DEPARTMENTATION

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. DEPARTMENTATIONIS 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. DEPARTMENTATIONBY 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. DIRECTOR-ENGG. **

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.