Departmentation/departmentalisation

1. DEPARTMENTATION
GROUP MEMBERS –
MOHIT YADAV
YUKTA BANSAL
SWATI CHANDWANI
PRACHI GARG
SADHNA PATHAK
PRINCIPAL & PRACTICES OF MANAGEMENT
UNDER THE GUIDANCE OF
DR. ADITI VEDA

2. DEFINITION
 Departmentation is the classification of activities and
organization into units and sub units on the basis
operations and functions , so that each unit (called
department) will work smoothly and separately for each
other .
 Each department is headed by person called as
departmentation manager.
Examples -
sales manager for sales department
Store manager for store department

3. MEANING
 Process of dividing activities into units and sub units .
 Division of work into smaller units and their re-
grouping into bigger units as per the similarity of
features.
 Grouping common activities of organization on the basis
of a function under a single person control.
 Process of integrating similar activities of business into
units for facilitate smooth administration at all levels.

4. OBJECTIVE
• To manage a large undertaking.
•To assign the work only to those who are best
suited.
•To facilitate the carrying out of the activities
efficiently for achieving overall results.

5. EXAMPLE OF DEPARTMENTATION

6. WHY DEPARTMENTATION
 Effective control on expenditure
 Budget preparation Attaining specialization
 Fixations of responsibilities
 Fixations of responsibilities
 Better coordinator
 Work analysis
 Freedom or autonomy
 Budget preparation

7. OTHER NEEDS OF DEPARMENTATION
 Increases the operating efficiency of the
employees.
 Makes the executive to be alert and efficient in his
duties.
 Increases the prestige and skills of the
departmental heads.
 Makes departmental heads efficient.
 Easy to further expansion of the organization.

8. MAJOR PROBLEMS
•De-emphasis of overall company’s objective .
•Reduces coordination between the functions.
•Responsibility for profits is at the top only.
•Slow adaptation to change in environment.
•Limits developments of general manager.
•Overspecializes & narrow viewpoint of key
personnel.

9. FACTOR OF DEPARTMENTATION
 Specification
 Coordination
 Control
 Economy
 Recognition of local conditions
 Human considerations
 Security attention

10. FACTORS DESCRIPTION
1. Specialization –
deparmentation should reflects the specialization in
performing work.
2.Coordination –
best result achieved when activities are performed in
coordination .
3.Control –
process of analyzing whether intended results are being
achieved

11. FACTORS DESCRIPTION
4. Economy –
balance should be maintained between the cost of
creating a department and its contribution.
5.local conditions –
more important for organizations operated in different
geographical area .
3.Human considerations –
human factor plays important role .

12. PROCESS OF DEPARTMENTATION
 Identification of work.
 Analysis of details of each worker .
 Description of the functions of the organization.
 Entrusting the functions to a separate person who
has specialized in the respective field .
 Fixing the scope of authority and responsibility of
the departmental heads.

13. TYPES OF DEPARTMENTATION
 Departmentation by Functions
 Departmentation by Products
 Departmentation by Territory
 Departmentation by Customers
 Departmentation by Time and Numbers

14. DEPARTMENTATION BY FUNCTIONS
Marketing
department
Board of
directors
Finance
department
Purchase
department
Production
department
In functional departmentalization, an organization is
organized into departments based upon the respective
functions each performs for the organization. For
example, a manufacturing company may create a
production department, sales and marketing department,
an accounting department, and a human resources
department

15. DEPARTMENTATION BY PRODUCTS
Reliance
digital
Reliance
Reliance
trends
Reliance
power
Reliance
capital
Product departmentalization often occurs in companies
that divide manufacturing, marketing, sales or other
processes into certain categories, giving each an
important focus on core operations. Thus, employees
within a broader functional area may also be divided into
product categories, or departments

16. DEPARTMENTATION BY TERRITORY
Departmentation by regions may also be
called departmentation by territories or areas. This is because
adaptation to local situations and customer needs, peculiar to
a given area, is easier under this type of departmentation. The
sales manager can appoint local people as salesmen.
Western
regional
head
Sales
manager
Eastern
regional
head
Southern
regional
head
Northern
regional
head

17. DEPARTMENTATION BY CUSTOMERS
customer departmentalization is where the
organization's activities are ready to respond to and
interact with specific customers or customer groups.
This organizational form is used when great emphasis is
placed on effectively serving different customer types.
Corporate
banking
Bank
Agriculture
banking
School
banking
Ladies bank

18. DEPARTMENTATION BY TIME AND NUMBERS
In time departmentalization, departments are separated
based on the division of their working time or job shifts.
For an example, departments can be made based on
night shift, morning or regular shift, evening shift, etc
Supervisor
Morning shift
Night shift
Day shift