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Specialization and Coordination | Commerce & Accountancy Optional Notes for UPSC PDF Download

Introduction

  • Organizational landscape, one can observe the emergence of entities, both large and small, where numerous individuals collaborate to achieve the goals for which these organizations were established. Within these entities, one can also notice the division of labor and specialization. This division of labor is an essential element in any group endeavor, as it transforms a mere collection of individuals into a unified, constructive, and purposeful group. It is through this division of labor that enhanced performance becomes feasible. Hence, it can be said that the division of labor is a fundamental aspect of public administration. Luther Gulick famously stated that the division of labor is the bedrock of organization, indeed, the very reason for its existence. Although Adam Smith emphasized the significance of the division of labor in his seminal work "The Wealth of Nations," this aspect has been somewhat overlooked in the realms of administration and management.
  • While the division of labor is essential for efficient function performance, its integration and coordination are equally crucial. Only through coordination can the integration and synchronization of efforts be achieved, thereby enabling the realization of organizational objectives. Coordination is also essential for resolving conflicts, reconciling differences, and achieving goals. Given its importance in organizations, James Mooney referred to coordination as the "first principle of organization." Thus, in contemporary organizations, one can observe both the division of labor and the coordination of divided work. This unit will delve into the necessity, importance, and process of the division of labor, as well as the significance, methods, and challenges of achieving coordination in modern organizations.

Why Divide Work?

  • Division of work has become a necessity due to the inherent limitations of both physical and mental capabilities of individuals. The earliest instances of division of labor were seen in families, where men typically sought food and provided security, while women cooked and took care of children. As time progressed, the nature of production evolved, with the advent of the industrial revolution and the introduction of machinery accentuating the need for division of labor.
  • There are several reasons why division of work is necessary. Firstly, individuals differ in their capacities and skills. No two individuals have identical physical or mental capacities. Some individuals possess significant physical strength, enabling them to perform physically demanding tasks, such as miners in cold mines, unskilled laborers on construction sites, or armed soldiers guarding frontiers. Conversely, policymakers, scholars conducting basic research, and scientists working in research laboratories require exceptionally high levels of mental abilities. Different tasks thus require different types of skills, whether physical or mental, necessitating division of work within an organization based on individuals' capacities.
  • Secondly, division of work is necessary because an individual cannot be in two places at once. A person cannot effectively manage multiple activities simultaneously. For instance, a small shopkeeper might handle managerial, cashier, and storekeeper tasks alone. However, large-scale organizations require people deployed across different locations. Consider the example of a city's Commissioner of Police, overseeing a large area and population. The Commissioner sets broad guidelines, which are then implemented by deputy commissioners, assistant commissioners, circle inspectors, and the constabulary at different police stations. Similarly, state governments make policy decisions, but these are executed by numerous officers posted at various levels, from district to village.
  • Thirdly, individuals have limited mental capacity, allowing them to concentrate on one task at a time. For instance, a stenographer can take dictation first and then type it out, but cannot do both simultaneously. A telephone operator can handle one call at a time, not multiple calls concurrently.
  • Lastly, the scope of knowledge and skills is expanding rapidly, making it impossible for any individual to master all fields. The medical field, for instance, is extensive, with doctors typically specializing in specific areas, such as surgery, pathology, or biochemistry. Even within surgery, doctors may focus on neurosurgery, cardiac surgery, etc.

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Why is the division of labor necessary in organizations?
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Bases of Work Division

  • The approaches to work division are a topic of much debate, yet no clear-cut theories or associations have emerged. Consequently, a wide range of methods are utilized for work division, providing general guidelines instead of exact techniques to aid executives. Broadly, when dividing work, consistent methods must be considered. Various authors have proposed different ways of dividing work. For instance, Luther Gulick suggested the "4 Ps" bases of departmentalization, whereas Newman suggested products, location, customers, processes, and functions as the bases for dividing work. More or less following Gulick's bases, Millet proposed purpose, process, products, persons, and places as the bases of departmentalization. 
  • As there is no universally accepted method of work division, the needs of the organization and the situation determine which bases are followed and how work is divided. Additionally, each base has its advantages and disadvantages, and the work should be divided based on the advantages. In Public Administration, the most significant issue is how to divide governmental work so that government functions can be carried out efficiently, effectively, and economically. Although there is no universally accepted base, Gulick's "4 Ps" bases, namely purpose, process, people, and place, have generally been accepted by all writers. In the following sections, we will examine the four bases of departmental organization.

Organization by Purpose

  • One widely accepted basis for dividing work is purpose or function. A function can be defined as a large block of interrelated activities that fulfill a specific major objective by the government. For example, the Department of Defense's primary purpose is to ensure the country's protection against external aggression and defend its frontiers. All interrelated activities associated with achieving this major purpose are located within this particular organization.
  • There are several advantages to dividing work or establishing organizations based on purpose. It enables the satisfactory accomplishment of given objectives since all interrelated aspects of the activity are under the immediate control of the organization's head. It also helps people understand the workings of different government departments. Additionally, it encourages full-time attention to achieving results. However, there are certain disadvantages as well.
  • It is impossible to eliminate overlapping functions because one department's work may also be found in another department. For example, the functions of education may overlap with health, and vice versa. This approach may also result in the centralization of authority and each department emphasizing its function, leading to unnecessary conflict. Furthermore, this approach may not encourage skill updating because the department only concentrates on the major purpose.

Organization by Process

  • Organizations can be established based on the skills needed or the process. For example, typing is a skill, and several organizations have a centralized pool of typists. The nursing department in a hospital is based on professional expertise in the nursing profession. The government's civil engineering department is concerned with the planning, design, construction, maintenance, and other phases of civil engineering work.
  • In an era of professionalization, organizing based on the process not only updates skills but also maximizes the utilization of technical skills. It encourages the use of labor-saving devices and contributes to increased production. Concentrating talent in a single agency also enables the tackling of problems in a sustained manner. Organizing by process facilitates career planning and development. However, this approach may lead to overemphasis on specialization, neglecting the needs and requirements of the general public. It is also possible that organizations built around a profession or skill may show resentment in accepting democratic control.

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What is one advantage of organizing work based on purpose or function?
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Organization by Persons

  • The primary goal of Public Administration is to serve the community. Organizations can be established based on the persons to be served. Examples of this principle include the Directorate of Child and Women Welfare, the Commissioner for Scheduled Castes and Scheduled Tribes, and the Directorate of Tribal Welfare.
  • Creating departments based on the persons to be served significantly contributes to improving the conditions of such people. This basis ensures proper appreciation and full-time attention to the problems of target groups like scheduled castes, scheduled tribes, and the handicapped, which may otherwise not receive the much-needed attention. However, this basis of organization does not encourage specialization. Secondly, there may be a considerable amount of duplication and conflict in this agency. It is also possible that pressure groups may become overly active, and favor-seeking individuals may try to influence decision-makers.

Organization by Place

  • Finally, organizations can also be established based on the area to be served. Examples of agencies established on the basis of the area to be covered include zonal railways, areal divisions within the Ministry of External Affairs, and the Damodar Valley Authority.
  • The major strength of organizing departments based on the area is that immediate attention can be given to the problems of a particular area. The areal approach encourages decentralization and flexibility. However, the weakness of this mode of organization is that uniformity may have to be sacrificed, and achieving an integrated approach may be difficult.

Advantages of Division of Work

  • Dividing work within an organization yields numerous advantages. Firstly, it enhances organizational efficiency, as personnel are assigned tasks based on their capacities, skills, and aptitudes. It is customary for the chief executive of any organization to allocate tasks according to the unique strengths of different individuals. For instance, Mr. A may excel in handling confidential matters and can be entrusted with delicate security issues, while another individual might be adept at communication and listening, making them an ideal fit for the public relations department. A third individual might show a knack for analytical work, making them a valuable asset in the research department. Ultimately, work division leads to the deployment of individuals in roles that align with their aptitudes.
  • Moreover, work division often results in increased production. For example, the implementation of the assembly line technique in an automobile factory involves different units manufacturing various components, which are then assembled to produce a finished car. Since each unit focuses on producing a specific component, efficiency is likely to improve, leading to faster output. Additionally, work division, within reasonable limits, promotes efficiency by encouraging the optimal use of time, resources, and skills, ultimately leading to economic benefits.

Limitations of Division of Work 

  • While work division is essential in any organization, it must be practiced within logical limits. Certain norms must be observed when dividing labor. An important requirement is that the division of work should be limited to a level that requires the full-time attention of a single individual. Further division may lead to a dispersion of energy and effort. Additionally, the division of work is influenced by factors such as skill levels, workload, time constraints, spatial considerations, and technology specific to a particular field of activity.
  • If work division is necessary, it is equally vital to ensure the integration of the efforts of different individuals, which is achieved through coordination. Work division is a crucial managerial tool and is fundamental to modern Public Administration. As knowledge and professions continue to grow, there will be a greater need for specialization and more sophisticated work division. As work division increases, so too does the need for coordination. 

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What is the primary goal of Public Administration?
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Meaning and Definition of Coordination 

  • Coordination encompasses both positive and negative aspects. On the negative side, it involves resolving conflicts and reconciling differences of opinion to achieve specific goals. In any organization where work is divided among different groups of people, success depends on the cooperation extended. For instance, in a factory, the personnel department must ensure the availability of skilled manpower, the stores department should supply raw materials, and the finance department should provide funds. Each unit must cooperate with others to ensure the timely availability of inputs, preventing any disruptions in production. Thus, coordination involves both the removal of obstacles and the fostering of team spirit.
  • Coordination is often described as the integration of various parts into an orderly whole to achieve the goals of the undertaking. A classical example is a musical orchestra, where different instruments are played by different artists. However, the harmonious music produced depends on the coordination ensured by the music director or conductor.
  • In the context of an organization, coordination is vital. Seckler Hudson defined it as "an important duty of relating the various parts of the work." For instance, the General Manager of a Zonal Railway oversees a network with diverse activities. The Mechanical Engineering staff maintains locomotives and rolling stock, the Chief Inspector of Permanent Ways is responsible for track maintenance, and the Traffic Controller manages train movement. The Station Superintendent ensures proper train arrival and departure, along with passenger needs. The stores department supplies materials, finance manages financial inputs, and personnel oversees the workforce. The General Manager must divide work among different groups and integrate them effectively to ensure the smooth movement of trains.

Why is Coordination Necessary? 

Coordination is a crucial aspect of any enterprise involving multiple individuals. In administration, which is essentially a group activity with numerous officials handling various tasks, differences may arise due to differing perceptions or priorities. For example, while the head of an organization may prioritize quick file disposal, officials managing the files may struggle due to a lack of necessary data, related documents, or cooperation from other sections. Coordination is necessary for several reasons:

  • To Eliminate Conflict: In a welfare state, administration serves the diverse needs of different societal sections. For instance, conflicts may arise between the Town Planning Department and Urban Development Authorities, and real estate operators, builders, industrialists, and traders, each having their own priorities that may conflict with zoning plans. Water usage from rivers can also be a source of conflict between different states. Resolving these conflicts is essential.
  • To Eliminate Unhealthy Competition: Competition can lead to improved performance within limits, but if it becomes unhealthy, it can result in delays. For example, government departments may compete to spend more money than previous years or request larger budget estimates than sister departments. Unhealthy competition between district health officers to meet family planning targets can result in inappropriate sterilizations. Similarly, competition between airlines to offer attractive tour packages can lead to losses for some companies. The primary goal should be to ensure speedy and safe transportation, rather than unhealthy competition between railways and road transport.
  • To Ensure Economy and Efficiency: Efficient management requires achieving organizational goals within specified time and cost limits. Delays lead to cost overruns. This requires top-down direction to ensure timely progress with the availability of manpower, materials, and funds. For example, the erection of machinery at the Bhopal plant of Bharat Heavy Chemicals Limited was delayed due to a lack of coordination, leading to increased costs.
  • To Achieve Goals: Coordination is essential for goal achievement. In a general hospital, for instance, coordination among surgeons, doctors, nurses, pathologists, biochemists, lab technicians, administrative staff, pharmacists, and others is crucial to providing timely healthcare to patients. The superintendent of the hospital provides direction and coordination to ensure services are available when needed.

Techniques of Coordination 

By now, you should understand the importance of coordination in group efforts. While coordination is essential, it's important to know that various techniques are followed to achieve coordination in administration. Here are the various techniques of coordination:

  • Planning: Planning is considered an important technique to ensure coordination. It involves advanced preparation for future actions, identifying different aspects of work, and scheduling them for orderly implementation. Planning is crucial to ensuring optimal returns from available resources within the stipulated time frame. For instance, the construction of a thermal plant involves various phases like site acquisition, building construction, component fabrication, machinery import, personnel appointment, and plant commissioning, which must proceed in a specific sequence to minimize delays.
  • Consultation: Consultation is another device to ensure coordination. If a decision taken by one department would affect the functioning of another, it's advisable to consult in advance and make informed decisions. Since most administrative decisions have financial implications, it's customary for any department to refer any file involving extra expenditure to the finance department for advance clearance.
  • Conferences and Committees: Conferences, committees, and inter-departmental committees are constitutional devices that facilitate coordination. For example, the annual conference of Health Ministers provides a platform for exchanging opinions and formulating a common action plan. Similarly, inter-departmental committees review the enforcement of traffic regulations, ensuring smooth coordination among different departments.
  • Standardization of Procedures: Standardization of procedures and methods facilitates coordination by stipulating a common course of action to be followed by different agencies. For example, the Director General of Supplies and Disposal sets the procedure for purchasing various requirements for all ministries, ensuring conformity and eliminating confusion.
  • Centralized Housekeeping: Centralized housekeeping activities like printing, auditing, and equipment and building maintenance promote coordination by avoiding duplication of efforts and ensuring timely availability of inputs.
  • Written Instructions: Clear instructions issued from headquarters help ensure smooth workflow. For instance, district collectors are given clear instructions on measures to be taken during floods or famines, enabling timely initiation of remedial measures.

In summary, these techniques of coordination ensure that different parts of an organization work together effectively to achieve common goals.

Question for Specialization and Coordination
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What is the purpose of coordination in an organization?
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Hindrances to Coordination

Despite recognizing the significance of coordination, achieving effective coordination can be challenging. Coordination in any organization may face obstacles due to uncertainty about the future, lack of knowledge and experience, poor planning, the organization's size, and the numerous variables that need to be integrated. In summary, an organization's success or failure hinges on the effectiveness of measures taken to ensure coordination, as coordination acts as the bonding agent that unites individuals to efficiently reach their goals.

The document Specialization and Coordination | Commerce & Accountancy Optional Notes for UPSC is a part of the UPSC Course Commerce & Accountancy Optional Notes for UPSC.
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FAQs on Specialization and Coordination - Commerce & Accountancy Optional Notes for UPSC

1. Why is division of work important in organizations?
Ans. Division of work is important in organizations as it helps in specialization, increases efficiency, saves time, and allows individuals to focus on their strengths. It also leads to better quality work and increased productivity.
2. What are the advantages of coordination in the workplace?
Ans. Coordination in the workplace ensures smooth functioning, avoids duplication of efforts, promotes teamwork, enhances communication, and helps in achieving organizational goals effectively. It also leads to better decision-making and problem-solving.
3. How can hindrances to coordination be overcome in an organization?
Ans. Hindrances to coordination in an organization can be overcome by promoting open communication, establishing clear roles and responsibilities, fostering a culture of teamwork, using technology for better coordination, and providing adequate training to employees.
4. How does specialization help in improving coordination in an organization?
Ans. Specialization in an organization helps in improving coordination by allowing employees to focus on their specific tasks and expertise. This reduces confusion, avoids conflicts, and promotes a more organized workflow, leading to better coordination among different departments.
5. Why is coordination necessary for the success of an organization?
Ans. Coordination is necessary for the success of an organization as it ensures that different departments work together towards common goals, minimizes conflicts, maximizes efficiency, and helps in adapting to changes in the business environment. It also leads to better decision-making and overall organizational effectiveness.
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