Departmentation by region or area, departmentation by customers, departmentation by process, departmentation by time, departmentation by numbers, departmentation by marketing channels and model questions. Effects of job specialization and departmentalization on. It is a function of providing every thing useful to the business organization. Departmentation is part of the organizational process. Nature of organizing, formal and informal organization 1. Departmentation takes place at all levels primary departmentation top level intermediate departmentation middle level ultimate or secondary departmentation lower level koontz definition a department is a distinct area, division or branch of an enterprise over which a manager has authority for the performance. Steps in planning levels of planning the planning process mbo 3 hrs. Learning objectives explain the concept of organizing describe the importance of organizing explain the element of organizing process of organizing explain the meaning, advantages and disadvantages of formal and informal organization distinguish between formal and informal organizationjune 27, 2012 nature. The nature of activities performed by different organisations is different. Nature and importance of planning types of plans 3 hrs. Departmentalisation advantages functional structure.
Principles of management study material include principles of management notes, principles of management book, courses, case study, syllabus, question paper, mcq, questions and answers and available in principles of management pdf form. So, in this way, the entire organization is divided into parts, i. The appropriate division of organisational activities into departments for the purposes of. Nature of organising function characteristics of organization, importance of organization.
Apparel or garment industry is the final stage of textile manufacturing where cloth is cut into different parts and sews to make various types of apparel. Departmentalization or simply departmentation refers to the grouping of operating tasks into jobs, the combining of jobs into effective work groups and the combining. But the most commonly adopted bases of departmentation are there could be further extension of this basis of departmentation. Nature of organizing legal froms of organization an organization is a group of individuals who work together toward a common goal. Formal and informal organization, organizational divisionthe department, the structure and process of organizing, the span of management. Its concept, structure, benefits and other details. Mechanisticorganic organizationsan axiomatic theory. In the previous article we have described in detail about the elements of organization structure. Types of organization types of departmentalization centralization and decentralization organization is a system of cooperative activities of two or more persons. This article throws light upon the six different basis of departmentation in an organisation. Centralization is the procedure by which the exercises of an association. A work group brought together for performing certain functions of similar nature. Concepts of management and organization nature, importance and functions of management, systems approach to management.
Departmentation by territorygeographic departmentation 4. It is also important to bear in mind that any change in an organisation may have effects extending beyond the. Types of departmentation 11 ways in which departmentation may be carried out. Departmentation by customers departmentation by customers places greater emphasis on the customers and distinguishes one type from the other. The goals must be realistic and achievable that ensure efficient utilization of the resources and satisfy the enterprise objectives. Departmentation types in management framework iibm lms. The nature and purpose of organizing basic departmentation. It helps the utilisation of manpower and other natural resources of the organisation.
Organizations size and span of control practical management. Major principles or guides for the managerial functions of. The ultimate purpose of management is to achieve certain goals over a period of time. Concepts and f0rmats when two or more people work together to achieve a group result, it is an organization.
Departmentalization or departmentation is a process wherein jobsteams are combined together into functional units called as departments on the basis of their area of specialization, to achieve the goals of the organisation. Departmentation by time, enterprise function, geography, product. It includes departmentation, delegation of authority, fixing of responsibility and establishment of relationship. For example, the division could be industrial buyers, wholesellers, government, and public undertakings, agriculturists, etc. Departmentalization is a process used to classify the functions, activities. Download principles of management pdf notes, books, syllabus for bba, b. Functional departmentation is the process of grouping activities by functions performed. A department is an organization unit that is headed by a manager who is responsible for its activities. Departmentalization is the process of breaking down an enterprise into various departments. The premise of departmentation, departmentaion is by numbers, time of duty, function, procedure or equipment, location or territory, product, customer, business sector or distribution channel, service, clients.
Similar activities of a business are grouped into major departments. Nature and characteristics of management management guru. Lunenburg sam houston state university abstract mechanistic and organic organizations are opposite ends of a continuum of organizational structure possibilities. It also poses a very different challenge for the organizations leaders, while small organizations are build for. In the words of allen, departmentation is a means of dividing a large and monolithic functional organisation into smaller, flexible, administrative units. Departmentation can provide a necessary degree of specialisation of executive activity for efficient performance. The first step in designing an organization structure is to divide whole work into a number of jobs to ensure that no important activity is left out. Departments are the various parts or divisions of an enterprise.
Management science pdf notes ms notes pdf smartzworld. Nature of organizing, formal and informal organization. Departmentalization refers to the formal structure of the organization, composed of various departments and managerial positions and their relationships with each other. After the objectives of an organization are established, the functions that must be performed are determined. As the organisation grows in size, the work is divided into units and subunits. Here you can download the free lecture notes of management science pdf notes ms notes pdf materials with multiple file links to download. Functional departmentaion it is grouping of activities on the basis of similarities of functions. Organisation as a system, steps in the organisation process, organisation. In simple words, departmentation is the process of classifying and grouping all the activities of an enterprise into different units and subunits. Basis of departmentation by simple numbers, time, function, product, process, geographical region, marketing channel and a few others with examples the main objective of the departmentation is to achieve the organized objective, so various activities are grouped or divided on the following bases. Chain of command the path that a directive or answer or request should take through each level of an organization. It is the process by which activities are grouped and each group is known as department. Departmentalization, on the other hand, is the grouping of jobs. The various principles of authority delegation and of departmentation are fundamental truths about the process of organizing.
In other words, there can be no organization without division of. In this article i will discuss various departments in apparel manufacturing industry. Timms mn1107, 996d107, 2790107 2011 undergraduate study in economics, management, finance and the social sciences this is an extract from a subject guide for an undergraduate course offered as part of the. Departmentation means division of work into smaller units and their regrouping into bigger units departments on the basis of similarity of features. Departmentation and division of labour are same things. From the study of the various definitions given by different management experts we get the following information about the characteristics or nature of organization, 1 division of work. Management science notes pdf ms pdf notes entrepreneurship and organization, departmentation and decentralisation, types of organization structures line organization, line and staff organization, functional organization. Departmentalization means grouping activities and people into departments, making it possible to expand organizations, at least in theory, to an indefinite degree. Definition of departmentation, need for departmentation, bases of departmentation function, product, territory, customers, process of equipment choosing a basis of. Product managers are accountable for results of their product departments. The first step in designing an organization structure is to divide whole work into a number. The main challenge in creating an organisation structure. Organizations size and span of control organizations size is determined by number of its employees, the largeness of its operation, and its market reach and share.
Mechanisticorganic organizations an axiomatic theory. Authority based on bureaucracy or professional norms fred c. Departmentation and decentralization, types and evaluation of mechanistic and organic structures of organization and suitability. Departments are created and activities of similar nature are grouped in one unit. Learning objectives explain the concept of organizing describe the importance of organizing explain the element of organizing process of organizing explain the meaning, advantages and disadvantages of formal and informal organization distinguish between formal and informal organizationjune 27, 2012 nature of. To survive and grow two or more people working together must organise themselves to achieve common objectives. According to the principle of optimum departmentation, departments in an organization must be so created and maintainedas to facilitate the best attainment of the common objectives of the enterprise. Every manufacturing unit, except a small one has to perform certain basic functions such as production, marketing, finance and personnel. Departmentation or departmentalisation is the process of grouping the activities of an. Significance and relevance to modern civilized society. Departmentation organizational structure marketing scribd. Different departments in garment industry clothing industry. Abstract job specialization is the degree to which the overall task of the organization is broken down into smaller component parts.
Organization is the process of dividing up of the activities. Departmentation is the foundation of organisation structure, that is, organisation structure depends upon departmentation. The procedure of grouping of activities into units with the end goal of organization is called departmentation. They deal with phases of the two primary aspects of organizing. Unit iii the nature of organizing and entrepreneuring organizational structure. Departmentation linestaff authority and decentralization effective organizing and organizational culture global organizing. By functions, process, products, territory, numbers, committees and a few others. In this type of organization, authority flows from top to bottom.
Organizing in management basic elements of organization. All the process of garment manufacturing are done in different sections in garment industry. Patterns of departmentation organizations are divided into smaller units a process called departmentation or departmentalization 1. Helps utilization of manpower and other natural resources we learn a continuous learning forum. The purpose and nature of planning the purpose and nature of planning may be summarized by reference to the following principles. The nature and purpose of planning objectives strategies, policies and planning premises decision making global planning. In the words of allen, departmentation is a means of dividing a large and monolithic functional organisation into. Each of these are grouped into separate departments such as production department, marketing department, finance department and personnel department. Read this article to learn about the meaning, process, principle and importance of organising. Functional departmentalization can be used in all types of organizations. Nature of organising organisation levels and span of control in management organisational design and structure departmentation, line and staff. How jobs are grouped together is called departmentalization.
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