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ANANDAPADMANABHAN .J.

S1 M.com
Departmentation- Meaning
The process of grouping of activities
into units for the purpose of
administration is called
departmentation. It can be defined "as
the process by which activities or
functions of enterprise are grouped
homogeneously into different groups.”
IMPORTANCE OF DEPARTMENTATION

Specialisation

Expansion
Autonomy
Fixation of responsibility
Appraisal
Management development
Administrative control
TYPES OF DEPARTMENTATION
 Departmentation by Function
Departmentation by Products
Departmentation by Territory
Departmentation by Customer
Departmentation by Process
Composite Departmentation
Functional Departmentation
Board of Directors
Managing Director

Marketing

Quality Control

Production

Processing material

Finance

Repairs and
maintenance
Product Departmentation
Board of Directors
Managing Director

Plastics

Finance

Chemicals

Production

Metals

Sales

Personnel
Territorial Departmentation
Board of Directors
Managing Director

Northern
Division

Branch I

Western
Division

Branch II

Eastern
Division

Southern
Division

Branch III
Customer Departmentation
Board of Directors
Managing Director
Finance

Wholesale

Marketing

Production

Exports

Personnel

Retail
Process Departmentation
Board of Directors
Managing Director

Ginning

Spinning

Weaving

Dyeing
Composite Departmentation
Managing Director

Works Manager

Marketing Manager

Consumer Products
Division

Domestic Sales
Manager

Private Buyers

Finance Manager

Industrial Products
Division

Export Sales
Manager

Govt. Agencies
DIVISION OF LABOUR
Division of labour, the separation of a
work process into a number of tasks, with
each task performed by a separate person
or group of persons. It is most often
applied to systems of mass production and
is one of the basic organizing principles of
the assembly line. Breaking down work
into simple, repetitive tasks eliminates
unnecessary motion and limits the
handling of different tools and parts. The
consequent reduction in production time
and the ability to replace craftsmen with
lower-paid, unskilled workers result in
lower production costs and a less
expensive final product.
Departmentation

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Departmentation

  • 2. Departmentation- Meaning The process of grouping of activities into units for the purpose of administration is called departmentation. It can be defined "as the process by which activities or functions of enterprise are grouped homogeneously into different groups.”
  • 3. IMPORTANCE OF DEPARTMENTATION Specialisation Expansion Autonomy Fixation of responsibility Appraisal Management development Administrative control
  • 4. TYPES OF DEPARTMENTATION  Departmentation by Function Departmentation by Products Departmentation by Territory Departmentation by Customer Departmentation by Process Composite Departmentation
  • 5. Functional Departmentation Board of Directors Managing Director Marketing Quality Control Production Processing material Finance Repairs and maintenance
  • 6. Product Departmentation Board of Directors Managing Director Plastics Finance Chemicals Production Metals Sales Personnel
  • 7. Territorial Departmentation Board of Directors Managing Director Northern Division Branch I Western Division Branch II Eastern Division Southern Division Branch III
  • 8. Customer Departmentation Board of Directors Managing Director Finance Wholesale Marketing Production Exports Personnel Retail
  • 9. Process Departmentation Board of Directors Managing Director Ginning Spinning Weaving Dyeing
  • 10. Composite Departmentation Managing Director Works Manager Marketing Manager Consumer Products Division Domestic Sales Manager Private Buyers Finance Manager Industrial Products Division Export Sales Manager Govt. Agencies
  • 11. DIVISION OF LABOUR Division of labour, the separation of a work process into a number of tasks, with each task performed by a separate person or group of persons. It is most often applied to systems of mass production and is one of the basic organizing principles of the assembly line. Breaking down work into simple, repetitive tasks eliminates unnecessary motion and limits the handling of different tools and parts. The consequent reduction in production time and the ability to replace craftsmen with lower-paid, unskilled workers result in lower production costs and a less expensive final product.