Chapter 10: ORGANIZATION
Administration is a cooperative effort of a group of people in
pursuit of a common objective. Organization is an important
element of an organization. It facilitates proper use of that
group and resources.
- It is the form of every human association for attainment
of a common purpose.
- The relating of efforts and capacities of individuals
and groups upon a task in such a way as to secure the
objective with least friction and most satisfaction for
whom the task is done and those engaged in the enterprise.
- Organization is both a structure and a set of human
- Other features are: Division of labor, power,
responsibility, presence of multiple power centers,
substitution of personnel.
Gulick's Theory: Four Basis of Organizations
I: Persons: Group of people served by the
Advantage: Makes one agency responsible
for all needs of a group. Facilitates coordination of
different services provided for the beneficiaries.
Establishes close relationship between target group and
agency. Enables wholistic approach to problems.
Disadvantage: Creation of niche
departments. Jurisdictional disputes.Violates the principle
of specialization due to multi-functional character. Makes
organization vulnerable to improper influence of pressure
groups. This Principle doesn't have universal application.
II: Purpose: Functions performed by the
organization. Identify functions and goals and create a
department for each.
Advantages: Coherent mission of
organizations. Eliminates overlapping and duplication of
work. Facilitates development of coordinated policies.
Fixation of responsibility for failures. Easily intelligible
to common man. Self containment of organization and low
coordination costs. Work under a single director who
exercises control over all personnel.
Disadvantage: Neglects subordinate type
of work. Ignores latest technologies. Leads to
departmentalization in thinking.
III Process: Specialized skill used by
organization in performance of work since it involves use of
same knowledge, skills and processes.
Advantages: Maximizes specialization,
utilization of technical skill,. Secures economy due to mas
utilization of labor saving machinery. Encourages
coordination in technology. Work is conducive to development
of career service.
Disadvantage: Neglect of generalists.
Focus on means than ends. Professional conflicts. Cannot
apply to non technical activities.
IV Place: Territorial area covered by the
Advantage: Intensive development of an
area. Facilitates coordination of different services
provided in a single area. Allows adaptation of national
policies to area. Suitable in cases of long distance and
communication difficulties. It secures economy due to
reduction in travel and communication cost.
Disadvantage: Counter to uniformity in
administration of national policies. Fosters localism at
cost of national outlook. Violates principles of
specialization due to multi-functional nature. Can come
under influence of regional interests, pressure groups.
Cons of Gulick's theory:
- Gulick didn't consider culture in which an organization
is located or its environment or personnel and political
factors. The theory is criticized as vague, incompatible
with each other, focus on prescriptive approach i.e. how
work should be divided not descriptive i.e. how it is
- Some organizations might have all four types of
departments due to situational factors, efficiency
requirements and goals.
Hierarchy [ A scalar process or Chain ]
It is a grading of duties not according to different
functions but as per the degree of authority and
corresponding responsibility. It is a chain of command - an
unbroken line of authority that extends from top of
organization to bottom and clarifies who reports to whom.
Principles of hierarchy
- Principles of proper channel: All
command and communication should pass through proper
channel. No intermediate level can be skipped in business.
- Principles of correspondence: Authority
and responsibility should be coequal and coterminus at all
- Principle of Unity of Command: Subordinates
should receive orders from single superior only.
|used as a channel of communication
||discourages initiative and drive of lower personnel.
|fix responsibility at each level and no short
||Top loses touch with lower levels. Not conducive for
growth of dynamic human relations.
|Prevents congestion at top.
||Creates superior subordinate differences at various
levels w.r.t pay, qualifications, responsibilities,
distribution of authority.
|Decentralization, delegation of duties
|simple procedure for file management
|discipline, coordination and order.
Fayol's Gang plank
To speed flow of business and avoid delay in disposal of
cases. Allow direct communication between people at same
level but in different departments after clearance of