Introduction: - It is considered as a suitable form of organisation of public Enterprises. The departmental form of public sector operates under the control and guidance of the concerned ministry. The Departmental form of public sector includes the railways, broadcasting, post and telegraphs, telephone services, etc.
Following are the some of the important features/characteristics of Departmental Organisation.
1. Administration by the Government/ controlled by the ministry: - The Enterprises is run as a Government Department. For instance, All India Radio, and Doordarshan come under the ministry of information and broadcasting. The minister concerned is accountable for the working of the department. He is answerable to the people, i.e. to the any queries relating to the working of the enterprise
2. Decision-Making: - The major policy decisions are taken by the concerned ministry, whereas, day-today administration is looked after by the officials appointed with executive power.
3. Finance: - Government of India finances the department form of public sector, and the surplus, if any goes to the government exchequer.
4. Major policy changes: - The officials’ in-charge of the department has to take government sanction for expansion programmes and for major policy changes.
5. Monopoly position: - prior to 1991, most of the department were working as monopolies. However, of late, there has been privatization of such department including broadcasting, defence and even railways to a certain extent.
6. Establishment: - A departmental undertaking is established by a particular ministry. For instance, the department of railways is established by ministry of railways.
7. Suitability: - The departmental form of business organisation is suitable for defence and public utilities. For instance, it is suitable for public utilities such as railways, post and telegraphs, and so on.