Departmentation

DEPARTMENTATIONDEPARTMENTATION

BIBLOGRAPHYBIBLOGRAPHY1. Essentials Of Management-1998;5th Edition By: Harold Koontz & Heinz Weihrich Ch.-Basic Departmentation pg-153-154

2. Principles & Practice Of Management-2003;8th Edition

By: T.N.Chabra Ch.-Departmentation pg-281-282

3. Edmund R.Gray & Larry R.Smeltzer Ch.-Organizing pg-354-356

4. Principles &Practice Of Mamagement Ch.- Design Of Organisational Structure-6th Edition By:L.M.Prasad; pg-318-325

INTRODUCTIONINTRODUCTION

Why We Need Departmentation? Why We Need Departmentation?

Basic need for departmentation arises Basic need for departmentation arises because for:because for:

1. Specialization of work.1. Specialization of work.

2. Simplification of managerial task.2. Simplification of managerial task.

3. Limitation on the number of 3. Limitation on the number of subordinates that can be directly controlled subordinates that can be directly controlled by the superiors.by the superiors.

IMPORTANCEIMPORTANCE

1.1. Increase of efficiency.Increase of efficiency.

2.2. Fixation of accountability.Fixation of accountability.

3.3. Advantages of specialization.Advantages of specialization.

4.4. Development of manager.Development of manager.

5.5. Facility in appraisal.Facility in appraisal.

6.6. Better control.Better control.

METHODS OF METHODS OF DEPARTMENTATIONDEPARTMENTATION

1.1. Departmentation by numbersDepartmentation by numbers : : An important method in organization of An important method in organization of

tribes & armies.tribes & armies. Success depends upon the manpower.Success depends upon the manpower. This method is not used in industrial This method is not used in industrial

organization these days.organization these days.

METHODS OF METHODS OF DEPARTMENTATIONDEPARTMENTATION

2. 2. Departmentation by timeDepartmentation by time : : One of the oldest form of One of the oldest form of

departmentation generally used at lower departmentation generally used at lower levels of organization.levels of organization.

For example : Hospitals ,Fire-brigade For example : Hospitals ,Fire-brigade depts.depts.

Advantages logical & time method•Is logical reflection of functions•Maintains power and prestige of major functions•Simplifies training•Furnishes means of tight control at top

Disadvantages •De-emphasis of overall company objectives •Reduces coordination between functions•Responsibility for profits is at the top only•Limits development of general managers

A CORPORATE EXAMPLEA CORPORATE EXAMPLE

Organization Structure At Unilever – An Organization Structure At Unilever – An Anglo-Dutch Multinational Corporation.Anglo-Dutch Multinational Corporation.

The executive officers are grouped into:The executive officers are grouped into:Functional areas .Functional areas .Product groups .Product groups .Geographic regions. Geographic regions.

Thank YouThank You