Mba Departmentalization

1. Course: MBA
Subject: Introduction to Management
Unit: II

2. i. Functional
ii. Product
iii. Process
iv. Territory
v. Customer
vi. Time
vii. Matrix

3. Positions are grouped according to their main
functional (or specialized) area.
MD
Prod. HR Fin Marketing
Advertising sales MR

4. Product divisions are divisions created to concentrate on a
single product or service
CEO
Car
division
Truck
division
marketing Fin prod
Bus
division

5. Activities are subdivided on the basis of their
processes of production
Similar machines are grouped into separate
sections

6. Geographic divisions are divisions designed to serve
different geographic areas.
HQ (Bombay)
East Zone
(Kolkata)
Central
Zone(Kanpur)
Ajmer
Division
Branch Branch
Chandigarh
division
Jalandhar
division
North Zone
(Delhi)

7. Customer divisions are divisions set up to service particular
types of clients or customers.
Ex. Pharma company supplies their products to hospitals,
govt., retail stores, other company etc
HQ
(Bombay)
Govt
Retail
store
hospitals
Other
company

9. departments are separated based on the
division of their working time or job shifts.

10. Matrix management is a type of
organizational management in which people
with similar skills are pooled for work
assignments.
An organization with a matrix structure has a
functional and a divisional structure at the
same time.
Report to two bosses

11. For example, all engineers may be in one
engineering department and report to an
engineering manager, but these same
engineers may be assigned to different
projects and report to a different engineering
manager or a project manager while working
on that project. Therefore, each engineer
may have to work under several managers to
get their job done.

12. Multiple command-and-control structure in which
some employees have dual responsibilities and
dual bosses. These employee report to
one boss (a project manager, for example)
for day to day operations, and to another boss (the
departmental head, for example)
for functional responsibilities.
This approach is most suited to situations with
fluctuating workloads, such
as managing large projects or product
development processes.

13. 1

15. 3

16. All the powers of decision making are
concentrated in top management
CEO
Marketing
manager
Finance
manager
HR
manager
Production
manager
R & D
manager

17. Power and authority are delegated to lower
levels.
When org is so large, to reduce burden of top
management, operations are geographically
isolated
- Advantages:
- Faster decision
- Development of lower level
- Top manager can concentrate on other issues
- Lower level can make good decision as they
are close to the problem

18. HQ (Bombay)
East Zone
(Kolkata)
Central
Zone(Kanpur)
Ajmer
Division
Branch Branch
Chandigarh
division
Jalandhar
division
North Zone
(Delhi)

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