Comparative Public Administration
February 12, 2025
The concept of reinsurance is fairly simple. When a person takes on insurance, they transfer their risks to the insurance company. The insurance company sells the same contract to many people to create a pool of money. Since all the people are not likely to face an adverse event at the same time, insurance companies […]
When two individuals have different opinions and neither of the two is willing to compromise, conflict arises. A state of disagreement among individuals is called as conflict. Conflict arises at workplace when employees find it difficult to reach to mutually acceptable solutions and fight over petty issues. Differences in attitude, mindsets and perceptions give rise […]
Motivation is the word derived from the word ’motive’ which means needs, desires, wants or drives within the individuals. It is the process of stimulating people to actions to accomplish the goals. In the workplace, several psychological factors can drive motivation. Some psychological factors in workplace motivation are: desire for money success recognition job-satisfaction team […]
Creating high-performance workforce has become increasingly important and to do so business leaders must be able to inspire organizational members to go beyond their task requirements. As a result, new concepts of leadership have emerged – transformational leadership being one of them. Transformational leadership may be found at all levels of the organization: teams, departments, […]
In the previous article, we have studied about the concept of captive insurance companies. We have also enumerated the various advantages of using captive insurance companies over traditional insurance companies. However, there was an underlying assumption that all captive insurance companies are the same. That is not the case! There are various types of captive […]
The line agency in its traditional form exists as departments. Departments are the fundamental unit of administrative organizations and carries out all the functions. There are different shortcoming and problems associated with this structure as well but before we dwell into that, we shall make an attempt to understand the basic principles on which the organization of departments is based.
The organization of departments is based on four principles:
The above mentioned principles are not the sole criteria for the basis of organizations, aspects like traditions and history also play a role. Generally, the governments look at a combination of one or more principles and considerations to base the departments on. The most relevant however has been the functional principle or the Scientific Principle of Organization. With increase in specialization of functions, it only makes sense to have organizations based on them. Let us read about some of the features of this principle:
The departments are further divided into divisions which is the vertical division based on the broader functions to be performed by the department. The horizontal division is done for other specific activities to be carried out under that division.
The horizontal method of dividing the work within the organization is preferred in comparison to the vertical segregation. The arguments given for the same are:
The departments are generally divided into two divisions (there may be more), the division of Primary Activities and the Division of Secondary or Institutional Activities about which we read earlier.
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