DEPARTMENTATION

THE TERM : ‘DEPARTMENT’ DEPARTMENT DESIGNATES A DISTINCT AREA , DIVISION OR BRANCH OF AN ENTERPRISE OVER WHICH A MANAGER HAS AUTHORITY FOR THE PERFORMANCE OF SPECIFIED ACTIVITIES THE LIMITATION ON THE NUMBER OF SUBORDINATES THAT CAN BE DIRECTLY MANAGED WOULD RESTRICT THE SIZE OF ENTERPRISES, IF IT WERE NOT FOR THE DEVICE OF DEPARTMENTATION

DEPARTMENTATION IS DONE BY SIMPLE NUMBERS TIME ENTERPRISE FUNCTION TERRITORY PRODUCT CUSTOMER MARKET-ORIENTATION PROCESS / EQUIPMENT SERVICE GOTOMATRIX ORGANISATION:

DEPARTMENTATION BY SIMPLE NUMBERS ONCE AN IMPORTANT METHOD IN TRIBES, ARMIES ETC BASED ON WORK –FORCE BASIS NOW ON A DECLINE DUE TO SPECIALISATION ALSO AS IT IS USED MORE ON THE LOWER LEVELS OF ORGANISATION STRUCTURE BACK

DEPARTMENTATION BY TIME OLDEST FORMS OF DEPARTMENTATION USE OF TIME SHIFT WORKERS PROBLEM CROPS UP IN THE ‘GRAVEYARD SHIFT’ MANAGEMENT THEN IS DIFFICULT BACK

DEPARTMENTATION BY ENTERPRISE FUNCTION WIDELY ACCEPTED PRACTICE HOW DID THIS COME ABOUT? FUNCTIONAL DEPARTMENTATION VERY USEFUL

ADVANTAGES: LOGICAL AND TIME PROVEN POWER AND PRESTIGE CONCENTRATED AT THE TOP OCCUPATIONAL SPECIALISATION SIMPLIFIES TRAINING ACCOUNTABILITY TIGHT CONTROL

DISADVANTAGES: “WALLS” BETWEEN DEPARTMENTS RESPONSIBILITY FOR PROFITS ON TOP ONLY OVERSPECIALISES REDUCES CO-ORDINATION BACK

DEPARTMENTATION BY TERRITORY ATTRACTIVE TO LARGE SCALE FIRMS ACTIVITIES ARE PHYSICALLY AND GEOGRAPHICALLY SPREAD E.g.: L.I.C ; INCOME TAX DEPT etc.

EAST CENTRAL S.E S.W WEST PERSONNEL ENGG. PRODUCTION ACCOUNTING SALES

ADVANTAGES: PLACES RESPONSIBILITY AT LOWER LEVEL IMPROVES CO-ORDINATION BETTER COMMUNICATION MORE FOCUS ON LOCAL MARKETS FURNISHES GOOD TRAINING GROUND FOR FUTURE MANAGERS

DISADVANTAGES: REQUIRES GOOD CALIBRE MANAGERS TENDS TO MAKE CENTRAL SERVICES DIFFICULT INCREASES PROBLEMS OF CONTROL BACK

DEPARTMENTATION BY PRODUCT GROUPING ON THE BASIS OF PRODUCT REDUCES COMPLEXITY IN MANAGERIAL FUNCTIONS

ELEC. METER DIV. INSTRUMENT DIVISION INDICATOR LIGHTS DIV. INDL. TOOLS DIV. ENGG. PROD. ACCOUNTING

ADVANTAGES: PLACES ATTENTION AND EFFORT ON PRODUCT PLACES RESPONSIBILITY FOR PROFITS AT DIVISIONAL LEVEL IMPROVES CO-ORDINATION OF FUNCTIONAL ACTIVITIES GOOD TRAINING FOR FUTURE MANAGERS PERMITS GROWTH AND DIVERSITY OF PRODUCTS AND SERVICES

DISADVANTAGES: REQUIRES GOOD CALIBRE MANAGERS INCREASE PROBLEMS IN CONTROL BACK

CUSTOMER DEPARTMENTATION CUSTOMERS ARE THE KEY TO THE WAY ACTIVITIES ARE GROUPED USED IN DIFFERENT KINDS OF ENTERPRISES E.g. EDUCATIONAL INSTITUITIONS

ADVANTAGES: CONCENTRATION ON CUSTOMER NEEDS GIVES THE CUSTOMER THE FEELING THAT THE SUPPLIER IS VERY UNDERSTANDING DEVELOPS EXPERTISE IN CUSTOMER AREA

DISADVANTAGES: CO-ORDINATION OF ACTIVITIES BETWEEN COMPETING CUSTOMERS REQUIRES A MANAGER WHO IS AN EXPERT IN CUSTOMERS’ PROBLEMS CUSTOMER GROUPS HAVE TO BE PROPERLY DEFINED BACK

MARKET-ORIENTED DEPARTMENTATION DEPARTMENTATION AROUND MARKETING CHANNELS USED LIKE CUSTOMER DEPARTMENTATION , ONLY THIS CONCENTRATES ON CHANNEL

ADVANTAGES: CONCENTRATES ON MARKETS AND MARKETING CHANNELS DEVELOPS OPPORTUNITIES FOR MORE EFFICIENT MARKETING ACTIVITIES

DISADVANTAGES: LOSS OF CONCENTRATION ON PRODUCT GROWTH, PROFITS TRAINING PEOPLE TO THINK IN TERMS OF MARKET RATHER THAN PRODUCT PROBLEMS IN CO-ORDINATION BACK

PROCESS / EQUIPMENT DEPARTMENTATION: EMPLOYED IN MANUFACTURING ESTABLISHMENTS DEPARTMENTS CARRY OUT PARTICULAR OPERATIONS GIVES RISE TO A DEGREE OF DECENTRALISATION ACHIEVES ECONOMIC ADVANTAGE BACK

SERVICE DEPARTMENTS: SPECIALISED DEPARTMENT FOR PURPOSE OF EFFICIENCY AND CONTROL TEND TO BE USED TO PROVIDE EXPERT ADVICE “AUXILIARY” OR “SUPPORT “ DEPARTMENTS

ADVANTAGES: COST SAVING DEVELOPMENT OF HIGH DEGREE OF EXPERTNESS IN SPECIALIST SERVICE

DISADVANTAGES: DANGERS OF “ EFFICIENT INEFFICIENCY” DANGER OF SERVICE DEPARTMENTS EXERCISING TOO MUCH CONTROL PROBLEMS OF OBTAINING ADEQUATE SERVICE

SERVICE DEPTS SHOULD REMEMBER THAT-- THEIR TASK IS SERVICE THEY SHOULD BE AS CLOSE TO THE POINT OF SERVICE AS POSSIBLE THEY SHOULD CHARGE SERVICE COSTS TO THE USERS NEVER OVERLOOK POSSIBILITIES OF USING OUTSIDE SERVICES BACK

MATRIX ORGANISATION: COMMONLY CALLED THE “GRID” ORG. COMPROMISE BETWEEN FUNCTIONAL AND PRODUCT DEPARTMENTALISATION WHY IS IT USED? SBUs – THE STRATEGIC BUSINESS UNIT GOTO

MANAGER CHIEF-PRELIM. DESIGN CHIEF MECH. ENGR. CHIEF ELEC. ENGR. DIRECTOR-ENGG. ** MANAGER CHIEF-PRELIM. DESIGN CHIEF MECH. ENGR. CHIEF ELEC. ENGR. CHIEF. HYDRAULIC ENGR. PROJECT A PROJECT B PROJECT C PROJECT D

WHY IS IT USED? ENTERPRISES AND CUSTOMERS INTERESTED IN END RESULTS PRESSURE TO ESTABLISH RESPONSIBILITY FOR THE RESULTS PRESSURE FOR RESOURCES BACK

STRATEGIC BUSINESS UNITS DISTINCT LITTLE BUSINESSES SET UP IN A LARGER COMPANY TO ENSURE THAT A CERTAIN PRODUCT IS HANDLED AS AN INDEPENDENT UNIT GE BEGAN THIS

SBU HAS.. ITS OWN MISSION DISTINCT FROM OTHER DIVISIONS DEFINABLE GROUPS OF COMPETITION PREPARES ITS OWN PLANS MANAGES ITS OWN RESOURCES A PROPER SIZE ITS OWN MANAGER MATRIX ORGANISATION:

WHICH IS THE BEST PATTERN? DEPENDS… SHOULD FACILITATE ACHIEVEMENT OF OBJECTIVES MIXING OF DIFFERENT TYPES OF DEPARTMENTATIONS? PRINCIPLE OF DIVISION OF WORK…

PRINCIPLE OF DIVISION OF WORK: THE MORE AN ORGANISATION STRUCTURE REFLECTS THE TASKS OR ACTIVITIES NECESSARY TO ATTAIN GOALS AND ASSISTS IN THEIR CO-ORDINATION, AND THE MORE ROLES ARE DESIGNED TO FIT THE CAPABILITIES AND MOTIVATIONS OF PEOPLE AVAILABLE TO FILL THEM, THE MORE EFFECTIVE AND EFFICIENT AN ORGANISATION STRUCTURE WILL BE .

FAYOL SAYS: DIVISION OF WORK ENABLES US TO PRODUCE MORE AND BETTER WORK WITH THE SAME EFFORT.

THE END.