Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Bases of Departmentation

Bases of Departmentation

  • Login to see the comments

Bases of Departmentation

  1. 1. DEPARTMENTATION ORDEPARTMENTALIZATION
  2. 2. MEANING Departmentation means the processby which similar activities of thebusiness are grouped into units for thepurpose of facilitating smoothadministration at all levels. It is the process of grouping activitiesof similar nature into departments
  3. 3. DEFINITIONAccording to Koontz and O’Donnell“Departmentation is a process of dividingthe large monolithic functional organizationinto small an flexible administrative units”
  4. 4. NEED AND IMPORTANCE1. Specialization2. Fixation of Responsibility3. Autonomy4. Smooth Functioning5. Performance Appraisal6. Development of Managers
  5. 5. Bases Of DepartmentationI. Functional DepartmentationII. Product DepartmentationIII. Territorial/Geographical DepartmentationIV. Process DepartmentationV. Customer DepartmentationVI. Time DepartmentationVII. Alpha-Numerical Departmentation
  6. 6. FUNCTIONAL DEPARTMENTATION Every manufacturing unit, has toperform certain basic functions such asProduction, Marketing, Finance andPersonnel.Each of these are grouped intoseparate departments such asProduction department, MarketingDepartment, Finance Department andPersonnel Department. This is knownas Departmentation by Functions.
  7. 7. Product departmentationGrouping of all activities necessary tomanufacture a product or product lineis called Product DeapartmentationHead of each department is known asProduct Manager
  8. 8. Territorial / GeographicalDepartmentationAlong with the increase in thecompany’s volume of business it mayfind it necessary to establish regionalfactories and branch offices to meet theincreasing demand for its products orservices.Eg. Banking , insurance ,transportation companies
  9. 9. Head Office(Mumbai)EasternZone(Kolkata)CentralZone(Kampur)Northern Zone(New Delhi)JalendherDivisionChandigarhDivisionNew DelhiDivisionBranch Branch Branch Branch BranchAjmerDivisionSouthernZone(Chennai)WesternZone(Mumbai)
  10. 10. Process DepartmentationIn process departmentation, processinvolved in production or various typeof equipments used are taken as basisfor departmentationVarious processes can be used as thebase of grouping of activities
  11. 11. Customer DepartmentationIn customer departmentation ,activities are grouped according to thetypes of customersEg. A large Readymade Garment Storemay have separate department eachfor women , men & children
  12. 12. Board of DirectorManaging DirectorFinance MarketingWholesale Retail ExportsProduction Personnel
  13. 13. Time Departmentation In some organisations, where work isperformed throughout the Day & Night, thework can be divided into Shifts Eg. Call Centre, Medicals Stores etcSupervisorDay Shift Evening Shift Night Shift
  14. 14. Alpha - numericalDepartmentation Alpha-Numerical Departmentation arecreated on the basis of number of peopleirrespective of the fact what they do, wherethey do & how they do Eg. Military Organisation
  15. 15. Merits of DeapartmentationI. Clear Division of ActivitiesII. Increase in EfficiencyIII. Proper ControlIV. Development of Capable MembersV. Knowledge of Departmental Costs
  16. 16. Demerits of departmentationI. DecentarlizationII. Difficulty in Selection of ManagersIII. Difficulty in Managerial TrainingIV. Uneconomical SystemV. Not Suitable for Small Enterprises

×