Departmentation 1
- 1. ORGANIZATIONAL BEHAVIORPRESENTATION BYYOGENDRA SHARMASIDDHART GOPESOUVIK SINHASOUDIPABHAY KUMAR VIVEK RAJ
- 2. PRESENTATION TOPICSelect a company and identify the departmentation pattern (or patterns) it uses. Draw an organization chart for the firm. Why do you think the company selected the type of departmentation it did? Would you recommend it? DepartmentationDepartmentation by enterprise function means grouping of activities according to the functions of an enterprise, such as production , selling and financing
- 3. Departmentation is a means of dividing a large organization into smaller , flexible unitsAdvantages Increase the efficiency of the organization as various activities are grouped togetherFurnishes means of tight control at the top.Simplifies training.It provides for fixation of standards of performance and ensures effective controlCreates opportunities for the departmental heads to take initiative
- 4. DisadvantagesReduces coordination between functions as the organization is divided into various partsResponsibilities for profits is at top only.Slow adaptation to change in environment.It increases the levels of management which is expensive and thus increases the gap between the top management and the workersDepartmentation creates difficulties of communication among the various departments of the organization
- 5. Factors affecting DepartmentationTo get the benefits of specializationControl should be effective so as to ensure clear authority and responsibilityCoordination should be taken into considerationKey activities need to be separatedExpenses involved in creating separate departments
- 6. Basis Of DepartmentationFunctional DepartmentationProduct wise DepartmentationTerritorial or Geographical DepartmentationProcess wise DepartmentationCustomer wise DepartmentationTime wise Departmentation
- 7. Functional DepartmentationGrouping of common or homogeneous activities to form an organization unit is known as functional departmentation
- 8. Further functions in an organization are divided in two categories basic and secondary functions
- 9. Basic functions are those which are necessary for the smooth running of the business like production ,marketing , finance
- 10. When span of management is too large then further departments are created within the main departments they take care of secondary functions
- 11. In this case like the basic function is marketing but it may further be divided into advertisement , sales , market researchProduct wise DepartmentationProduct departmentation involves the grouping together of all the activities necessary to manufacture a product or product line Eg In an automobile organization the departmentation could be car division , truck division , bus division
- 12. DEPARTMENTATION BY TERRITORY OR GEOGRAPHYDepartmentation 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 , transportationEg India could be divided into north , south , east , west , central zones Further North zone can be divided into Chandigarh , new Delhi , Jalandhar , Ajmer divisions
- 13. Process DepartmentationIn this processes involved in production or various type of equipments used are taken as basis of departmentationThe basic aim to do process departmentation is to achieve economic benefitEg process departmentation in case of textile organization can be by dividing the production into spinning , dyeing , weaving , finishing departments
- 14. Customer wise DepartmentationGrouping of activities around marketing channels involves making an organization structure reflect the ways an organization reaches the ultimate customerAdvantage of this type is that it focuses on customer who are the ultimate suppliers of money to the organizationEg in pharmaceutical companies different customers could be doctors , hospitals , government , retail storesFurther it could be wholesale , retail , export
- 15. Time wise DepartmentationIn some organizations where work is performed through day and night , the work is divided into shifts
- 16. Thus when an organization may operates on three shifts, three different departments may exist Wal-Mart Stores.TypePublicTradedasNYSE: WMTDow Jones Industrial Average Component Industry Retailing Founded1962Founder(s)Sam Walton Headquarters Bentonville, Arkansas, United States36°21′51″N 094°12′59″W Number of locations8,970 (2011)Area servedWorldwideKey people Mike Duke (CEO)H. Lee Scott (Chairman of the Executive Committee of the Board)S. Robson Walton (Chairman)
- 17. DEPARTMENTATION OF WAL-MART AUTO & TYRES
- 18. APPAREL, SHOES & ACCESSORIESAccessoriesBabyBagsBoysGirlsJuniorsMenShoesWomenAtv, Motorcycle, RVAuto ElectronicsCar Care & MaintenanceExterior Accessories Interior AccessoriesTiresTires AccessoriesTools & EquipmentWal-mart Tyre & Lube Express
- 19. Beauty ElectronicsBath & bodyFragrancesHair CareMakeupMassage & SpaMen’s GroomingShavingAutoCameras & CamcordersCell phones & ServicesComputersGPS NavigationHome Audio & TheatreI pad & EreadersIPod & MP3 playersTV & Videogames
- 20. MOVIES MUSICBlue-ray discsMovie centreMovies (DVD)New ReleasesPreordersTV ShowsVideo on demand by VUDU CD StoreMP3 DownloadsMusical InstrumentsNew ReleasesPreordersTop 100 CDs
- 21. OFFICE PHARMACYBreak room SuppliesBusiness Office Furniture’sHome Office Furniture'sJanitorial SuppliesOffice TechnologySchool supplies$4 PrescriptionsCreate An AccountClinicsFree Home DeliveryMedicareMobile PharmacyRefill PrescriptionsSpecialty PharmacyTransfer Prescriptions
- 22. Yes, we recommend departmentation for the following reasons :-It increases the operating efficiency of the employees.
- 23. It makes the executive alert & responsible in his duties.
- 24. It increases the prestige & skill of the departmental heads.
- 25. It help in better co-ordination among the managerial personnel.