14. Departmentation in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
Process departmentalization is when an
organization groups its activities by the production
process.
This is common in manufacturing and production
companies where there is a need for coordination
between different processes.
3. By Process
17. Departmentation in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
an organizational structure where employees are
grouped based on their geographical location or
territory.
For example, a company may divide its
operations into different regions, such as North
America, Europe, and Asia, with each region
being a separate department.
4. By Territory or Geographical Location
20. Departmentation in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
Grouping activities on the basis of common
customers or types of customers.
Jobs may be grouped according to the type of
customer served by the organization.
The assumption is that customers in each
department have a common set of problems and
needs that can best be met by specialists.
5. By Customer Wise
23. Departmentation in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
Departmentalization by time is when the creation
of departments is based on the working time such
as morning shift, day shift, and night shift.
It is done to provide flexible and timely service to
the customers in order to increase their
satisfaction level and also the employees.
6. By Time – Based
26. Principles of Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
A classic theory on management principles was written by Henry Fayol
Principles of an organization are basic statement or a
fundamental truth that provides understanding and guidance
to thinking and practice..
The principles of organization are a set of fundamental
concepts that guide the design and operation of
organizations.
28. Principles of Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
The authority flows downward in the line. Every individual is given authority to
get the work done.
Though authority can be delegated but responsibility lies with the man who has
been given the work.
If a superior delegates his authority to his subordinate, the superior is not
absolved of his responsibility, though the subordinate becomes liable to his
superior. The responsibility cannot be delegated under any circumstances.
1. Authority and Responsibility
32. Principles of Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
Span of control means how many subordinates can be supervised by a
supervisor.
The number of subordinates should be such that the supervisor should be able
to control their work effectively.
Moreover, the work to be supervised should be of the same nature. If the span
of control is disproportionate, it is bound to affect the efficiency of the workers
because of slow communication with the supervisors.
2. Span of Control
36. Principles of Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
Effective delegation has two elements: delegating
work to team members who have skills in that area,
and giving team members opportunities to develop
new skills.
To do this, make sure you clearly understand each
team member's strengths—as well as their interests.
3. Effective Delegation
40. Principles of Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
The principle means that assignment of work should be such that every
person should be given only that much work which he can perform well.
Some person is over worked and the other is under-worked, then the work
will suffer in both the situations.
The work should be divided in such a way that everybody should be able to
give his maximum.
4. Balance and Stability
41. Principles of Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
The organization should be amendable according to the changing
situations.
Everyday there are changes in methods of production and
marketing systems.
The organization should be dynamic and not static. There should
always be a possibility of making necessary adjustments.
4. Balance and Stability
48. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
49. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
50. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
1. Sole Proprietorship
51. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
1. Sole Proprietorship
52. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
53. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
54. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
2. Partnership Business
55. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
2. Partnership Business
56. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
2. Partnership Business
57. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
3. Joint Stock Business
58. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
3. Joint Stock Business
59. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
3. Joint Stock Business
60. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
4. Cooperative Society Business
61. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
4. Cooperative Society Business
62. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
4. Cooperative Society Business
63. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
64. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
65. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
5. Government – Sector Business
These are autonomous entities that sell commodities to
individuals and other organizations.
In formal terms, they have the features of both public and
private companies, because it can act like both public and
private organizations.
4. Cooperative Society Business
66. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
5. Government – Sector Business
Types of Government Sector Business
I. Governmental Department
II. Public Sector
III.Government Company
67. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
5. Government – Sector Business
i. Public Sector
68. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
5. Government – Sector Business
69. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
5. Government – Sector Business
i. Governmental Department
70. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
5. Government – Sector Business
ii. Public Cooperation
71. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
5. Government – Sector Business
iii. Government Company
72. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
5. Government – Sector Business
Comparison
73. Forms of Ownership in Organization
Behailu Z. (Ph.D. Cand.)
3. Organizational Management
5. Government – Sector Business
Comparison