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DEPARTMENTATION
       PRESENTED BY:
       SIMRAN BUTTAR
 Dividing work on the basis of the
  specialization is known as deparmentation.

  Departmentation is a means of dividing a large
  organization into smaller , flexible units.
 According to Koontz and
O’Donnell, “Departmentation is a process of
                  dividing
      the large monolithic functional
   organization into smaller and flexible
           administrative units.”
1.Functional Departmentation
2.Product wise Departmentation
3.Territorial or Geographical Departmentation
4.Process wise Departmentation
5.Customer wise Departmentation
6.Time wise Departmentation
 This is the simplest and most prevalent basis for
  departmentation. Under this all the functions of
  similar nature are divided in different units which
  are called departments.
  EXAMPLE: The functions of manufacturing concern can
  be divided into production department,
  marketing department, financial department and
  personnel department. Again sub departments
  can be established in each department.
 Product departmentation involves the grouping together
                    of all the activities
          necessary to manufacture a product or
                       product line.


       EXAMPLE: In an automobile organization the
         departmentation could be car division, truck
                   division, bus division.
*

     * Departmentation by territory or geography means,
    “Grouping of activities by area or territory is common in
      enterprises operating over wide geographic areas.”
    *Organizations which are involved in banking , insurance
                        , transportation.
*EXAMPLE: India could be divided into north , south , east , west
                         , central zones.
    *Further North Zone can be divided into Chandigarh, New
                        Delhi, Ludhiana.
*In this process involved in production or various types of
 equipment's used are taken as basis of departmentation.
*The basic aim to do process departmentation is to achieve
                     economic benefit.
 *EXAMPLE: Process departmentation in case of textile
organization can be by dividing the production into spinning,
          dyeing, weaving, finishing departments.
*Grouping of activities around marketing channels involves
   making an organization structure reflect the ways an
      organization reaches the ultimate customer.
 *Advantage of this type is that it focuses on customer who
  are the ultimate suppliers of money to the organization.

EXAMPLE: In pharmaceutical companies different customers
  could be doctors , hospitals , government , retail stores.
      *Further it could be wholesale , retail , export.
*In some organizations where work is performed through
     day and night , the work is divided into shifts.
   Thus when an organization may operates on three
     shifts, three different departments may exist.
THANK YOU…

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Basis of departmentation

  • 1. DEPARTMENTATION PRESENTED BY: SIMRAN BUTTAR
  • 2.  Dividing work on the basis of the specialization is known as deparmentation. Departmentation is a means of dividing a large organization into smaller , flexible units.
  • 3.  According to Koontz and O’Donnell, “Departmentation is a process of dividing the large monolithic functional organization into smaller and flexible administrative units.”
  • 4. 1.Functional Departmentation 2.Product wise Departmentation 3.Territorial or Geographical Departmentation 4.Process wise Departmentation 5.Customer wise Departmentation 6.Time wise Departmentation
  • 5.  This is the simplest and most prevalent basis for departmentation. Under this all the functions of similar nature are divided in different units which are called departments. EXAMPLE: The functions of manufacturing concern can be divided into production department, marketing department, financial department and personnel department. Again sub departments can be established in each department.
  • 6.  Product departmentation involves the grouping together of all the activities necessary to manufacture a product or product line. EXAMPLE: In an automobile organization the departmentation could be car division, truck division, bus division.
  • 7. * * Departmentation by territory or geography means, “Grouping of activities by area or territory is common in enterprises operating over wide geographic areas.” *Organizations which are involved in banking , insurance , transportation. *EXAMPLE: India could be divided into north , south , east , west , central zones. *Further North Zone can be divided into Chandigarh, New Delhi, Ludhiana.
  • 8. *In this process involved in production or various types of equipment's used are taken as basis of departmentation. *The basic aim to do process departmentation is to achieve economic benefit. *EXAMPLE: Process departmentation in case of textile organization can be by dividing the production into spinning, dyeing, weaving, finishing departments.
  • 9. *Grouping of activities around marketing channels involves making an organization structure reflect the ways an organization reaches the ultimate customer. *Advantage of this type is that it focuses on customer who are the ultimate suppliers of money to the organization. EXAMPLE: In pharmaceutical companies different customers could be doctors , hospitals , government , retail stores. *Further it could be wholesale , retail , export.
  • 10. *In some organizations where work is performed through day and night , the work is divided into shifts. Thus when an organization may operates on three shifts, three different departments may exist.