DEPARTMENTATION

1. EASWARI ENGINEERING COLLEGE
(AUTONOMOUS)
GROUP PRESENTATION
PRINCIPLES OF MANAGEMENT

2. DEPARTMENTATION

3. MEANING
• ‘Departmentation’ or ‘departmentalization’ is the
process of classifying the activities of the enterprise
into several units for the purpose of administration
at all levels. Departmentation means division of
work into smaller units and their re-grouping
into bigger units (departments) on the basis of
similarity of features. Each department is
headed by a person known as departmental
manager.

4. IMPORTANCE
 Increases Efficiency
 Fixes Responsibility
 Managerial Appraisal
 Better Budgeting
 Specialization
 Helps in HRM
 Coordination and Control

5. TYPES OF DEPARTMENTALIZATION

6. FUNCTIONAL DEPARTMETS
Pros
•Each department can be appointed by experts
in that functional area.
•Supervision is also facilitated because an
individual manager should only be familiar with
a relatively narrow set of skills.
•Coordination activities are easy within each
department.
CONS
It emerges as an organization as it becomes
increasingly difficult to monitor accountability
and performance.

7. PRODUCT DEPARTMENTS
PROS
•Decision making speed and impact are enhanced.
•The performance of individual products or product
groups can be more easily and objectively
evaluated, which will improve departments’
accountability for the results of their activities.
CONS
•Managers in each department can focus on their
own product or product group to include the rest of
the organization.
•The cost of administration may increase as each
department must have its own functional experts for
areas such as market research and financial
analysis.

8. •The major advantage is that the organization is able to use skilled
experts to deal with unique customers or customer groups.
•A disadvantage is that fairly large, administrative staffs are required to
integrate the activities of the various departments to ensure that the
organization in one area does not over commit itself.

9. •The primary advantage is that it enables the organization to easily respond to unique
customer and / or environmental characteristics in various areas.
•A disadvantage is that the organization must keep track of units at different locations,
a larger administrative staff may be required.

10. SPAN OF CONTROL

11. FACTORS AFFECTING OF SPAN OF
CONTROL
 Capacity of superior
 Capacity of subordinates
 Nature of work
 Degree of planning
 Communication Techniques
 Use of staff assistance
 Supervision of others

12. TYPES OF SPAN OF CONTROL

13. NARROW
 PROS
 Close supervision
 Close control of subordinates
 Fast communication
 CON’S
 Too much control
 Many levels of management
 Excessive distance between lowest level and
highest level

14. WIDE
 PROS
 More Delegation of authority
 Development of Managers
 Clear policies
 CON’S
 Overloaded supervisors
 Danger of superiors of control
 Requirement of highly trained managerial
personnel

15. • CENTRALIZATION
It is the process of transferring and
assigning decision-making authority
to higher levels of an organizational
hierarchy. The span of control of top
managers is relatively broad, and
there are relatively many tiers in the
organization.
• DECENTRALIZATION
It is the process of transferring and
assigning decision-making authority
to lower levels of an organizational
hierarchy. The span of control of top
managers is relatively small, and
there are relatively few tears in the
organization, because there is more
autonomy in the lower ranks.

17. EXAMPLE FOR CENTRALIZATION
 Apple is an example of a business with a centralized management
structure. Within Apple, much of the decision-making responsibility lies
with the Chief Executive Officer (CEO) Tim Cook, who assumed the
leadership role within Apple following the death of Steve Jobs.

18. EXAMPLE OF
DECENTRALIZATION
 Hotels, supermarket and
Dress showrooms are
good example for
decentralisation becauses
it is not possible for one
preson to focus on more
than 100 branches which
have branches throughout
the world.

19. “THANK YOU”