This presentation introduces departmentalization, which is the process of grouping jobs into departments. There are four main types of departmentalization: functional, product, customer, and location. Functional departmentalization groups activities by function, product departmentalization groups by product line, customer departmentalization groups by type of customer, and location departmentalization groups by geography. The presentation provides examples of each type and discusses other considerations for departmentalization, concluding that managers should understand the strengths and weaknesses of different approaches.

1. Welcome to Our
Presentation

2. NAME ID
Ashraful Islam- 5505
Sabiha Sultana 5502
Md. Hafizur Rahman 5447
Md. Kauser Ahamed 5513
Nusrat Jahan 5497
Shamira Sultana 4204
GROUP MEMBERS

3. Grouping Jobs

4. Introduction:
Grouping jobs is the second building block of
organization Structure. The process of grouping
jobs is also called departmentalization.

5. Grouping Jobs: Departmentalization
Departmentalization: is the process of grouping
jobs according to some logical arrangement.
In smaller organizations, the owner-
manager/partner may be able to personally
oversee everyone who works there.
As an organization grows, new managerial
positions are created to supervise work of others
grouped according to some plan which leads to the
creation of departments.

6. Types of Departmentalization:
There are four types of Departmentalization.
 Functional Departmentalization
 Product Departmentalization.
 Customer Departmentalization.
 Location Departmentalization.

7. Functional departmentalization:
Grouping activities by functions performed. Activities
can be grouped according to function (work being done)
to pursue economies of scale by placing employees with
shared skills and knowledge into departments for
example human resources, IT, accounting,
manufacturing, logistics, and engineering. Functional
departmentalization can be used in all types of
organizations.

9. Product Departmentalization
Grouping activities by product line. Tasks can
also be grouped according to a specific product
or service, thus placing all activities related to the
product or the service under one manager. Each
major product area in the corporation is under the
authority of a senior manager who is specialist
in, and is responsible for, everything related to
the product line. LA Gear is an example of
company that uses product departmentalization.
Its structure is based on its varied product lines
which include women’s footwear etc.

11. Customer Departmentalization:
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. The sales activities in an office supply
firm can be broken down into three departments that
serve retail, wholesale and government accounts

13. Location Departmentalization:
Grouping activities on the basis of territory. If an
organization's customers are geographically dispersed,
it can group jobs based on geography. For example,
the organization structure of Coca-Cola has reflected
the company’s operation in two broad location areas –
the North American sector and the international sector,
which includes the Pacific Rim, the European
Community, Northeast Europe, Africa and Latin
America groups.

15. Other Forms of Departmentalization may
include:
Departmentalization by Time: grouping
certain activities by time – shift system in which
each shift has its own superintendent, who
reports to the plant manager, and functional
departments.
Hospitals and airlines use time as well to
departmentalize.
Departmentalization by Sequence:
university registration by senior, junior, etc;
credit checks by employees according to
customer name; insurance company claim
division by policy number.

16.  Other Considerations for Departmentalization:
 In some large organization, departments may be referred to
as Divisions, Units, Sections and Bureaus.
 Regardless of the label used, they represent groups of jobs
that have been tied together according to some unifying
principle.
Almost all organizations are likely to use multiple bases of
departmentalization, depending on level.
 It is quite common that organizations use a variety of bases
of departmentalization for different levels and different sets of
activities.

17. Conclusion:
Manager need to understand throughly the
strengths and implications weaknesses of each
common method to approach to
departmentalization for their own unique
circumstances