4. Disadvantages Reduces coordination between functions as the organization is divided into various parts Responsibilities for profits is at top only. Slow adaptation to change in environment. It increases the levels of management which is expensive and thus increases the gap between the top management and the workers Departmentation creates difficulties of communication among the various departments of the organization
5. Factors affecting Departmentation To get the benefits of specialization Control should be effective so as to ensure clear authority and responsibility Coordination should be taken into consideration Key activities need to be separated Expenses involved in creating separate departments
6. Basis Of Departmentation Functional Departmentation Product wise Departmentation Territorial or Geographical Departmentation Process wise Departmentation Customer wise Departmentation Time wise Departmentation
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8. Further functions in an organization are divided in two categories basic and secondary functions
9. Basic functions are those which are necessary for the smooth running of the business like production ,marketing , finance
10. When span of management is too large then further departments are created within the main departments they take care of secondary functions
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12. DEPARTMENTATION BY TERRITORY OR GEOGRAPHY Departmentation by territory or geography means “ Grouping of activities by area or territory is common in enterprises operating over wide geographic areas”. Organizations which are involved in banking , insurance , transportation Eg India could be divided into north , south , east , west , central zones Further North zone can be divided into Chandigarh , new Delhi , Jalandhar , Ajmer divisions
13. Process Departmentation In this processes involved in production or various type of equipments used are taken as basis of departmentation The basic aim to do process departmentation is to achieve economic benefit Eg process departmentation in case of textile organization can be by dividing the production into spinning , dyeing , weaving , finishing departments
14. Customer wise Departmentation Grouping of activities around marketing channels involves making an organization structure reflect the ways an organization reaches the ultimate customer Advantage of this type is that it focuses on customer who are the ultimate suppliers of money to the organization Eg in pharmaceutical companies different customers could be doctors , hospitals , government , retail stores Further it could be wholesale , retail , export
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18. APPAREL, SHOES & ACCESSORIESAccessories Baby Bags Boys Girls Juniors Men Shoes Women Atv, Motorcycle, RV Auto Electronics Car Care & Maintenance Exterior Accessories Interior Accessories Tires Tires Accessories Tools & Equipment Wal-mart Tyre & Lube Express
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23. It makes the executive alert & responsible in his duties.
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