Departmentation in management. Departmentation in Library Management 2019-03-01

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Business Management: Departmentation

departmentation in management

. Since the members working in a department have similar background and interest, it gives rise to specialization which makes manpower more efficient and skilled. There is constant pressure from customer department for special treatment. Thus he enjoys satisfaction of being important to the organisation. It may create conflicts among managers of differentprocesses. Departmentation by Customers Departmentation by customers places greater emphasis on the customers and distinguishes one type from the other.

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Departmentalization in Management: Definition, Types & Advantages

departmentation in management

In functional departmentation, the decisionmaking process is delayed due to specialization. They may not specialise in all the functional activities. Appraisal: Appraisal of managerial performance becomes easier when specific tasks are assigned to specific personnel. In this structure, there are functional departments which have a functional manager, but members of the department are deputed to various projects or product groups. Some of the disadvantages are: 1. On the other hand, the sense of independence may result in a drift-off from the achievement of the overall objectives of the organization.


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Bases of departmentation

departmentation in management

Manufacturers ofproducts such as tyres, compressors, spare-parts, etc. Departmentation by customer categories The special and widely varied needs of customers for clearly defined service impel suppliers to departmentize on this basis. These departments require manpower and material so as to carryout operations. Sales people for one product will concentrate on sales promotion of that product only. An organization can structure itself into departments in the following ways. Functional departmentation is not suitable in such cases.

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Notes on Departmentation: Meaning, Importance and Basis

departmentation in management

The advantage of this type of grouping is obtaining efficiencies from consoliding similar specialties and people with common skills, knowledge and orientations together in common units. Departmentalization by Territory This form of departmentalization is applied specially in those organization that involve in business activities in different geographical locations. The advantages of this type of structure are as follows: i It is a logical reflection of functions. So it will be for the benefit of the organization to avail the services of specialists for doing specialized tasks. This helps to improve efficiency and economy of operations and enables people to become experts.


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What are the various bases of departmentation in an office ?

departmentation in management

Structure is a means to an end and therefore, must aid and facilitate the organistic members to carry out the organisation work. Departmentation by Task Force : When organisation has a number of projects, it forms task forces which consist of people from different units having different skills to complete those projects. Specialisation: Since workers in one functional area focus on that area only, they acquire expertise and specialised skills in performing their duties. It may create duplication of facilities. The merits and limitations of network structure are given in Table 10. For example, if the product does not earn profits, top managers cannot say with assertion whether the problem lies with production department or sales department. The assumption i c s that customers in each department have a common set of problems and needs that can best be met by specialists.

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Business Management: Departmentation

departmentation in management

Clarity of plans and Definiteness of Responsibilities supervision becomes easy and span may become wider. Furnishes means of tight control at top. The usually preceding functional organization might not be supporting the growth and spread of business across different types of products. Secondly, herein managers work as facilitators, coaches and mentors. Departmentation provides helps in both these areas. A separate department is created for a single product or product line and all functions like production, finance, marketing, personnel etc.

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Notes on Departmentation: Meaning, Importance and Basis

departmentation in management

But promotions, salary hikes and annual reviews come under the functional boss. Departmentation by Functions in management On the basis of functions undertaken by an enterprise, departments are created; This is a process of uniting people with similar activities to perform. Departmentation helps in the development of managers. The advantages of such departmentation types are: 1. At the same time, the need for developing and maintaining extensive external coordination mechanisms is reduced.

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Management Theory Review: Departmentation in Organizations

departmentation in management

On the other hand, the problem of aligning individual and organizational goals remains. Departmentation by enterprise function Henri Fayol identified technical, commercial, accounting, financial, security as five important activities and he added management as the sixth activities. However, when dedicated in-house departments are created, sometimes they add to staff and operational costs because the support work required may vary and during the down-side of fluctuating type of business. Clear identification of customers and their needs is the basis of customer departmentation. Shariful Islam Associate Professor Dept.

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Departmentalization

departmentation in management

Departmentalization by Customers This type of departmentalization is applied by those organization which deal differently with different types of customers. Introduction Organizations are formed when a group of individuals unite to accomplish a specific goal. He, thus, controls activities of his department to ensure that the product contributes to the organisational goals. Matrix organization Matrix organization combines functional and project or product patterns in the same organization structure. Managerial performance can be measured when the area of activities can be specified and standards in respect of these can be fixed.

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