the things to be done the methods to be adopted to fulfill the objective. O- (Organizing) means the establishing of the formal structure of authority through which the work is sub divided arranged and coordinated for this defined goals. S- (Staffing) means the recruitment and training of the personnel and maintaining favourable conditions of work. D- (Directing) means making decision and giving orders and instructions to the subordinates. Co- (Coordinating) that is more important duty of interrelating the various parts of the work. R- (Reporting) means informing the agency to whom the executive is responsible about what is going on. B- (Budgeting) all that goes which budgeting in the form of fiscal planning, accounting and control. The Subject Matter View The POSDCORB view has been criticized by the Lewis Meriam on the basis of that this view is technique of the administration. It can neither be the whole public administration nor even the significant part of it. Thus, this view is technique oriented rather than subject- oriented. That is, it ignores the essential elements involved in public administration, namely 'Knowledge of the subject matter view' of the scope of public administration arose and it lays emphasis on the services provided and the functions performed by the administrative agency. It advocated that each problem of an agency depends upon the subject matter (Services and functions) performed by it. However, the POSDCORB view and. subject matter, view are not mutually exclusive, but complement to each other. They together constitute the proper scope of the public administration. Lewis Merian rightly said "Public Administration is an instrument with two blades like a pair of scissors. One blade may be the knowledge of the fields covered by POSDCORB, the other side is the knowledge of the subject matter in which these techniques are applied, and both blades must be good to make an effective tool" Summary In short, Public administration is nothing less than the whole government in action. The scope of the subject is very wide because welfare states are undertaking more and more activities in their hands. And the administration is responsible for providing public services to its citizens. So in modern era, the public administration has played an important role in the day today life of its citizens. Further Readings  Avasthi and Maheshwari (2008), "Public Administration" Lakshmi Narain Aggarwal, Agra.  Fadia and Fadia (2011), "Public Administration: Administrative Theories and Concepts, Sahitya Bhawan Publications, Agra.  6  Sharma and Sadana (2008), Public Administration in Theory and Practice, Kitab Mahal Agency, Patna. Model Questions 1. Define Public Administration and discuss the Nature and Scope of Public Administration. 2. Discuss the meaning, nature and scope of Public Administration.  7 Lesson-2 CONTROL OVER ADMINISTRATION Structure Objectives Introduction Concept of Control Types of Control over Administration: Legislative Control Parliamentary questions Parliamentary discussions Parliamentary committees Independent Audit Limitation of Legislative control Executive Control Powers of sub-legislation Ordinances Budgetary system Staff agencies Civil Service Code Judicial Control Forms of Judicial Control Writ of habeas corpus Writ of mandamus Writ of certiorari Writ of Prohibition Writ of qua-warranto Limitation of Judicial control Summary Further Readings Model Questions Objectives After reading the lesson, you will be able to :  8  understand the meaning of control over administration.  explain different types of control over administration. Introduction Every organisation, whether it is government or non-government require control over the use of their human and material resources. The functions of the government are increasing continuously day by day. Administration is an old activity all over the world. Administration and citizens are closely connected with each other, because he receives services from the administration, he pays taxes to the government and enjoys personal freedom being a citizen. Therefore, governing processes must also be accountable, transparent, reasonable, fair and citizen friendly. Accountability in administration has become very important because of the nature of the job performed and power exercised by the public officials in the modern-times. There is an urgent need of an effective control for ensuring accountability in administration so that the objectives of the socio-economic development of our country can be achieved. The Concept of Control All organisations, whether government or non-government, business or non-business, require control over the use of their human and material resources. The need for control arises so as to maximise the use of scarce resources and to achieve purposeful behaviour on the part of the organisation members. At the controlling stage, it is known whether resources are utilised in planned way or not. Control may be defined as a process of checking whether actions are being taken as a planned or in the desired way. Control process tries to find out deviations between planned performance and actual performance and to suggest right action when needed. The more powers concentrated in the hands of a single body, the greater is the need for safeguards against it abuse. Regarding power Lord Acton, has rightly said, "Power corrupts and absolute power corrupt absolutely". The main aim of the control is to check the wrong administrative actions and Increase efficiency and effectiveness of administrative process. Types of Control over Administration A large number of instrument of control have been developed in order to minimise and eliminate the misuse and abuse of authority. Under the modern, democratic set up, these controls flow from the three significant parts of the administrative system which are: (1) Legislative control (2) Judicial control (3) Executive control. These can be discussed one by one to understand it in a better way. Legislative Control In all systems, parliamentary or presidential, control of administration by-the legislature is important. In a parliamentary-system, such as in India or Great Britain, it is of primary importance because all stat.3 activities emanate from the legislature. The main principal of parliamentary system is the responsibility of the executive to the legislature. The executive cannot, therefore, be irresponsible. „The official cannot be called to the floor of the House to explain his action. It" is the minister who shoulders the responsibility for the administrative act of his department If he is unable to satisfy the Parliament, he has to vacate office. The legislature is the major instrument of control over administration as it consist of the representatives of the people, it act as a custodian of the interests of the people. It  9 exercises the control over administration to hold it responsible. The parliamentary system is based on the system-of collective, responsibility. President who is the constitutional or nominal executive and council of ministers who are the real or political executive or the government are part of parliament the council of minister is responsible to Lok Sabha for their policies and actions. Like the British, Canadian and Australian parliaments, the Indian parliament, too, has evolved quite effective direct parliamentary practices. These are the essential tools Of control in the hands of legislature: 1. Parliamentary Question 2. Parliamentary Discussions 3. Parliamentary Committees 4. Independent Audit Parliamentary Questions Parliamentary question is a technique of parliamentary surveillance over the administration practised in all the countries having representative parliamentary democracy. Members of parliament ask questions and ministers usually give answers. The first hour of every parliamentary sitting is slotted to asking and answering of questions. It is known as the "Question Hour". During this hour matters concerning Government of India (GOI) are raised and problems are brought to the notice of the government by the opposition to seek their interventions, to meet any situations, to redress public grievances or to expose, some administrative abuse. The questions are mainly directed towards the proper implementation of the national and international policies as declared by the government and/or approved by parliament, Parliamentary Discussions Legislative discussion on financial and non-financial matters are preceded with resolutions and motions which can be brought on matters Of public interest especially when address by the President or no-confidence motion in the government or adjournment motions retaken up by the house Similarly, half an hour discussion, short duration discussions, statements made by ministers, discussions on railway budget and general budgets, cut motions and debates on vote on account and supplementary grants bring all types of administrative matters for the review and scrutiny of the parliament; In all parliamentary democracies, Parliamentary committees play a vital role in ensuring accountability of the executive these committees are: (1) Public Accounts Committee (PAC) (2) Estimates Committee (3) Committee on Public Undertakings (CPU) which can be discussed as under these headings: Public Accounts Committee It is annually elected committee on the basis of proportional representation by a single transferable vote. It has 22 members, fifteen from Lok Sabha and seven from Rajya Sabha. The chairman of the PAC is generally from the opposition party. The committee ensures that: Money shown in the accounts as having been disbursed was legally available and actually disbursed for the purposes stated. Re-appropriation has been made in accordance with the provisions made in this behalf under rules framed by competent authority.  10 Expenditure conforms to the authority which governs it. This committee also examine the audit report of the Comptroller and Auditor General (CAG). In this work CAG acts as its friend, philosopher and guide. Estimates Committee It is a parliamentary committee, constituted for the first time in 1950 consisting of 30 Members, elected every year by the Lok Sabha from amongst its members. The Chairman of the committee is appointed by the speaker from amongst its members. A minister cannot be elected as a member of the committee. The functions of the Estimates Committee are: to report what economies, improvements in organisation, efficiency and administrative reform, consistent with the policy underlying the estimates may be affected. to suggest best alternative policies in order to bring about efficiency, economy and effectiveness in administration. to examine whether the money is well laid out within the limits of the policy implied in the estimates. to suggest the form in which the estimates shall be presented to parliament. The report of the committee usually contains recommendations for improving the organisation for securing economy and for better presentation of the estimates. The recommendations are generally accepted by the government. The main function of the committee is to examine the estimates included in the budget and suggest economies in the public expenditure. Committee on Public Undertakings The committee was set up in the year 1964. It consists of 22 members, 15 from Lok Sabha and 7 from Rajya Sabha elected for the one year on the basis of proportional representation by means of the single transferable vote. The functions of the committee are: to examine the reports and accounts of public undertakings. to examine the reports of the CAG on the public undertakings. to examine in the context of autonomy and efficiency of the public undertakings whether the affairs of the Public Undertakings are being managed in accordance with sound business principles and prudent commercial practices. to exercise such other functions vested in the committee on public accounts and the committee on estimates in relation to the public undertakings as are not covered as may be allotted to the committee, by the speaker from time to time. The committee does not, however, examine matters of major Government policy and matters of day-to-day administration of the undertakings. The CPU is essentially a fact finding body and helps parliament in ensuring accountability of public undertakings. Independent Audit It is not sufficient to have executive machinery to control over expenditure. In the ultimate analysis, it is the duty of the parliament to ensure financial accountability. It does through an independent audit by the CAG and its financial committees. Without accounts it is impossible to exercise financial control which enable one to know how much was received, how it was spent and for what purpose. It is only though systematic accounts supported by  11 vouchers and receipts that one can convince oneself that the transactions are in order. These accounts are also a must for the purpose of audit. An important part of financial accountability is audit. An independent audit is conducted by an outside agency, namely the CAG in India. Hence, Parliament entrusts the work of examination and verification of accounts to an outside agency in order to discover and report back to it. It checks unsound financial practices, unauthorised and illegal or irregular expenditures, in this way, audit fixes the accountability of officials. Limitation of Legislative Control According to some critics, the role of legislature in control of administration is quite limited on account of following: 1. The size of the legislature is large. On account of its large size it cannot exercise effective control. 2. In the parliamentary system the legislature is a tool in the hands of the cabinet. 3. Legislative decisions are general and the content of the legislation greatly depends upon the executive. 4. The members of the legislature are lay people whereas the members of the administration are technically qualified and specialised. - 5. The financial committees do post-mortem work; they check the expenditure after it has been incurred. 6. The Most of the criticism by legislature members is political, the chief end being to dislodge the government. Executive Control Executive control refers to the control exercised by the political executive over the bureaucracy, which is permanent executive. Following are the controls applied by the executive. It is used both for building up the morale of the officials and for keeping the administrative machinery on the right track. The executive exercises control over administration through following techniques: Powers of Sub-legislation It is an important tool in the hands of the executive to exercise control over administration. The Legislature passes most of the laws and empowers the executive to make rule regulation and bye-laws as per the requirements of time and circumstances. Administrative lawmaking powers are wide in scope and far-reaching in character. They go to the extent of creating rights, conferring privileges, imposing taxes or depriving a citizen of some rights. Ordinances According to the constitution of India, the executive also has the power of passing ordinances which may be promulgated by the chief executive during the off session of parliament or the legislature of a State. An ordinance has the same power as an Act of parliament to meet any unforeseen situation demanding immediate action. The President or the Governor, as the case may be, is the sole judge to determine that circumstances which call for immediate legislation. However, there is a time-limit up to which an ordinance can remain in existence.  12 Budgetary System A good budget is a rough estimate of income and expenditure for the current financial year. It also serves to guide, the officials and in keeping the administration on the right track. The executive controls the administration through budgetary system. It formulates the budget and gets its enacted by the parliament and allocates the necessary funds to meet their expenditure. Staff Agencies The executive also exercises control over administration through staff agencies. The important staff agencies in India are: Department of Administrative Reforms, Planning Commission, Cabinet Secretariat and Prime Minister's Office etc., these agencies exercise indirect control over administration and play an important role in coordinating their policies and programmes. Civil Service Code Political neutrality of the public servants is a fundamental requirement of the organisation. For this reasons, nowadays, all Governments formulate and enforce a code of rules to regulate the conduct qf the employees which are as follows: All India Services (conduct) Rules, 1954. Central Civil Services (conduct) Rules, 1955. Railway Services (conduct) Rules. 1956. These conduct rules for government employees generally relate to the following kinds of matters like: Maintenance of correct behaviour towards official superiors, Protection of the integrity of the officials by placing restrictions on their engaging in private trade, or business, contracting of debts, acquisition and disposal of property, etc. Regulation of political activities of the public servants including public speaking, writing in the press, and publication etc. Self Assessment Questions 3. What is Public Accounts Committee? 4. Define Staff Agencies. Judicial Control Judicial control over administration means the powers of the courts to examine the legality of the officials and thereby to safeguard the rights of the citizens. Under the Indian system of law, the judiciary is the supreme interpreter and protector of citizens rights viz-a- viz. the government. The judiciary has expended its traditional role by adding the concept of public interest and litigation. There is a Supreme Court at central level and High Courts at  13 state level to provide justice to the citizens as well as make them accountable. These courts have the power of judicial review of administrative acts and decisions and statutory appeal against it. L.D. White explaining the importance of judicial control writes: "The system of formal external control over officials and their acts falls primarily into two main divisions- that exercised by the legislative bodies and that imposed by courts. The purpose of legislative supervision is principally to control the policy and the expenditure of the executive branch, end sought by judicial control of administrative acts is to ensure their legality and thus protect citizens against unlawful trespass on their constitutional or other rights". Forms of Judicial Control Judicial control may take any of the following forms: Judicial review of administrative acts and decisions; Statutory appeals against administrative acts and decisions to the court; Suits against the government, central or local by a private party in torts or contracts; Criminal and civil suits against public officials by private parties; and Extraordinary remedies. The Judicial control over administration operates through a system of writs. Articles 32 and 226 of the constitution provide following remedies by way of writs in this country: (1) Writ of Habeas Corpus (2) Writ of Mandamus (3) Writ of Certiorari (4) Writ of Prohibition (5) Writ of Quo Warranto. Writ of Habeas Corpus Habeas corpus is a prerogative writ, which has granted to a subject of his majesty, who was detained illegally in a jail. It is an order of release. The words habeas corpus means 'to have the body'. Writ of Mandamus Mandamus is a judicial remedy which means "We Command". Mandamus is an order issued from a superior court to any subordinate court, corporation, tribunal or public authority to perform an act, which falls within its duty. According to D.D. Basu shorter constitution of India wrote that, "Mandamus is a command issued to direct any person, corporation, inferior court or government requiring him or them to do some particular thing". Writ of Certiorari Literally, certiorari means to be certified. The writ of certiorari is issued by the Supreme Court to some inferior court or tribunal to transfer the matter to it or to some other superior authority for proper consideration. The writ of certiorari can be issued by the Supreme Court or any High Court for quashing the order already passed by an inferior court. Writ of Prohibition Writ of prohibition means "to forbid or to stop", it is popularly known as 'Stay Order*. It is a writ issued by a superior court to lower court or a tribunal forbidding it to perform an act outside its jurisdiction. After the issue of this writ, proceedings in the lower court come to a stop. The Supreme Court can issue this writ only where a fundamental right is affected.  14 Writ of Quo Warranto The word Quo Warranto literally means "by what warrants?" It is a writ issued with a view to restraining a person from acting in a public office to which he is not entitled. The writ of quo warranto is used to prevent illegal assumption of any public office or usurpation of any public office by anybody. Limitation of Judicial Control Judicial control has certain limitations: All administrative actions are not subject to judicial control. There are many administrative actions which cannot be revived by law courts. There is a tendency on the part of the legislature, as well, to exclude by law certain administrative acts from the jurisdiction of the judiciary. Judiciary process is very slow and cumbersome. The courts follow certain set pattern of procedure and the procedure is lengthy that it is seldom known when the final judgment shall be given. Many cases keep pending in the courts many years. Sometimes the decision of the court comes when the damage is beyond repair, and it becomes a case of "justice delayed is justice denied". Judicial action is incredibly expensive and therefore cannot be taken advantage of many people. Filing a suit means paying court fee. The fee of the lawyer engaged and the cost of producing witnesses and undergoing several inconveniences can be afforded by law. Summary The 21st century has witnessed tremendous changes in our country. There have been regular attempts at administrative reforms and innovation both at the Centre and in States level. The legislature, executive and judiciary are major agencies of control over administration; these using different tools and technique to ensure effective control system. But, is a great need to make a strong control mechanism. With this; there is also a need to ensure widespread and easy access of government information to citizens at various levels. There is no doubt that control over administration can be effective with good values among administrators and trust of people in administration. Further Readings B. L. Fadia and Kuldeep Fadia (2002), "Public Administration: Administrative Theories and Concepts', Sahitya Bhawan Publication, Agra. E. Chandran (2009), "Public Administration", Cosmos Bookhiye, Gurgoan. Virkeshwar Parshad Singh (2006), "Public Administration", Gyanda Prakashan, New Delhi. C. L. Baghel and Yogendra Kumar (2005), "Public Administration", Kaniska Publication, New Delhi. M. P. Sharma and B. L. Sadana (2008), "Public Administration in Theory and Practice", Kitab Mahal Agencies, Patna. Model Questions 1. Define control, Discuss about the legislative and executive control over administration. 2. Discuss in detail about the types of control over administration.  15 Unit II Lesson-3 TYPES OF ORGANISATIONS : FORMAL AND INFORMAL Structure Objectives Introduction Definition and Types Organisation as a Structure Organisation as a Process Importance of Organising Purpose of Organising Formal and Informal Organisation Functions of Formal and Informal Organisation Principles of Organisation Patterns of Organisational Structure Staff Structure Distinction between Line and Staff Agencies Functional/Auxiliary Structure Summary Further Readings Model Questions Objectives After reading this lesson, you will be able to :  understand meaning of organisation  differentiate types of organisation  comprehend principles of organisation Introduction The need for the design of sound organizational structures for an enterprise and their continual evaluation in terms of suitability has gained significance due to the inescapable impace of momentous changes in the field of technology and human behaviour on all areas of social activity. Organizational patterns laid down in time-honoured books of rules and regulations can no longer be faithfully copied or strictly applied to the variety of situations which now confront managers at various levels. Study of the organizational structure of an enterprise has been one of the common means of bringing about improvement in corporate performance. The use of the more sophisticated techniques of management analysis which  16 draw upon specialised knowledge and skills in the mathematical, physical, engineering and social science has yet to be adequately developed in its application to the problems of design, improvement and installation of integrated system to for group activity. Organization—Definition and Types : Over the year the word 'organization' has taken a wide variety of meanings. It may be thought of as a term which refers to an enterprise in its totality. Or one may use the word more narrowly to designate only the individual employed by the enterprise : A person who is organized is an individual who shows orderliness, and system in his actions. A group of employees, may be called organised, because they constitute a labour Union: "Another more restricted meaning attributed to organization and organizing deals with relationship. Edgar H. Schein has defined an organisation as "the rational coordination of the activities of number of people for the achievement of some common purpose or goal, through division of labour, functions and through an hierarchy of authority and responsibility". Dale Yoder has stated that organization as a process is purposive and systematic assignment of functions, duties and responsibilities among members of a group of team. It defines the part that each member of an enterprise is expected to perform and the relations among those members...' Simply stated, an organization may be described as a group of people interacting one with another and pooling their efforts towards a common objective. Eminent scholars like Blau, Scott, Etzioni and Simon have claimed that an organization exists or the following reasons: 1. To give recognition to the fact that individual alone is unable to fulfil all his needs and wishes. So he needs organization to meet his requirements. 2. Secondly, organizations exist for specific purpose to achieve some common goals. 3. Thirdly, it has been felt that human societies have found that their goals can best be achieved if they divide the work among different people. To be more simple, division of labour also leads to creation of organizations. 4. Fourthly, hierarchy of authority is another factor which gives rise to organization and this factor is closely related with other factors. In the words of Simon, "Organization means a planned system of co-operative effort in which each participant has a recognized role to play and duties and task to perform." According to Urwick, "Organization is determining what activities are necessary to any purpose and arranging them in group which may be assigned to individuals". According to Gullick, Organization is the formal structure of authority through which work, sub-divisions are arranged, defined, coordinated for the define objectives." According to Presthus, "Organization is defined as a system of structural inter- personal relations... individuals are differentiated in terms of authority, status, and role, with 'the result that personal interaction is prescribed... Anticipated reactions tend to occur while ambiguity and spontaneity are decreased." Herbert G. Hicks identifies the following five facts common to all organizations. These are as follows: (1) An organization always includes persons. (2) These persons are involved with one another in some way—that ia, they are interacting.  17 (3) These interactions can always be ordered or described, by some sort of structure. (4) Each person in the organization has personal objectives, some of which are the reasons for his actions. He expect? that participation in the organization will help to achieve his objectives. (5) These interactions can also help to achieve compatible joint objectives1, perhaps different from, but related to their personal objectives. Members of organizations work towards these joint organizational objectives, in order to achieve their objectives. All these facts emphasise the human beings constituting the organization and their interactions inter se which facilitate the attainment of their personal and also organizational objectives. H.G. Hicks say, "An organization is a structured process in which persons interact for objectives2. Thus the term organization may he defined as the bringing various independent parts of a administrative system into one organic structure with a view to obtaining the maximum return most economically. Just as a living body is made up of a number of organs with their respective separate functions, so is a large administrative organisations are generally divided into a series of organs or departments. In human body various organs such as the eye, the ear, die heart, etc. have their own special functions to perform. Similarly in administrative system there are various departments with their specialised functions. The working of these departments have however to be organised so that they may all work in the desired direction to produce certain definite results. Actually the term organisation is given a variety of interpretations. In any case there are two broad ways in which the term is used. : 1. As a structure 2. As a process. 3.2.1 Organisation as a structure In fact organisation has two parts: First the form of structure and second the functions which are to be performed. In the first we can apply the "principles' of organisation. In the second we determine what activities the enterprise needs and what degree of specialisation it can afford. A typical organisation structure can be shown by a pyramid shaped diagram as shown below: Executives Levels Ministers Top management Secretaries........................................ Departmental Heads Middle Management Superintendents........................................ Assistant and Supervisors Lower Management Workers........................................ The diagram shows the levels of management and the line executives in the descending order. All the Officers starting from the top level down to the Supervisors are designated 'Management* 1 Herbert C Hicks, The Management of Organisation, 1967, P. 16. 2 H.G. Hicks, Op. Cit.  18 3.2.2. Organisation as a Process Organisation is a process of defining and grouping the activities of the enterprise and establishing the authority relationships among them3 Organisation is the process by which the chief executive, as a leader, groups his men in order to get the work done. As a process, it determines which people will have authority over others, what work people will do and the types of contacts they will have. An organisation is created to derive some utility, value or service from them. So we can say that organisation have purpose, goals or objectives separate from the personal needs of their members, such as food, shelter and clothes etc. Importance of Organizing Organizing makes possible the effective operation of a group. It is the basis for team work. The members can serve as a unit directing all their various efforts towards a common goal. Although the importance of organization is great yet importance of a sound organizational structure can hardly be over emphasised. An organization comprises people and is the agency through which management performs the important functions of direction, co-ordination and control. Sound organisation is important because 1. It facilitates administration. 2. Makes growth and diversification possible. 3. Provides for the optimum use of technological improvements. 4. Stimulates independent, creative thinking and initiative through well defined areas of work. Sound organisation can contribute greatly to -the continuity and success of the enterprise. This is often not apparent to the average businessman, who tends to equate sound organisation with neatly drawn and symmetrical organisational charts and to assign it to a subordinate who is not too busy with more important things. This attitude is understandable. But it overlooks the importance of organisation to the long-term viability of the administrative system. 1. Facilitates Administration : A properly designed and balanced organisation facilitates administrative operations, as inadequate organisation may not only discourage but actually preclude effective administration. Sound organisation facilitates delegation. By proper division of labour, consistent delegation and clear job definition, the organisation structure siphons off the routine duties and makes them the responsibility of lower positions. 2. Facilitates growth and diversification : The organisation structure facilitates the growth of the administrative system. Expansion and diversification can proceed no farther than the organisational structure permits. The administration concerned with day-to- day operations often grows beyond the scope of its existing organisation and finds itself in a serious administrative crisis before it undertakes the necessary basic organisation changes. On the other hand, the alert management" anticipates the need for change to facilitate growth. 3 Hanuuann, Professional Management p. 136.  19 3. Provides for optimum use of Technological Improvements : New technological developments increasingly influence the need for more adequate organisational structures and for understanding the proper forms of organisation best designed to accommodate these new factors. 4. Encourages Use of Human Beings : The organisational structure can profoundly affect the people working therein. As we have seen, organisation has often been considered a problem of how to arrange work most efficiently, with subsequent adaption of people to the work being done. Counter measures in the interests of human use of human beings have had significant results. The improvement in morale and productivity is measurable and immediate 5. Stimulate Creativity : Sound organisation stimulates independent, creative thinking and initiative by providing well-defined areas of work with broad latitude for the development of new and improved way of doing things. Properly conceived the organizational, structure, work demand creative results from creative people and with drain routine and repetitive work to supporting positions. By establishing clear-cut accountability, it will provide recognition for the professional and the specialist in terms of their achievement. In nutshell we can say that it is the organizatonal structure that enables living things to work effectively together. The basic element of organization are division of labour a'source of authority and relationships. The aim of the administrator should be to develop a formal organization of such scope as to encompass the varying, highly personal needs of the informal organization. Organization; as described, is extremely important to the administrative system. Organisation adds effectiveness to human efforts in administration. It strives for securing maximum result by the use of least efforts. In a number of ways, organization results in enlisting the best contribution of human energy. 1. Promptness and certainty in work performance are assured by the allocation of fixed duty to different employees who are held accountable for completing their jobs in time. 2. Because of the system of accurate determination of job requirements and man specifications right persons can be placed in right positions and full day's work can be assigned to all persons. 3. Since work facilities and administrative communications are readily available, employees are not required to sit idle for want of instructions, orders or guidance. 4. All delays, confusions and overlapping are avoided in the performance of work as co- ordination between two activities of the enterprise or between two jobs of employees is maintained by managers. Organisation prevents the growth of dishonesty in many forms and permits the human beings to develop their (capacity to the full extent. Whether in matters or in human efforts, organisation puts an effective check upon the violation of moral law. Purpose of Organising 1. Organizing helps in avoiding needless duplication, of efforts. 2. It is to get individuals to work effectively as members of a team, not separately as single individuals. 3. It is to avoid confusion and misunderstandings as to who is to do what work.  20 4. It is to prevent backpassing, an excessive number of member, and misinformed employees. 5. It assists the management in achieving the objective in the best manner by means of a group consisting of an informed and satisfied work force.; Formal and Informal Organization Formal organization is that organization which is deliberately planned and designed. It is sanctioned by competent authority. Its rules are described in the manuals and charts. Its structure can be shown on the organization chart. The relationships among the members of the organization are clearly defined. There are clear cut prescribed relationships between the superior and subordinates. It is the organization as it appears to the observer from outside and it exits in 'blueprints' of the systems. But in every Administrative system a set of informal relationships develop through which employees tend to fulfil those needs which arc- largely personal in nature. Employees for informal groups, are drawn by common interests and harmonious personality traits. Such groups are cohesive in nature, take coffee breaks and lunch together, engage in gossips while working, and in many cases, have social contacts away from work. Alert administrator is aware of the significance of informal groups and does not try to interfere with their innocent and legitimate activities which do'not interfere with productive work. In each of these informal groups informal leaders will develop. Administration will do well to spot these big people and recognise their influence upon other employees-keeping them well informed, consulting them frequently in making decisions which influence employee interests and observing them as prospects for promotion to positions of format leadership. Informal relationships can be highly influential. The challenge to administration can be summed up as one of seeking a blend of formal and informal relationships which help in achieving the objectives of the organization and help the employees to fulfill their personal needs. Functions of Formal and Informal Organizations The formal structure is created to deal with activities which are routine and recurring, those situations where there is a need to resolve repeated problems difficulties in a given area of activity. It is the formal structure which is designed for planned or consciously anticipated needs in problem solving, in communication, and in procedure and processes which result in producing the product or services. Because it is planned in advance because it prescribes the channel of communication or the process sequence or the chain of command, formal structure tends to be rigid and inflexible. It provides support and guidance in time of need or doubt. Its very nature implies predictability. Basic and substantial changes in product lines and in human relationships appear infrequently: Therefore, the formal structure changes slowly and may in fact change only after substantial changes have already occurred in the operating realities4. The informal groups in any organisation perform certain very important and distinctive functions; These not only serve as effective means of communication and perform a mediating function, but also provide an alternative means'of need satisfaction and an 4 Albert K. Wickesberg. Management Organisation, 1970, p.56.  21 agency of social control. The grapevine, i.e., communication channel of the informal groups helps disseminating the information more rapidly and broadly than the formal channel of communication. The informal groups perform a mediating function by linking the individual and the organisation. Each individual is a member of various formal and informal groups within a given organisation. He Is formally assigned to a work group which may develop informal sub-groups in the process of carrying out the assigned task. While he may contribute individually, the small (informal) group is a more typical mechanism through, which individuals contribute to organisational endeavour5. The informal groups help members satisfy various levels of their need security, social and psychological. An informal group protects its members from outside pressure from whatever source, e.g., employers, fellow workers outside the group or other groups by adopting and enforcing its own norms of work and behaviour. These groups also satisfy social need by providing the members opportunities for belonging, for association and for acceptance by one's fellows. Similarly these help satisfying psychological needs by providing (a) dignity, status, self-respect, psychological security, satisfaction through participation, (b) outlet for frustration and (c) use of skills and abilities on the job. The informal groups develop their Culture and values, their standards and norms which are derived from members' background, environment within the organisation and their experiences in their own working. The groups expect and demand conformity to these values, norms and standards from the members. These norms and standards of the informal groups may be either consistent with the objectives and requirements of the organisation or may be at odds with the value system of the formal organisation, leading to conflicting demands from the members. In the former situation these help management to' attain organisational objectives, while they try to defeat the organisational purposes in the latter. Thus the informal structure of the organisation is complementary to its formal structure. The lask facing managements of today is skillfully to blend together the formal organisation with the informal in order to minimise conflict and to encourage healthy adjustment and coordination. This can be achieved by managerial recognition of the importance that informal groups have upon individual attitudes arid morale. The supervisor should encourage groups to form he should recognise their leaders and assign them jobs that reflect their group position; he should see that they are properly informed about policies and procedures. All in all if proper encouragement is given to informal groups they will respond in positive rather than negative ways6. Self Assessment Questions 5. What is Organization? 6. Write any difference between formal and informal organization. 5 Kast & Resenzwerg, op. Cit., p.278. 6 Huneryagar & Heckmann, Human Relations for Management, 1967, p. 415  22 Principles of Organisation Effective and efficient working of any organisation depends also on bow well the managerial function of organisation is being performed. The following are some of the important principles of organisation : 1. Grouping the activities : Determination of the specific activities that are necessary to attain the organisational objectives and their grouping into a logical pattern, frame work or structure is basic for any organisation. It has to take care not only that available capabilities and talents are utilised to the maximum possible extent and facilitate integration of individual goals with organisational objectives, but also helps coordination, of various tasks and roles in the organisation. 2. Allocation of tasks to persons : After the activities have been decided upon and logically structured, these have to be assigned to workers, either individually or in groups. No doubt, the task has to be allocated on the basis of workers knowledge, skills and experiences, but in doing so, an effort should be made-to ensure that the task allocation," while serving the technological requirements, also takes care of people's need and aspirations. According to Rice, 'the task must be one that is recognisable and meaningful for those who perform it. Its performance must be felt as something for which responsibility has been taken. The relationships it provides must be satisfactory 7. In this light he makes three assumptions about task organisation : (a) A task should be organised that those engaged on it can experience, as far as practicable, the completion of a whole task. (b) A task should be so organised that, as far as possible; those engaged upon it can control their own activities. (c) Relate tasks should be so organised that those performing them can have satisfactory relationship8. Proper allocation of task creates responsibility in individual workers by defining their duties and obligations towards their respective jobs or assignment. Mooney and Reiley call it the 'Scalar Process' i.e. vertical and horizontal distribution of functions. This principle is popularly known as hierarchical process. "Hierarchy consists in the Universal application of the superior-subordinate relationship through a number of levels of responsibility reaching from top to bottom of the structure.”9 3. Delegation of authority : Creation of responsibility to be meaningful and duties and obligations to be effective, have to be associated with appropriate delegation of authority and power, in fact, the process/function of organisation today starts with the presumption that individual, even in administrator, in spite of his knowledge and skills, cannot perform all the tasks necessary for effective working of the organisation. Thus the administrator has to divide the task assigned to him in such a way that he performs only that part of it which owing to his unique organisational position only he can perform effectively; and seeks the help of others in performing the remaining task who can perform it at least with the same efficiency if not more. However, it would be possible only if he has appropriate authority and power in relation to his own task. While authority implies an 7 A. K. Rice, op. cit., pp. 34-35. 8 A. K. Rice, op. cit., pp. 34-35. 9 White L.D., Introduction to the study of Public Administration, p. 35.  23 administrators right to make decisions within one's jurisdiction, to assign task to one's own subordinates and to expect them to perform their task effectively; power refer to an administrators capacity or ability to exercise authority, i.e., to cause one's subordinate to do what he wishes them to do. Thus authority to be effective must be accompanied by appropriate power. 4. Coordination and Integration : The success of any modem organisation calls for a very high degree of coordination not only of various tasks and activities being performed in it, of the technical and human sides of it, but also of the individual needs, aspirations and goals with the organisational objectives. This necessitates better understanding on the part of the people involved not only of their respective tasks, but also of the organisational structure, if division, various sections and their interdependence, to help them to look at their own- assignments in relation to the tasks of other persons and of the organisation as a whole. 5. Flexibility : The process or function of organisation has to be dynamic. It must be capable of being adjusted to the changes in the environment. For, this an, organisation has to keep, in touch with the environment on a continuous basis and sense the changes in the environment, so that it may evolve a strategy to deal with a hew requirements, necessitating changes in technology equipment and methods and people, knowledge and skill. 6. No one in the organization should report to more than one line supervisor i.e. everyone in the organisation's should know to whom he reports and who reports to him. This principle is known as unity of command which means that everyone in the organization should have only one boss. Fayol is a great supporter of this principle and advocates that if it be violated, authority is undermined, discipline is in Jeopardy, order disturbed and stability threatended.10 But this principle is under severe criticism, by the experts in the field. As Seckler Hudson says, the old concept of one single boss for each person is seldom found in fact in complex governmental situations. Many inter-relationships exist outside the straight line of command which acquire working with and reporting to many persons for purposes of orderly and effective performance. The administrator in government has many bosses and he can neglect none of them. From one he may receive policy order; from another, personnel; from a third, budget; from a. fourth, supplies and equipments.11 So this principle has also been affected by the increasing complexities in the organizational structure. The increasing influence of technical staff and functional or auxiliary agencies is a adversely affecting the unity of command principle. In the modern organizations we find not only duality of command, but multiplicity of command. 7. Span of Control : In the words of Dimock, "The span of control is the number and range of direct, habitual communication contacts between the chief executive of an enterprise and is principal fellow officers."12 In simple words span of control means the number of subordinates or the units of work that an administrator can direct and supervise. The authors have no unanimity regarding the number of subordinates or units of work that an administrator can directly supervise and control, because it depends upon the personality of an administrator, his capacity to work, nature of organizational work, quality of subordinates and on the total environment of the organization. In this regard Urwick made 10 Fayol, Henri, General and Industrial Management, 1955, p. 11 Seckelr – Hudson, c.. Organisation and Management – Theory and Practice, Washington, 1957, p. 51. 12 Dimock and Dimock, Public Administration, New York, 1956, p. 110.  24 a distinction between direct supervision' and 'access' to the boss. He is of the opinion that an administrator can supervise limited number of subordinates but he (administrator) can be accessible to larger number of subordinates. 8. Centralisation and Decentralization: In the words of White, "the process of transfer of administrative authority from a lower to a higher level of government is called centralization and the converse, 'decentralization." 13 In simple words centralization means the concentration of authority at the top and decentralization means the dispersal of authority among the middle and lower levels of the organization. Centralization and decentralization are not absolute principles which can be applied at anywhere and at any time. There are certain factors which are taken into consideration while applying these principles James W. Fesler enumerates four factors which decide the application of the principles of centralization and decentralization. These are the factors of responsibility, administrative factors, functional factors and external factors.' if the central authority is responsible for action, it won't favour decentralization. Among the administrative factors Fesler mentions the 'age of the agency, stability of its policies and methods, competence of its field personnel, pressure for speed and economy." Among the functional factors; there are certain functions, such as Defence, national plans, communication and transport which require the application of centralisation principle. On the other hand there are such functions which demand popular participation of the people viz. the development of grass— root democracy. In such cases the principle of decentralization is favoured. So the principle of centralization and decentralization can be applied according to the situation and functions of the organization. S. Avery Ranbe has described the principles of good organization as follows : (1) There must be clear lines of authority running from the top to the bottom ; (2) Everyone in the organization should know to whom he reports and who reports to him; (3) The responsibility and authority of each supervisor should be clearly defined in writing; (4) Responsibility should also be coupled with corresponding authority ; (5) The responsibility of higher authority for the acts of its subordinates is absolute ; (6) Authority should be delegated as far down the line as possible. (7) The work of every person in the organization should be confined as far as possible to the performance of a single leading function ; (8) Whenever possible, line functions should be seprarated from staff functions and adequate emphasis should be placed on important staff activities ; (9) The organization should be flexible, so that it can be adjusted to changing conditions.14 13 White L.D., Op. Cit. p. 37. 14 Reprinted in Richards Max. D. And Neilander William A. : Readings in Management, Bombay, D.B. rd taraporevale, 1971, 3., pp. 692-700  25 Patterns of Organisational Structure If we observe the working of different organisations, we come across three types of formal structure-line, staff and functional/auxiliary. Line Structure — If we analyses the activities of any organisation, we notice two types of activities being performed. Certain activities are directly concerned with attaining organisational primary task, i.e., the task for which the organisation has been established to attain, viz., creation and distribution of goods or services. Thus the principal agencies which are set up On the basis of major substantive purposes and are concerned with the provision of services for the people or regulating their conduct in particular fields, "are termed as line- agencies. These directly deal with the public policies passed by the competent authority. From top to bottom, a single line of authority extends downwards. The major line departments in the Government administration are those of Health, Defence, Education, Labour, Employment, Home, Foreign Affairs etc. The advantages of the line structure are that (i) it maintains simplicity, (ii) makes clear division of authority (iii) and encourages speedy actions. The disadvantages of this structure are that (i) it neglects specialists in planning, (ii) over works keymen and (iii) depends upon retention of few keymen. Staff Structure In every organization there are certain other activities which although are not directly concerned with attaining organizations primary task but help in making line activities more effective by providing advice, service and assistance whenever needed. Such services are identified as staff agencies. As an organization grows in magnitude and direction/the work load of the individual executive increases, reaching a stage where it exceeds his work capacity and the line structure fails to serve the needs effectively. The increasing size and complexities necessitate not only functional differentiation downward but also outward. Thus, besides expanding line activities a number of staff functions are added to advise, service and assist the line executives to help attain the organisational objectives. The staff functions are under the charge of technically qualified persons in various aspects of organisational working. Commonly, these activities include collection of data to measure the organizational performance or for future decision making and reporting to an executive, thereby relieving him from this burden of work. Such positions are called Staff Agencies. To quote Henri Fayol, Whatever their ability and their capacity for work, the heads of great enterprises cannot fulfil alone all their obligations they ape thus -forced to have recourse to a group of men who have the strength, competence and time which, the head may lack. The group of men constitutes the Staff of the Management. It is a help or reinforcement or a sort of extension of fee manager's personality, to assist him in carrying on his duties. The, staff appears as a separate body only in large undertakings and its importance increases, with the importance of the undertaking."15 The range of decisions that executives have to make is so wide that some are bound to be in areas unfamiliar to the executive and about which his knowledge and Judgement is lesssure. In such situations, he may lean on the advice, experience and superior judgement of others. Such persons who give such advice are called the general staff. Thus the staff assists, advises, and counsels the line executives. They have no direct authority over any 15 Henri Fayol, in Gulick and Urwick (Eds.) : Papers on the Science of Administration; p. 86.  26 portion of the organization except of course, immediate subordinates within a staff unit The main functions of the staff Agency, as given by L.D. White are as follows.16 (i) To ensure that the Chief Executive is adequately, and currently informed. (ii) To assist him in foreseeing problems and planning future programmes ; (iii) To ensure that matters for his decision reach his desk promptly, in order to be settled intelligently and without delay, and to protect him against hasty or ill considered judgements. (iv) To exclude every matter that can be settled elsewhere in the system (v) To protect his time ; (vi) To secure, means of ensuring compliance by subordinates with established policy and executive directions : Pfifner mentions the functions of staff agency as follows :- (1) Advising, teaching and consultation ; (2) Co-ordination, not merely through Plans But also through human contacts ; (3) Fact finding and research ; (4) Planning ; (5) Contact with other organizations and individuals to know as to what is going on ; (6) Assisting the line without infringing its authority; (7) Sometimes exercising, delegated authority from the line commander. Distinction between Line and Staff Agencies :- The following are the difference between the two: (1) Staff agencies are created to help the line agencies and are thus a means to an end and not an end in itself. (2) People approach the line agencies directly, but staff-agencies do not come in contact with the people. (3) Staff agencies are only advisory, while line agencies implement the public policies. (4) Authority, command, and control belongs to the line agencies while staff agencies are only advisory in nature. (5) Line agencies carry on the primary function of the organisation while staff agencies assist the line agencies. But in reality, the difference between the two is of degree only. The idea that staff agencies are separate and isolated from the line agencies is one which is outdated and completely wrong Albert Lepawsky, states that staff and line are co-ordinates operating not in a hirearchical relations to staff or line but on a horizontal plane of authority and responsibility under the chief executive. 17 He further mentions. "A staff man who does not give commands to the line is ineffectual and a line man who does not understand is failure.' Even the same agency may perform both the roles at different times. For example, the Ministry of Education when advises the Govt, regarding the policy of education, it performs 16 L.D. White, Public Administration. 17 Lepawsky, Public Administration.  27 the staff-function ; when the ministry of education implements the policy of the government, it serves as a line agency. Earnest Dale has pointed out that there are at least five ways in which staff personnel can command authority. These are : Firstly ; staff men are generally articulate and skilled in getting their views accepted. Secondly ; the staff men are equipped with the technical skills, knowledge of the problem, their advice is likely to be accepted in almost all the'cases. Thirdly, some staff persons are of higher status than the line persons and are thus able to secure the acceptance of their views. Fourthly, if a line official does not accept "the advice of the staff, the staff may get his views accepted through the line official's superior. Fifthly, the line agencies may authorize the staff specialists to reach an agreement. Thus, it is wrong to say that staff-agencies perform merely advisory role and do not posses authority, command and control.. The advantages of the Line and staff structure are that (i) it enables specialists to give expert advice, (ii) trees the line executive of detailed analysis and (iii) affords young specialists a means of training. The disadvantages of this type of structure are that (i) it confuses organization if functions are not clear (i) reduces power of experts to place recommendation into action; and (iii) tends towards centralization of organization. Functional/Auxiliary Structure :- The functional staff consists of officers or units which perform certain functions common to the various administrative departments. Willoughby calls them institutional or house keeping services. This type of structure also represents both downward and outward differentiation of functions. Like the line and staff structure, under this type also certain functions are organised to take care of the activities requiring specialised activities, e.g., purchasing, personnel, research and development, quality control, etc. But here these play more important role than the staff people. Besides advisory und service roles of the staff, the functional departments are given functional authority and control. The functional departments have direct access to and authority over line people throughout the organisation. Thus the role of a functional department is both wide and narrow—wide in the sense that its authority and control extend to the whole of the organisation and narrow in the sense that it deals with only, one function. This type of structure violates two of the basic traditional managerial assumptions: Unity of command and authority equals responsibility, because in any organization people usually work under multiple bosses and are held responsible for aspects for which they have no authority. The advantages of functional structure are that (i) it relieves line executives of routine specialised works (ii) provides frame work for applying expert knowledge arid (iii) relieves pressure of need for large number of well rounded executives. The disadvantages of this structure are that (i) it makes relationships more complex ; (ii) makes limits of authority of each specialist a difficult co-ordination problem, and (iii) tends towards centralisation of the organization.  28 Summary An informal organisation exists in every enterprise and at all levels of managerial hierarchy. However, there cannot be a completely formal or completely informal organisation. The formal managers should not try to abolish informal relationships of employees because they are very important and useful for managing the concern efficiently and for achieving the objectives of an enterprise. In the words of C.I. Barnard, “Informal organisation brings cohesiveness to a formal organisation. It brings to the members of a formal organisation a feeling of belonging, of status, of self-respect and of gregarious satisfaction. “According to Keith Davis, an “informal organisation is a powerful influence upon productivity and job satisfaction.” Both formal and informal systems are necessary for group activity, just as two blades are essential to make a pair of scissors workable. Further Readings  A. Avasthi and S. Maheshwari : Public Administration, Lakshmi Narain, Agarwal, 1966.  C.P. Bhambhri : Administration in changing society, National 1978. Model Questions 1. Define organization and also discuss its types. 2. Define formal and informal organization. 3. Explain Principles of organization.  29 Lesson-4 FORMS OF ORGANIZATION : PUBLIC CORPORATIONS AND BOARDS Structure Objectives Introduction Forms and Features of Public Enterprises Departmental Public Enterprises Public Corporation Government Companies Features of Government Companies Public Trusts Which Form is Best? Summary Further Readings Model Questions Objectives After reading this chapter you will be able to :  understand forms and features of Public enterprises.  explain Government companies.  elaborate Public Trust. Introduction Before taking up the different forms of organization of public enterprises prevalent in India, certain overlapping and confusing terms in this context need to be clarified. By "forms" of Organisation of public enterprises is meant the overall pattern of management for running a particular undertaking. It is a categorisation more from the legal point of view. "Types" of public enterprises depend upon the nature of activities being carried out by them, viz trading enterprise, agricultural enterprises, financial enterprises etc. By "structure" of public enterprises is meant the internal hierarchical pattern for the achievement of objectives of that particular public undertaking. Thus, the terms "forms", "types", and "structure" are somewhat different from each other from the academic point of view although they may appear to be the same to a layman. Forms and Features of Public Enterprises The forms of organisation of public enterprises in India have been undergoing change right since their inception. To begin with, before independence and to some extent even after independence, departmental form of organisation was adopted. During 1960's statutory public corporations found favour with the government as a result of which all public enterprises set up during this period were in the form of public corporations. 1970 onwards, the government company form replaced public corporations and even at present different  30 types of government companies are floated whenever any new public enterprise has to be started. This is only a rough compartmentalization of different forms of organisation just to indicate the popular trends of organisation during different periods. Figure A gives an idea of different forms of organisation of public enterprises at different levels of government. The form of organisation of public enterprises varies. It is mainly of three types. The traditional form of public enterprises is the government department. An enterprise may constitute a department in itself, such as the Post Office in a number of countries. But this form is often found to be inadequate, necessitating a different form of organisation. The main disadvantage of the departmental form is that it is not free from control in matters of procedure finance, personnel" etc. The second form is that of the government company or a joint stock company owned by government, established under the Company Law of a country. Company Law is normally formulated to provide a legal basis for private companies, which mainly exist for business or profit-seeking purpose, a government company, unlike a government department, is not subject to the regular control or rules governing normal government activities. It is organizing under the Company Law of the country with its own articles of incorporation which guide the action of Board of Directors. The greatest weakness of this form of Public enterprises is that it does not ensure the public accountability of the enterprise. Although in many countries legal provision is made for the auditing of government companies under the general direction of the auditor-general of the government, a government company is not subject is not to as strict a set of accountability rules as government department. In most cases the employees of government companies are not civil servants. On the whole, the Company form is more suitable for public enterprises which have as their objective efficient production or the creation of surplus or "profit". For the most part it is not suitable for public enterprises with promotional and other policy objectives, including social equity and full utilization of human resources. For a specific policy objective other than the production surplus, it is often better to have a special policy instrument which is tailor-made for the purpose, A public corporation is a form of public enterprise which is outside the framework of government departments and Company Law and which is especially designed to meet the specific need of a Government enterprise. Each public corporation is credited by a law which defines its powers, duties and immunities and which prescribes the form of management and its relation to government agencies. Like a government company, it has a separate entity from the legal points of view and like a government company, it is normally subject righters to the laws and regulations governing the budgeting, accounting, auditing or handling of public funds, in government departments or agencies nor to the civil service laws governing the employees. Unlike a government company, a public corporation does not have shares of share holders, normally its capital is provided by fixed-interest-bearing stock guaranteed by the treasury. It is responsible to a minister as the representative of government and is administered by a Board whose members are appointed by the minister. The public corporation has often been considered the best form of administering public enterprise because it is specifically tailored to fit individual needs and at the same time possesses the flexibility and initiative of an autonomous economic undertaking. Furthermore like government departments, is clothed with the power of the Government; but it does not have a subject itself to the same rigid financial and personnel rules. The corporation form of organization dominates all over the world. The Tennessee Valley Authority (TVA) in USA, the British Broadcasting Corporation (BBC) in UK and  31 Damodar Valley Corporation (DVC) in India are some of the most illuminating examples of this type. In India, with the solitary exception of the Reserve Bank of India established in 1934, no public corporation existed till independence. After independence, many public corporations have been set-up both at the union and state levels. Some of the examples of public corporation at the union level are: Industrial Finance Corporation, Indian Airlines Corporation. Food Corporation of India, Life Insurance Corporation of India, etc. Let us now discuss the forms and features of public enterprises in greater detail. Departmental Public Enterprises Departmental public enterprises are a part of the governmental set-up as different ministries/ departments are directly vested with the responsibility of managing them. Whenever the government feels that there is some activity which is little different from the rout