DEPARTMENTS

1. ORGANIZATION
DEPARTMENTATION

2.  “The process of identifying & grouping the work is to be
performed ,defining & delegating responsibility &
authority & establishing relationship for the purpose of
enabling people to work most effectively together in
accomplishing objectives”
-

3. 1. Deliberate & conscious creation
 Orgenisation is a deliberately & consciously created human group.
 Orgenisation can also recombine its personnel through promotion ,demotion
& transfer
2. Purposive creation
 All the orgenisation have some objectives
 The objectives are mutually agreed upon the members of the groups.
3. Coordination of activities
 Coordination is necessary because all the members contribute to commonly
agreed goal
4. Structure
 Structure provides power centers which co-ordinate & control concerted
effort of the orgenisation & direct towards its goals.
5. Rationality
 Every orgenisation has some specified norms & standards of behaviour
 Every individuals & every member should behave according to these norms

4.  Organizational structure is the pattern of relationship
among various components or parts of the orgenisation.
 Organization structure refers to the differentiation &
integration of activities & authorities ,role & relationship
in the orgenisation

5.  Features of good organization structure.
o Clear line of authority.
o Adequate delegation of authority.
o Application of ultimate responsibility.
o Minimum managerial levels.
o Unity of direction.
o Proper emphasis on staff activities.
o Simplicity.
o Flexibility.

6.  The process of grouping the activities known as
departmentation
 Departmentation means the process by which similar
activities of the business are grouped into units for the
purpose of facilitating smooth administration at all levels
 According koontz & O,Donnell a departmentation is process
of dividing the large functional orgenisation into small &
flexible & administrative unit.
 Choosing basis for departmentation
 Specialization
 Coordination
 Control
 Economy
 Recognition of local condition
 Adequate attention
 Human consideration

7.  Types of departmentation/ways to structure the
business
1. Departmentation by product
2. Departmentation by function
3. Departmentation by region or territory
4. Departmentation by customer
5. Departmentation by process

8.  Grouping of activities according to products or
product lines , especially in multiline, large
enterprises.

9. Product departmentation
Car Division Truck Division Bus division Long vehicle
Chief Executive
production
Marketing finance HR

10. Advantages
 Clear focus on market segment helps meet customers’ needs
 Positive competition between divisions
 Better control as each division can act as separate profit
centre
 Improve coordination of functional activities.
 Places responsibility for profit at division level.
 Places attention & effort on product line.

11.  Duplication of functions (e.g. different sales
force for each division)
 Negative effects of competition
 Lack of central control over each separate
division.
 Require more personal with general manager
abilities .
 Trend to make maintained of economical
central services difficult

12. 2.Functional departmentation
 The grouping of common & homogeneous activities to form
an organizational unit is known as functional orgenisation
 Function are two types basic function & secondary function
 basic function can be divided into sub-function
 Each department have a head with the title departmental
manager
 The functional departmentation will include both line
function as well as staff function
Production Marketing Accounts Personnel IT
Managing Director
Board of Director

13. Advantages
 Specialisation – each department focuses on its own work
 Accountability – someone is responsible for the section
 Clarity – know your and others’ roles
 Simplifies training

14.  Closed communication could lead to lack of
focus
 Departments can become resistant to change
 Reduce Coordination between function
 Gap between top and bottom

15.  .

16.  Territorial Orgenisation is especially attractive to large
scale firms or rather enterprises whose activities are
physically or geographically dispersed.
 All the activities of given area of operation are grouped
into zone ,division ,branches
 This structure is suitable for large scale orgenisation or
whose activities are physically or geographically spread.
 This structure is most often used in sales & in production

17. Eastern Zone
Kolkata
Central Zone
Kolhapur
Northern zone
Delhi
Southern zone
Chennai
Western zone
Mumbai
Head Office
Mumbai
jalandha
r
chandigarh New
delhi
ajmer
branch branch branch branch

18.  Place responsibility at lower level
 Place emphasis on local market & problem
 Take advantage of economic of local operations
 Better face to face communication with local
interest
 Improve coordination in a region
 Serve local needs better

19.  Require more person wit general manager
abilities .
 increases problem of top management control
 Require good caliber managers
 Increase problems of control

20.  Customer based departmentation is basically market –
oriented in which department are created around the
market served or around marketing channel
 CUSTOMERS ARE THE KEY TO THE WAY
ACTIVITIES ARE GROUPED
wholesale Retail Hire purchase
export
Marketing Manager

21.  It fulfills the expectation & needs of customer
 Better service to customer
 Fully focus on customer
 Disadvantage
 Their may be duplication of activities
 Co-ordination is difficult
 Conflict

22.  When production activities involve the use of
several distinctive process ,these can be used as
the base for grouping of activities
spinning dyeing Weaving Packaging
Production Manager

23.  Advantage
 Machine can be used effectively
 Economy in operation
 No duplication of activities
 Principle of specialization & division of labor is followed
 Disadvantages
 Heavy cost of operation
 More specialist are essential

24.  COMMONLY CALLED THE “GRID” ORG.
 Matrix orgenisation structure is the realization of two
dimensional structure
 Matrix structure applied when the orgenisation has large
number of smaller projects so that when one project is
completed it resources are directed to other project
 Project manager is appointed to coordinate the activities of the
 Personal are drawn from their respective functional
departments
 Employee should receive instruction from two boss
 Application:-insurance & retailing , manufacturing electronics
equipment ,industrial product

25. • MANA
GER
Producti
on
Marketin
g
Finance personnel
• PROJEC
T A
• prod • Mktg • Finance • pers
• PROJEC
T B
• prod • Mktg • Finance • pers
• PROJEC
T C
• prod • Mktg • Finance • pers
• PROJEC
T D
• prod • Mktg • Finance • pers
DIRECTOR-ENGG. **
Project authority
Line authority

26.  Matrix structure focuses resources on single project ,
permitting better planning & control
 Flexible structure compared to traditional hierarchical
structure
 It improves motivation because people can focus more
on completion of one project than they can in the
traditional functional structure

27.  People have to work under multiple command
 Delay in decision making process

28.  Companies have been using an organizational
device generally referred to as a strategic
Business unit (SBU).
 Distinct businesses set up as units in a larger
company to ensure that certain product or
product lines are promoted and handled as
though each were an independent business.

29.  The virtual organization is a rather loose
concept of a group of independent firms or
people that are connected through, usually,
information technology.
 This firms may be suppliers, customers, and
even competing companies.

30.  The aim of virtual organization is to gain access
to another firms competence, to gain flexibility,
to reduce risk, or to respond rapidly to market
needs.