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    Departmentation Departmentation Presentation Transcript

    • Departmentation
      • Departmentation by enterprise function means grouping of activities according to the functions of an enterprise, such as production , selling and financing
      • Departmentation is a means of dividing a large organization into smaller , flexible units
      Er.Sartaj Singh Bajwa
    • Advantages
      • Increase the efficiency of the organization as various activities are grouped together
      • Furnishes means of tight control at the top.
      • Simplifies training.
      • It provides for fixation of standards of performance and ensures effective control
      • Creates opportunities for the departmental heads to take initiative
      Er.Sartaj Singh Bajwa
    • Disadvantages
      • Reduces coordination between functions as the organization is divided into various parts
      • Responsibilities for profits is at top only.
      • Slow adaptation to change in environment.
      • It increases the levels of management which is expensive and thus increases the gap between the top management and the workers
      • Departmentation creates difficulties of communication among the various departments of the organization
      Er.Sartaj Singh Bajwa
    • Factors affecting Departmentation
      • To get the benefits of specialization
      • Control should be effective so as to ensure clear authority and responsibility
      • Coordination should be taken into consideration
      • Key activities need to be separated
      • Expenses involved in creating separate departments
      Er.Sartaj Singh Bajwa
    • Basis Of Departmentation
      • Functional Departmentation
      • Product wise Departmentation
      • Territorial or Geographical Departmentation
      • Process wise Departmentation
      • Customer wise Departmentation
      • Time wise Departmentation
      Er.Sartaj Singh Bajwa
    • Functional Departmentation
      • Grouping of common or homogeneous activities to form an organization unit is known as functional departmentation
      • Further functions in an organization are divided in two categories basic and secondary functions
      • Basic functions are those which are necessary for the smooth running of the business like production ,marketing , finance
      • When span of management is too large then further departments are created within the main departments they take care of secondary functions
      • In this case like the basic function is marketing but it may further be divided into advertisement , sales , market research
      Er.Sartaj Singh Bajwa
    • Product wise Departmentation
      • Product departmentation involves the grouping together of all the activities necessary to manufacture a product or product line
      • Eg In an automobile organization the departmentation could be car division , truck division , bus division
      Er.Sartaj Singh Bajwa
      • Departmentation by territory or geography means
      • “ Grouping of activities by area or territory is common in enterprises operating over wide geographic areas”.
      • Organizations which are involved in banking , insurance , transportation
      • Eg India could be divided into north , south , east , west , central zones
      • Further North zone can be divided into Chandigarh , new Delhi , Jalandhar , Ajmer divisions
      Er.Sartaj Singh Bajwa
    • Process Departmentation
      • In this processes involved in production or various type of equipments used are taken as basis of departmentation
      • The basic aim to do process departmentation is to achieve economic benefit
      • Eg process departmentation in case of textile organization can be by dividing the production into spinning , dyeing , weaving , finishing departments
      Er.Sartaj Singh Bajwa
    • Customer wise Departmentation
      • Grouping of activities around marketing channels involves making an organization structure reflect the ways an organization reaches the ultimate customer
      • Advantage of this type is that it focuses on customer who are the ultimate suppliers of money to the organization
      • Eg in pharmaceutical companies different customers could be doctors , hospitals , government , retail stores
      • Further it could be wholesale , retail , export
      Er.Sartaj Singh Bajwa
    • Time wise Departmentation
      • In some organizations where work is performed through day and night , the work is divided into shifts
      • Thus when an organization may operates on three shifts, three different departments may exist
      Er.Sartaj Singh Bajwa