Bases of Departmentation

1. DEPARTMENTATION…

2. INTRODUCTION…
Departmentation is a part of the organization
process. It involves the grouping of common
activities under a single person’s control. The
activities are grouped on the basis of a function of
the organization. This work is done by a Chief
Executive of the concerned organization.

3. MEANING…
Departmentation means the process by which
similar activities of the business are grouped into
units for the purpose of facilitating smooth
administration at all levels.

4. DEFINITION…
According to Koontz and O’Donnell
“Departmentation is a process of dividing the
large monolithic functional organization into small
an flexible administrative units”
Departmentation refers to the classification of
activities on operations of an undertaking into
functionalized categories.

5. NEED AND Importance…
1. Departmentation increases the operating efficiency of
the employees.
2. There is a fixation of responsibilities to various
executives of the organization.
3. The departmental heads (managers) are given certain
powers and are allowed to take their own decisions.
4. The workings of various departments are evaluated by
the top management and the department not
managed properly are identified.

6. FACTORS…
1. Specification: Departmentation should yield the
advantages of specialization.
2. Control: There should be proper control under
Departmentation and simplification of the control
process.
3. Recognition of Local Conditions: Departmentation
should take into consideration the local conditions of
the place concerned.
4. Economy: It should be borne in the mind that expenses
are incurred in the creation of separate departments.

7. Organization structure…

8. Etymology…
The word Organisation is derived from the word
Organism which means a structure of body divided
into parts that are held together by a fabric of
relationship as one organic whole.

9. INTRODUCTION…
In an enterprise, many managers and employees
work together for achieving common objectives.
In simple words, organising means arranging the
ways and means for the execution of a business
plan.
All organisations at their inception must have their
own clear vision and an articulation of purpose, if
they are to be successful.

10. MEANING…
In the words of Kast and Rosenzweig,
Structure is the established pattern of relationships
among the component parts of the organisation.

11. SIGNIFICANCE…
1. Facilitates Administration: Effective administration of
business will not be possible without the support of
sound organisation structure.
2. Facilitates Coordination: Its acts as means of bringing
coordination and integration among the activities of
individuals and departments of the enterprise.
3. Facilitates Division Of Work: Different departments are
created by division of work, specialisation and orderly
working of the enterprise.
4. Determines Individual Responsibility: Responsibility is
an obligation to perform an assigned work.

12. fORmal organiZation.
1. Formal Organisation is
created by top management
deliberately and consciously.
2. It can be shown through
organisation charts.
3. The superior-subordinate
relationship is clearly defined.
4. Communication is normally
through formal channels.
5. It is suitable to large business
enterprises.
Informal orGanIzation.
1. Informal Organisation
develops by social forces
existing within the Formal
Organisation.
2. It cannot be shown through
organisation charts.
3. The superior-subordinate
relationship is absent.
4. Communication is normally
through grapevine.
5. It is suitable to small business
enterprises.