A Presentation On Organizational Structure: Departmentation . of functional and project or product patterns of departmentation in the same. Departmentation – Management. 1. DEPARTMENTATION 2. INTRODUCTION Departmentation is a part of the organizationprocess. Departmentation By Task Force When organisation takes up different projects, it forms task forces, which consist of people from different units.

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Departmentation by projects By OpenStax (Page 2/2) |

He ensures that activities are performed strictly according to rules and procedures laid down for the department. Eliminating or lessening surprises.

Many banks have separate departments for mortgages, checking accounts and commercial loans. The next tightest interdependencies are the sequential interdependencies between dpartmentation and assembly, since first you make the materials, then you assemble them. This form of departmentation is suitable for small organisations where limited number of products with limited processes are produced.

Here are six common bases for departmentation: This can affect efficiency of the process. Departmentation provides help in both these areas. This type of departmentation is useful for the enterprises which sell a product or service to a number of clearly defined customer groups.

Other factors affecting supply chain management. So, the pattern and number of departments should be projet decided that maximum possible economy is achieved in the utilisation of physical facilities and personnel.

References, and further literature. Centralized versus decentralized organizations. Bargaining power of suppliers. Departmentation facilitates control by departmental manager over the activities of his department only.

If workers are not able to carry out the activities efficiently, managers can train them to do so. It is not unusual to see firms that utilize the function and project organization combination. Projects and task forces or teams are generally unique—designed to work on a nonrecurring project. So, along with the technical factors discussed above, departments should be created on the basis of availability of personnel, their attitude, aspiration and value systems, informal work groups, cultural patterns, etc.


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Notes on Departmentation: Meaning, Importance and Basis | Organisation

Different local conditions can create problems of understanding. It is obviously not possible for one functional manager to manage efficiently such widely spread activities. Activities are divided into smaller segments, standards of performance can be framed, factors affecting performance can be identified and control can be more objective in nature.

Basic types of accounts.

For example, it’s hard to conceive of one person building an office building. The special feature of the matrix is that employees have two proect — the functional boss parent department and the project pass host department. The enterprise may be divided into departments on the basis of functions like production, purchasing, sales, financing, personnel etc.

Importance and goals of competitive intelligence. Market research to determine the potential market for funeral services in Monterrey, Mexico. These sub-departments can be further sub-divided if needed. Stopping growth by selling the firm. This method of departmentation results in optimum utilisation of machines as they work continuously which otherwise may remain idle. What organizations actually do is group people in a way that relates to the task they perform.

An organization can divide itself into departments any way it wants using any criteria it wants — there is no law about it. This develops their potential to be promoted to higher managerial positions in the organisation.

Departments are created on the basis of number of people who form the department. The production, purchase, personnel and marketing deppartmentation are looked after by departmental managers but finance is vested at the headquarters.

Departmentation: Its concept, Structure, Benefits and other Details

Moving from deparmentation one-person band to an orchestra. This would be impossible in most cases. Dividing the work naturally means the identification of individual activities which have to be undertaken for the attainment of the organisational objectives.

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Division of organisation on the basis of geographic dispersal of activities appears on the organisation chart as follows: Product departmentation, along with various functional areas appear on the organisation chart as follows: Marketing managers have to balance the time and money spent in framing policies so that organisation can adapt to the changing customer environment. Functional departmentation can be used for any type of organisation. Manufacturing paper, for example, requires processes like crushing the bamboo, making pulp, purifying the pulp, making paper rolls, and cutting it into rims.

All the primary and auxiliary activities are managed by one manager. An educational institution which provides academic and non-academic subjects vocational subjectsfull-time or part-time courses, morning or evening shifts is a typical case of customer departmentation.

Association for Small Business and Entrepreneurship annual conference, Baltimore, Maryland, October A firm’s structure might be influenced by some or all of these types of departmentation. This often leads to functional groupings because people are comfortable with their “own kind” as in technical people prefer technical people, sales types like sales types, etc. On having this app for quite a bit time, Haven’t realised there’s a chat room in it.

What is global marketing? This helps in eliminating the unprofitable products and promoting the profitable ones thereby increasing organisational efficiency. VA Graicunas in came out with a formula to define relationships in terms of direct single relationships, direct group relationships and cross-relationships.