Question

Consider the following statements regarding Bases of Departmentalization by Gulick:

I. Gulick identified four bases: Purpose (function), Process (skills), Persons (clientele), and Place (area), calling it the 4P-Formula.

II. According to Gulick, administration consists of seven elements (functions), coined as POSDCORB: Planning, Organizing, Staffing, Directing, Coordinating.

III. The acronym includes Reporting and Budgeting, with each letter standing for one function (element) of administration.

• A. Only I and II are correct
• B. Only II and III are correct
• C. Only I and III are correct
• D. All are correct

Answer 1

Answer:

C. Only I and III are correct

Departmentalization Bases by Luther Gulick

• Luther Gulick, a prominent public administration theorist, proposed several principles for organizing government.
• He identified four primary bases for departmentalization, which are ways to group activities within an organization.
• These bases are:
  • Purpose (or Function): Grouping activities by the services or goals they aim to achieve. For example, a Department of Health or a Department of Education.
  • Process (or Skill): Grouping activities based on the specialized knowledge or skills required. For instance, an engineering department or a legal department.
  • Persons (or Clientele): Organizing departments around the specific groups of people they serve. An example could be a Department of Indian Affairs (in the historical context) or a juvenile welfare bureau.
  • Place (or Area): Grouping activities according to the geographical territory they cover. This is common in large countries or when dealing with regional issues, such as regional offices of a national agency.
• While these four bases are well-established in administrative theory, the statement that Gulick called this the "4P-Formula" is not standard terminology attributed to him in most academic literature concerning his work on departmentalization.

POSDCORB - The Seven Elements of Administration

• Gulick is also widely recognized for coining the acronym POSDCORB, which represents the major functions or elements of administration.
• This acronym breaks down administration into seven key activities:
  • Planning: Devising the work to be done.
  • Organizing: Establishing the structure of authority and coordinating mechanisms.
  • Staffing: Recruiting, training, and managing the workforce.
  • Directing: Issuing orders and instructions.
  • Coordinating: Interrelating the various parts of the work.
  • Reporting: Keeping informed those to whom the executive is responsible.
  • Budgeting: Fiscal planning, control, and accounting.
• Each letter in POSDCORB stands for a distinct, essential function within the administrative process.
• This framework provides a comprehensive view of the managerial tasks involved in running an organization effectively.
• The second statement, which suggests Gulick identified seven elements as POSDCORB but omitted Reporting and Budgeting, is incorrect. POSDCORB explicitly includes both Reporting and Budgeting as critical components of administration.