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Attempt the following. Demerits of Departmental Organisation. - Organisation of Commerce and Management

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Question

Attempt the following.

Demerits of Departmental Organisation.

Answer in Brief
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Solution

  1. Delay in Action: In the Departmental organisation there is always centralization of authorities. Such excessive centralization of authority leads to delay in action.
  2. Inefficiency and Corruption: There is a lot of inefficiency and corruption in departmental organisation.
  3. Less Scope for Initiative: The working of this organization suffers from a lack of continuity and stability because the policies of the department are decided by the ministers.
  4. Instability: The working of this organisation suffers from a lack of continuity and stability because the policies of the department are decided by the Ministers.
  5. Delayed: The executives at the lower level have to depend on higher authority for. all the decisions. They can’t make their own decisions.
  6. Lack of Flexibility: The Departmental organization lacks flexibility in decision making. This is because there is a centralization of authority.
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Chapter 5: Forms of Business Organisation - II - EXERCISE [Page 116]

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Balbharati Organisation of Commerce and Management (OCM) [English] Standard 11 Maharashtra State Board
Chapter 5 Forms of Business Organisation - II
EXERCISE | Q 7. 2) | Page 116
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