1. DEPARTMENTATION

2. 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

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

4. 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

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

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

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

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

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

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

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

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

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

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

16. 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

17. DISADVANTAGES: REQUIRES GOOD CALIBRE MANAGERS
INCREASE PROBLEMS IN CONTROL
BACK

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

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

21. 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

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

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

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

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

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

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

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

31. 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

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

33. 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

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

35. 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

36. 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:

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

38. 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 .

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

40. THE END.