ronaldweinland.info - Free download as PDF File .pdf), Text File .txt) or read online for free. This article clearly state about the departmentalization and. Definition of Departmentation. Need for Departmentation. Bases of Departmentation. 7 Function. Product. Territory. Customers. Departmentation by Territory/Geographic Departmentation 4. Departmentation by Customers 5. Departmentation by Process 6. Combined Base.
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Bases of departmentation: Management. 1. Bases Of Departmentation. 2. Departmentation By ronaldweinland.info manufacturing unit, except a. structure, but one of another form of the organization structure is known as the departmentation. In departmentation we are going to study the bases of the. bases of departmentation - Download as Powerpoint Presentation .ppt /.pptx), PDF File .pdf), Text File .txt) or view presentation slides online.
Time Departmentalization: Under this method of departmentalization activities are grouped together on the basis of the time of the performance. This method is most suited to hospitals and other health care facilities where the round the clock patient care is essential. Merit of time departmentalization 1. Services can be reentered round the clock. It is possible to use processes that required uninterrupted continuing cycle. Expensive equipment can be used continuous B.
Number basis. Departmentation by Function The most commonly accepted practice is the grouping of the activities in accordance with the functions of an enterprise. The basic enterprise functions generally consist of production, marketing, finance, etc.
This method is more logical and hence present in almost all enterprises at some level. Merits of Departmentation by function 1.
It is a logical and time proven method. This method follows the principle of specialization. Authority and responsibilities can be clearly defined and fixed. Since the top managers are responsible for the end results, control shall become effective. Demerits of Departmentation by function 1. This type of departmentation shall develop a loyalty towards the functions and not towards the enterprise as a whole.
Coordination of different functions shall become difficult. Only the departmental heads are held responsible for defective work. This pattern is not a best training ground for promotable top management people. Image: Departmentation by Function Chart 2. Departmentation by Territories When the organization is large and geographically dispersed, departmentation on territorial basis is the best.
This is also considered suitable where the branches produce the same goods or perform similar services at various locations. Merits of Departmentation by Territory Departmentation on territorial basis has many points to its credit.
This method is highly suitable when the needs of the local customers are to be satisfied effectively. Certain economies of localized operation can be availed. Sales activities can be conducted more effectively. Sales personnel can spend more time on sales rather than on traveling. The executives of territorial departments shall become thoroughly familiar with the key details and can take on the spot decisions in times of emergency.
The department has an excellent training situation for all round managers needed in the future at higher levels.
Demerits of Departmentation by Territory 1. This type of departmentation requires more persons with general managerial abilities needed in the future at higher levels.
Coordination shall become difficult and the problem of maintaining top management control shall also acute. Territorial grouping may sometime cause some problems if authority over financial matters is also decentralized. Image: Departmentation by Territories Chart 3.
Departmentation by Process Activities can also be grouped according to the process involved or the equipment used, This form of departmentation is often employed in manufacturing enterprises. It is also called equipment departmentation. Large retail or marketing enterprises may also have process departments for receiving goods in stores, transportation, wrapping and delivery.
Departmentation by process is usually decided on the basis of costs that is mainly on economic considerations. Merits of Departmentation by Process The following are the important merits of this type of departmentation: 1. It is suitable for all organizations irrespective of their size. The equipment can be economically used to their maximum capacity. It saves money and consequently reduce the cost of production. Better timing and customer service can be ensured.
Image: Departmentation by Process Chart 4.
Departmentation by Product This type of departmentation is desirable for large undertakings which deal with a variety of products or product lines. Employees engaged in day and night shifts may suffer from fatigue. Shift causes problem of co-ordination and communication.
Paying overtime may result increase in product or service cost 3. Functional Departmentalization: It is the most logical, widely used and basic form of departmentalization. Under this method activities are grouped on the basis of the functions of enterprises. The basic functions are production, selling and financing. This method is universally popular. Advantages of Functional Departmentalization 1. It is scientific and time tested method. It follows the principles of specialization and division of labour.
It ensures performance control and it preserves the importance of each of activities. Due weightage and prestige are given to managers and respected. Disadvantages of Functional Departmentalization 1. It makes management control work more difficult. Increases work load and responsibility of managers.