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  • 1. DEPARTMENTATION PRESENTED BY: SIMRAN BUTTAR
  • 2.  Dividing work on the basis of the specialization is known as deparmentation. Departmentation is a means of dividing a large organization into smaller , flexible units.
  • 3.  According to Koontz andO’Donnell, “Departmentation is a process of dividing the large monolithic functional organization into smaller and flexible administrative units.”
  • 4. 1.Functional Departmentation2.Product wise Departmentation3.Territorial or Geographical Departmentation4.Process wise Departmentation5.Customer wise Departmentation6.Time wise Departmentation
  • 5.  This is the simplest and most prevalent basis for departmentation. Under this all the functions of similar nature are divided in different units which are called departments. EXAMPLE: The functions of manufacturing concern can be divided into production department, marketing department, financial department and personnel department. Again sub departments can be established in each department.
  • 6.  Product departmentation involves the grouping together of all the activities necessary to manufacture a product or product line. EXAMPLE: In an automobile organization the departmentation could be car division, truck division, bus division.
  • 7. * * 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.*EXAMPLE: India could be divided into north , south , east , west , central zones. *Further North Zone can be divided into Chandigarh, New Delhi, Ludhiana.
  • 8. *In this process involved in production or various types of equipments used are taken as basis of departmentation.*The basic aim to do process departmentation is to achieve economic benefit. *EXAMPLE: Process departmentation in case of textileorganization can be by dividing the production into spinning, dyeing, weaving, finishing departments.
  • 9. *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.EXAMPLE: In pharmaceutical companies different customers could be doctors , hospitals , government , retail stores. *Further it could be wholesale , retail , export.
  • 10. *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.
  • 11. THANK YOU…