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Information about DEPARTMENTATION

Published on February 17, 2014

Author: chandupulapa


DEPARTMENTATION: DEPARTMENTATION PRESENTED BY: CHANDRA SEKHAR DEPARTMENTATION: DEPARTMENTATION Meaning:- The process of identifying similar activities & grouping them and seperating them is commonly known as departmentation. Definition: Definition a means of dividing a large and monolithic functional organisation into smaller flexible administrative units”. -L.A ALLEN REASON FOR DEPARTMENTATION: REASON FOR DEPARTMENTATION For smooth running of bussiness Need of departmentation: Need of departmentation Specialization of work Limitation on number of subordinates that can be directly controlled by a superior. FEATURES: FEATURES It increases the operating efficiency of employees It makes executives alert and responsible in his/or her duties It increases the prestige and skill of the departmental head FACTORS: FACTORS The following guidelines should be kept in mind while establishing departmentation . Specialization Control Co ordination Cost benfit analysis BASIS OF DEPARTMENTATION : BASIS OF DEPARTMENTATION Departmentation by function Departmentation by product Departmentation by territory Departmentation by customer Departmentation by process Departmentation by functions: Departmentation by functions Grouping of activities according to the functions of an enterprise i.e production, sales and financing. Each department is headed by one responsible person who is liable to the general manager. Departmentation by product: Departmentation by product Grouping the activities based on goods and services a company offers. A single business unit may manufacture and sell different types of products Each department is responsible for manufacturing a product and selling it to its customers Departmentation by customer: Departmentation by customer Grouping activities that reflect a primary interest in customers It is preferred when various needs of the customer are different in nature Departmentation by territory: Departmentation by territory Grouping of activities by area or territory is common in enterprise operating over wide geographic areas. e.g the postal services of the country has adopted this system to provide like services across the nation. Departmentation by process : Departmentation by process Grouping activities based on the work processes necessary to complete production of goods and services It is followed when production activities are carried out in many places . Departmentation by time : Departmentation by time Grouping activities based on the time of the performance of business activities If the work is not completed with in the normal working hours , extra time will be given to complete it, only interested persons are requested to do the jobs and one person is responsible to supervise them What ever be the work performed after normal working hours , a separate department will be in charge of this type of activity

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