INTRODUCTION: The classical approach emphasized the importance of the structure-the formal dimension of organisation. The human relations approach, on the other hand emphasises the informal dimension of the organization. While the formal and informal dimensions of organisation form an important component of organisation phenomenon, the human behaviour-the value disposition of the functionaries-determine their attitudes and working style of the organisation. The human relations and behavioural approaches broadly deal with the man in the organisation. While the former deals with the relationships among the people working in an organisation, the latter deals with the 'inside' human being with a focus on the place of his values and rationality in the working of an organisation. An understanding of 'inside' the man is as important as 'inside' the organisation.
Herbert Simon analysed the human behaviour in terms of its value preferences in decision- making process. It is this central concern that is significant to the understanding of organisation and its working.
OBJECTIVES
- The importance of behaviouralism in Public Administration
- Simon's criticism of classical theory
- Simon's views on decision-making
- The meaning of rationality and its relation to behaviouralism; and
- Critically evaluate the behavioural approach
CLASSICAL THEORY: SIMON'S CRITICISM
Simon waged a frontal attack on the structural approach. He criticised the principles of organisation and described them as mere proverbs. He pointed out that the principles are contradictory and normally inconsistent. He also noted, that they are not scientifically valid and do not have universal relevance. It is on these grounds Simon questioned their theoretical basis to analyse or explain the orgranisational phenomenon. Any theoretical construct should possess a frame of reference which should have universal validity. It is this investigation that led to the growth of the study of administrative behaviour with a focus on authority and decision-making.
Simon waged a frontal attack on the structural approach. He criticised the principles of organisation and described them as mere proverbs. He pointed out that the principles are contradictory and normally inconsistent. He also noted, that they are not scientifically valid and do not have universal relevance. It is on these grounds Simon questioned their theoretical basis to analyse or explain the orgranisational phenomenon. Any theoretical construct should possess a frame of reference which should have universal validity. It is this investigation that led to the growth of the study of administrative behaviour with a focus on authority and decision-making.
Unlike the principles which have a contextual relevance, the decision-making, according to Simon, is a universal process and can form the base for wider organisational analysis.
PLACE OF DECISION-MAKING IN ADMINISTRATION
To Simon, administration is the art of "getting the things done". He lay emphasis on the processes and methods that ensure action. He says that in administrative analysis not sufficient attention is paid to the choice which precedes action. Determination of 'what to do' rather than 'doing actually' did not receive proper attention. Decision-making deals with the process of choice which leads to action. Simon points out without an adequate understanding of this dimension, which is rooted in the behaviour of man in the organisation, the study of administration would remain largely inadequate.
To Simon, administration is the art of "getting the things done". He lay emphasis on the processes and methods that ensure action. He says that in administrative analysis not sufficient attention is paid to the choice which precedes action. Determination of 'what to do' rather than 'doing actually' did not receive proper attention. Decision-making deals with the process of choice which leads to action. Simon points out without an adequate understanding of this dimension, which is rooted in the behaviour of man in the organisation, the study of administration would remain largely inadequate.
In the behavioural approach, the question that is to be understood is the process that precedes action. This is popularly known as decision-making process. The need for taking decisions arises when there are several alternatives or courses of action open to an individual. But one has to choose only one alternative by a process of elimination. Therefore, decision-making is defined as a process of reducing the alternatives to one. Rationality of human being lies in selecting such an alternative which can produce maximum positive results and minimum negative results.
The efficiency of any group effort, does not depend only on organisation that ensures effective thing of a job. It also depends on the existence of principles which would ensure correct decision-making which in turn determines the effectiveness of doing the job.
In an organisation people above the operative level are considered important as they are entrusted with more crucial functions of decision-making. They have a very important role to play in realising the organisational goals. They have greater role in influencing the behaviour of the operative staff. For example, in a war the soldiers fight in the battle field. They take many decisions at their own levels. But the overall strategy that is formulated by the Generals, who are not engaged in the actual battle would determine the outcome of the battle. Similarly in an automobile industry, the car is produced by the mechanics on the assembly line and neither by the engineer nor the executive. Yet the latter occupied a crucial place. Again, the fire is extinguished by a team of firemen and not by the fire chief.
In an organisation people above the operative level are considered important as they are entrusted with more crucial functions of decision-making. They have a very important role to play in realising the organisational goals. They have greater role in influencing the behaviour of the operative staff. For example, in a war the soldiers fight in the battle field. They take many decisions at their own levels. But the overall strategy that is formulated by the Generals, who are not engaged in the actual battle would determine the outcome of the battle. Similarly in an automobile industry, the car is produced by the mechanics on the assembly line and neither by the engineer nor the executive. Yet the latter occupied a crucial place. Again, the fire is extinguished by a team of firemen and not by the fire chief.
In administration operative staff are important. The success of organisation depends on them. The men above the operative level are equally important. They have an essential role to play in achieving the organisational goals. The supervising staff have greater influence upon the outcome of an organizational effort, than the lower levels. These supervisory staff have greater influence on the operative staff. They decide, plan and direct the operative staff.
In smaller organisations, the influence of the supervisory staff is direct, while the influence is indirect in the big and complex organisations.
Simon, therefore, says that effective organisation involves setting up of operative staff and above it, a super imposing staff capabie of influencing the operative staff towards a coordinated and effective behaviour. He also says that the working of organizations depends on the manner in which decisions and behaviour of employees are influenced. It is for these reasons that the behavioural approach emphasises that "insight into the structure and function of an organisation can best be gained by analysing the manner in which the decision and the behaviour of such employees are influenced within and by the organisation".
CHOICE AND BEHAVIOUR
Human behaviour involves conscious or unconscious selection of particular alternative which is physically possible and organisationally effective. The selection of a choice refers to preference of a course of action over other courses of action. In any mechanical action, the choice and the action are directly related.
Human behaviour involves conscious or unconscious selection of particular alternative which is physically possible and organisationally effective. The selection of a choice refers to preference of a course of action over other courses of action. In any mechanical action, the choice and the action are directly related.
You would notice this in case of a typist. He hits a particular key with a finger because a reflex has been established between the latter on printed page and the particular key. Here the action is rational but no element of consciousness is involved. It is, therefore, a conditioned reflex action.
In other cases, the selection will have to be a product of a complex chain of activities called planning or design activities. This can be noticed in the construction of a bridge where an engineer designs and the rest of the activities will have to be tailored to the design.
Decision-making process involves three important phases as activities: They are intelligence activity, design activity and choice activity. Intelligence activity involves finding occasions to take decisions. For this the executive has to analyse and understand the organisational environment. He has also to identify the conditions that need decision. The second phase is design activity which involves development of alternatives to do a particular job. The executive should also identify the merits and advantages as well as problems involved in each of the alternatives. The final phase is the choice activity. In this the decision maker should choose or select one of the alternatives or course of action, keeping in view the organisational goals.
VALUE AND FACT IN DECISION-MAKING
The effectiveness of a course of action depends upon the capacity of that decision to attain the goals that are set. The choosing of a correct choice is related to the individual's performance. This deals with the question of values. The effectiveness depends upon the information available at a given point of time. This is related to the question of facts. Value is expression of a preference. It can only be subjectively asserted as valid. Fact, on the other hand is a statement of reality. It can be proved by observable means. Choice or decision involves both facts and values. They clarify the criteria in analysing the ethical and factual elements involved in a decision.
The effectiveness of a course of action depends upon the capacity of that decision to attain the goals that are set. The choosing of a correct choice is related to the individual's performance. This deals with the question of values. The effectiveness depends upon the information available at a given point of time. This is related to the question of facts. Value is expression of a preference. It can only be subjectively asserted as valid. Fact, on the other hand is a statement of reality. It can be proved by observable means. Choice or decision involves both facts and values. They clarify the criteria in analysing the ethical and factual elements involved in a decision.
Simon argues that the behaviour of members of an organisation is partly determined by the purpose of the organisation. It is the purposiveness which brings integration in the pattern of behaviour. Absence of purpose renders an organisation meaningless.
The purpose provides the direction and a frame of reference and determines the things that are to be done and the things that should not be done. In the process, even a minute decision governing specific action is necessarily an application of broader decisions related to purpose and to method. Simon gives the example of a man walking. He describes the process as follows: "A walk contracts his leg muscles in order to make a step; he takes a step in order to proceed towards his destination; he is going to the destination, a small box, in order to mail a letter, he is sending a letter in order to transmit certain information to another person and so forth". Each decision involves the selection of a goal and behaviour relevant to it; his goal is not an end in itself. It may lead to a distant goal and so on, until a relatively final aim is reached.
Simon maintains that in so far as decisions lead toward the selection of final goals, they are called "value judgements". And if they involve the implementation of such goals they are called "factual judgements". For instance in the budgeting of a local body the council has to decide on what items the amount should be allocated . This depends on the priorities. The decisions whether to allocate more amount to roads or parks, education or health are inter-linked with the 'value judgements'. Once the priorities are decided, then the implementation mostly depends on 'factual judgements'. For instance, the length of the road, the connecting points, the type of road, etc., are the decisions related to factual judgements.
There do not exist value decisions and factual decisions.
There do not exist value decisions and factual decisions.
Values and facts are only the premises and components which are inter-wined. Problems do not come to us as value decisions or factual decisions.
THE HIERARCHY OF DECISIONS
The concept of purposiveness involves the notion of a hierarchy of decisions - each step downward in the hierarchy consisting in the implementation of the goals set forth in the step immediately above. Behaviour is purposive in so far as it is guided by general goals or objectives of the organisation. It is rational in so far as it selects alternatives which are conducive to the achievement of the previously selected goals. Although, theoretically this looks as a neat arrangement, operationally this is fraught with a number of difficulties. The difficulties arise because no organisation pursues a single goal. The governmental agency seeks to achieve many goals. It is the complexity that makes perfect integration extremely difficult. However, certain amount of integration will have to be achieved in reality, without which no purpose can be achieved.
The two important dimensions of behavioural approach unfolds:
The concept of purposiveness involves the notion of a hierarchy of decisions - each step downward in the hierarchy consisting in the implementation of the goals set forth in the step immediately above. Behaviour is purposive in so far as it is guided by general goals or objectives of the organisation. It is rational in so far as it selects alternatives which are conducive to the achievement of the previously selected goals. Although, theoretically this looks as a neat arrangement, operationally this is fraught with a number of difficulties. The difficulties arise because no organisation pursues a single goal. The governmental agency seeks to achieve many goals. It is the complexity that makes perfect integration extremely difficult. However, certain amount of integration will have to be achieved in reality, without which no purpose can be achieved.
The two important dimensions of behavioural approach unfolds:
(1) the policy making and the implementation;
(2) the involvement of facts and values in the decision-making.
It highlights that the decisions at the lower levels involves more of factual judgements. In the decision-making process, choosing of ends involves selection of an alternative based on value judgement and in selection of means to achieve the end, it is the factual judgement that are involved. Rationality in the decision-making process largely depends upon the correct choice of both the 'value judgement' and 'factual judgement'.
RATIONALITY IN DECISION-MAKING
As you know decision-making is a very complex process involving a chain of unending decisions. In the simpler situations analysing the sequence is easier and therefore, a better and rational decision-making is possible. In complex situations which involve a large network of decisions at different phases, the rationality in the decision-making is bound to suffer.
But Simon emphasises that all decision-making should be based on rational choices. He defines rationality as one concerned with the relation of a preferred behaviour alternatives in terms of some system of values whereby the consequences of behaviour can be evaluated. This requires that the decision maker should have knowledge about all available alternatives. The decision maker should also be able to anticipate the consequences of each of the alternatives.
As you know decision-making is a very complex process involving a chain of unending decisions. In the simpler situations analysing the sequence is easier and therefore, a better and rational decision-making is possible. In complex situations which involve a large network of decisions at different phases, the rationality in the decision-making is bound to suffer.
But Simon emphasises that all decision-making should be based on rational choices. He defines rationality as one concerned with the relation of a preferred behaviour alternatives in terms of some system of values whereby the consequences of behaviour can be evaluated. This requires that the decision maker should have knowledge about all available alternatives. The decision maker should also be able to anticipate the consequences of each of the alternatives.
Simon explains that there are six different types of rationality viz., objective, subjective, conscious, deliberate, organisational and personal.
Simon rejects the concept of total rationality as it is based on totally unrealistic assumptions. Total rationality is based on the belief that decision makers are omniscient and they have knowledge about all available as well as their consequences.Secondly, the assumption is that the decision maker has unlimited computational ability. Finally, it believes that the decision maker has the capacity to put in order all the possible consequences. These assumptions, Simon says, are fundamentally wrong.
There are several limitations in the decision makers in terms of skills, habits, values and conception of purpose as well as the extent of knowledge relevant to his job. Therefore Simon says that organisations should not start with the concept of total rationality. Instead, they should work on the basis of 'bounded rationality'.
It is in this concept of bounded rationality, Simon develops the concept of 'satisficing'. The term satisficing is derived from the words satisfaction and sufficing. As total rationality is inconceivable, the executive 'satisfices' with a good enough choice. The decision maker tries to arrive at either optimal or fairly good solutions. Such solutions or decisions may or may not lead to maximisation of organisational goals.
It is in this concept of bounded rationality, Simon develops the concept of 'satisficing'. The term satisficing is derived from the words satisfaction and sufficing. As total rationality is inconceivable, the executive 'satisfices' with a good enough choice. The decision maker tries to arrive at either optimal or fairly good solutions. Such solutions or decisions may or may not lead to maximisation of organisational goals.
PROGRAMMED AND NON-PROGRAMMED DECISIONS
Simon makes a clear distinction between programmed and non-programmed decisions. The former are those which are repetitive and routine in nature. For such decisions, definite procedures can be worked out. Each decision need not be dealt with separately. In programmed decisions, habits, skills and knowledge about the problem is important. In such decisions, mathematical models and computer can help the decision makers to arrive at rational decisions.
Simon makes a clear distinction between programmed and non-programmed decisions. The former are those which are repetitive and routine in nature. For such decisions, definite procedures can be worked out. Each decision need not be dealt with separately. In programmed decisions, habits, skills and knowledge about the problem is important. In such decisions, mathematical models and computer can help the decision makers to arrive at rational decisions.
Non-programmed decisions, in contrast, are new, novel and unstructured. No cut-and-dried methods would be available and each question or issue has to be dealt with separately. Training in skills relevant to the job and innovative ability become relevant and important to develop capacity to take proper and relevant decisions.
DECISION-MAKING AND ADMINISTRATIVE PROCESS
Administrative activity is a group activity. In organisations, decision-making is more systematic unlike in the case of an individual or a family. Administrative process is a decisional process which according to Simon involves three important steps. They are - segregating the elements in the decision-making process, establishing procedures to select and determine these elements and communication of these elements to the members of the organisation.
Administrative activity is a group activity. In organisations, decision-making is more systematic unlike in the case of an individual or a family. Administrative process is a decisional process which according to Simon involves three important steps. They are - segregating the elements in the decision-making process, establishing procedures to select and determine these elements and communication of these elements to the members of the organisation.
The organisation takes away from the inclividual a part of his decisional autonomy and substitutes it with organisational decision-making process. Organisational decision-making process specify the functions of individuals, allocate authority and also set limits to his choice.
The following are some of the practices that emerge from the structuring of behavioural choice:
1. SPECIALIZATION: It is a characteristic of organisations - tasks are allotted to different levels in the organisation. The specialisation may take a form of vertical or horizontal division of labour. Simon emphasises on vertical specialisatian. He argues that there is need for specialisation between operative and supervisory staff.
2. Coordination: Group behaviour requires not only the adoption of correct decision, but also adoption of the same decision by all members of the group. In the decision to construct a house, several individuals are involved. In each has his own plan and they do not communicate their plans, chances of a good house construction are very bleak. They would be able to achieve better results if they adopt a design and execute it.
3. Expertise: There is a need for specialised skill at the Operative level. The work in the organisation must be sub-divided so that all the processes requiring a particular skill can be performed by persons possessing those skills. likewise to gain the advantage of expertise in decision- making, the responsibility for decision must be allocated that all decisions requiring a particular skill can be made by persons possessing that skill.
4. Responsibility: The administrative organisation seeks to enforce conformity of the individual to norms laid down by the group. The discretion given to the subordinate personnel is limited by policies determined by top administrative hierarchy. Thus, autonomy in the decision-making is restricted at various levels.
MODES OF ORGANISATIONAL INFLUENCE
An administrative organisation devises its own modes and methods to influence the decision-making process. In other words, the organisation seeks to restrict the behavioural choice and reduces decision-making autonomy. This is done partly through structure and partly through a systematic influence on individual's behaviour. The modes that are used to influence the behaviour are, authority, organisational loyalties, criterion of efficiency, advice and information, and training.
An administrative organisation devises its own modes and methods to influence the decision-making process. In other words, the organisation seeks to restrict the behavioural choice and reduces decision-making autonomy. This is done partly through structure and partly through a systematic influence on individual's behaviour. The modes that are used to influence the behaviour are, authority, organisational loyalties, criterion of efficiency, advice and information, and training.
1. Authority - P Chester Barriard devoted considerable attention to the concept of authority. The organisational culture as pointed out earlier, builds the myth of authority in such a way that subordinates carry out the order coming from above without questioning them. The superior does not seek to convince the subordinate but expects acceptance of the orders readily. Barnard, however, maintains that authority lies with the subordinate who is accepting it and nor with the superior who is exercising it. The myth of authority is able to influence to a large extent, the behaviour.
2. Organisational Loyalties: In any organisation its members tend to identify themselves with that group. This is an important characteristic of human behaviour. They take decisions keeping in view the interests of the organisations with which they have identification. The good organisation always dominates the consciousness of the member. It is this conception of good that makes him loyal and enable him to take decisions which would be in conformity with the good of the organisation. Thus, the behavioural choice is narrowed down by the organisational loyalties and facilitate homogeneity of behaviour rendering group work possible. Each member of the organisation would also have a limited range of values which is essential to ensure accountability. But the problem in organisational loyalty is that each individual takes a narrow view of the organisation and ignores the broader organisational interests. Simon opines that as one moves higher in the organisation, greater would be the need for broader outlook.
3. Criterion of Efficiency: The exercise of authority and the development of organisational loyalties are the important means through which the individual's value-premises are influenced by the organisation. But in every decision-making there are also factual judgements. They are influenced by the criticism of efficiency. The concept of efficiency involves shortest path, the cheapest means in the attainment of the desired goals. The efficiency criterion is largely neutral as to what goals are to be attained. The order "be efficient" is a major organisational influence over the decisions of members of any administrative agency.
4. Advice and Information: The communication flow in an organisation is also important in shaping the decision- making process. Advice and information available to an individual is an important input in making factual judgements. The organisation which is capable of facilitating effective communication can not only condition the behavioural choice but ensure uniformity of judgement and action.
5. Training: Training is a device which prepares members of an organisation to take satisfactory decisions. It equips an individual in methods of using his discretion in conformity with the design and the goals of the organisation. This is also a device through which the information and the necessary goals are transmitted to an individual so as to enable him to make right type of choices in the organisation.
CRITICAL EVALUATION
We have studied how behaviour influences administrative organisation, it has its unique characteristics. The discussion indicates that for the purpose of organisational analysis, it is neither the structure nor the human relations but it is the decision-making that should be the frame of reference. The discussion highlights how some of the principles such as hierarchy, coordination, division of work, specialisation are associated with the decision-making process. The efforts go into making of an organisation structure. The determinants of the structure such as authority, loyalty, efficiency and training are mainly intended to restrict the behavioural choice and facilitates group effort. If every individual in the organisation is permitted to behave the way he wants to, then no group efforts would be possible. It is for this reason that the organisational structure is built.
We have studied how behaviour influences administrative organisation, it has its unique characteristics. The discussion indicates that for the purpose of organisational analysis, it is neither the structure nor the human relations but it is the decision-making that should be the frame of reference. The discussion highlights how some of the principles such as hierarchy, coordination, division of work, specialisation are associated with the decision-making process. The efforts go into making of an organisation structure. The determinants of the structure such as authority, loyalty, efficiency and training are mainly intended to restrict the behavioural choice and facilitates group effort. If every individual in the organisation is permitted to behave the way he wants to, then no group efforts would be possible. It is for this reason that the organisational structure is built.
Thus human behaviour and its inter-connection with the structure and group effort form the substance of behavioural approach to the study of organisation. lnspite of its valuable contributions, the behavioural approach has come under considerable attack. It is criticised mainly on the following grounds:
i) The conceptual framework is not adequate. While the behavioural approach criticise the classical approach as inconsistent and internally contradictory, the behavioural approach itself has not offered an adequate framework to explain the organisation phenomenon. It confined its analysis to only "inside" the man in an organisation. It has not taken the entire social setting in which an organisation operates. Ignoring the social, historical, political, economic, geographical and cultural factors is virtually delinking the organisation from its wider setting. This puts a major constraint on the explanation of organisation phenomenon.
ii) It is apolitical. Administrative system is a sub-system of a political system. It is the politics and the political power that set the goals of an Administrative organisation. It is largely influenced by the political process. The behavioural approach, like classical approach, took a political view giving an impression that organisations are autonomous from the political environment. An approach which lays emphasis on 'value judgement' should not have ignored the political process which also determines the value premises of the public organisations.
iii) Value free and neutral approach is not helpful. While the approach sought to analyse the value judgement, the concept of rationality did not touch any ethical questions. For the approach maintains that rationality lies in picking up appropriate means to achieve the goals. A theory which ignored the larger questions if what is desirable and what is undesirable in the larger interests of the society, would not be able to set pace to right types of development, nor can it provide a correct perspective. A thief committing theft by highing up appropriate means would be within the rationalist frame, although what he does may not fit into a socially desirable ethical framework. Such danger, involved in the value free and neutral approach is not realised by the behavioural approach.
iv) The approach is general and not of practical relevance. Another criticism against the behavioural approach has been that it offered only in general explanation to the understanding of organization at an abstract level. It hardly helps a practitioner as to how the working of an organisation can he improved. It tends to be highly general in explanation. Therefore, it has no concrete suggestions to offer for either better working of the organisation or to improve the decision-making process in an organisation.
iv) The approach is general and not of practical relevance. Another criticism against the behavioural approach has been that it offered only in general explanation to the understanding of organization at an abstract level. It hardly helps a practitioner as to how the working of an organisation can he improved. It tends to be highly general in explanation. Therefore, it has no concrete suggestions to offer for either better working of the organisation or to improve the decision-making process in an organisation.
v) The concepts of authority and rationality seek to explain human behaviour from an idealistic point of view. The material conditions and concrete historical situation which govern human behaviour have not been taken into account. Organisation man is compared with economic man. The contrast between these two view points is very wide and striking. The entire discussion on economic man deals with his material behaviour. This factor does not figure in the discussion on administrative man at all. The productive processes and the general human relations that determine the value judgements and choice of behaviour is totally ignored in this approach.
SUMMARY:
The behavioural approach marks a significant break-through in the growth and evolution of organisation theory. Its contribution to the study of organisation is quite substantial. Behavioural approach has taken the organisation study beyond the principles and structures which are of technical nature. It provided a new angle to look at organisations and offered a new frame of reference, viz., the decision-making. It also brought in concepts of value and facts and rationality into administrative discussions. The principles enunciated by the classical thinkers are presented in a new light. The lengthy discussion on time determinants of organisation-both the structural and behavioural-and the modes of organisation influences add to the rich understanding of the administration. In fact, Simon's subsequent devotion to the study of economic organisation is considered as a loss to the discipline of public administrative organisation. Critics think that had he pursued the same line of enquiry, the study of administration would have gained enormously. Finally, behavioural approach, widened the conceptual framework and contributed richly to the lively debate on organisation in general and organisation behaviour in particular.
The behavioural approach marks a significant break-through in the growth and evolution of organisation theory. Its contribution to the study of organisation is quite substantial. Behavioural approach has taken the organisation study beyond the principles and structures which are of technical nature. It provided a new angle to look at organisations and offered a new frame of reference, viz., the decision-making. It also brought in concepts of value and facts and rationality into administrative discussions. The principles enunciated by the classical thinkers are presented in a new light. The lengthy discussion on time determinants of organisation-both the structural and behavioural-and the modes of organisation influences add to the rich understanding of the administration. In fact, Simon's subsequent devotion to the study of economic organisation is considered as a loss to the discipline of public administrative organisation. Critics think that had he pursued the same line of enquiry, the study of administration would have gained enormously. Finally, behavioural approach, widened the conceptual framework and contributed richly to the lively debate on organisation in general and organisation behaviour in particular.
KEY WORDS
Bounded rationality: According to Simon, human behaviour is neither totally rational nor totally non-rational. It has its limits
Horizontal division of labour: Where there is division of labour at the same level
Vertical division of labqur: When there is hierarchical division of labour based on skill and knowledge required at different levels .
Bounded rationality: According to Simon, human behaviour is neither totally rational nor totally non-rational. It has its limits
Horizontal division of labour: Where there is division of labour at the same level
Vertical division of labqur: When there is hierarchical division of labour based on skill and knowledge required at different levels .
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