It makes the management control work more difficult. Departmentation is part of the organizational process. It also provides a basis on which the top managers can coordinate and control the activities of the. Matrix departmentalization attempts to combine functional and task force project departmentalization designs to improve the synchronization of multiple components for a single activity i. The answer is motivation in management, the process through which managers encourage employees to be productive and effective. In the words of allen, departmentation is a means of dividing a large and monolithic functional organisation into. For example, a company may deal with eight or nine product lines, e. 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. It also helps to divide work into different units on the basis of nature, and responsibility is entrusted to departmental managers.
Organization types another significant difference between functional and product departments is the type of organizations that typically use them. Jan, 2015 departmentalization facilitates top manager to direct and supervise the work performed by subordinate managers. Apr 29, 2019 management can group the jobs into areas by function, location, product or customers. In most companies, unless they are giant corporations, this is the form of the organisation.
Coordination shall become difficult and the problem of maintaining top management control shall also acute. Types of departmentation free download as word doc. Management principles types of plans tutorialspoint. Departmentalization is defined as a process that groups activities into different departments. On what basis should we carve up the members of the organization here are six common bases for departmentation. Under each of these five managers, there will be subordinate managers and under them, the.
Three such most commonly used plans are hierarchical, frequency of use repetitiveness and contingency plans. Types of organization types of departmentalization centralization and decentralization organization is a system of cooperative activities of two or more persons. Departmentation is defined as the establishment of a distinct area, unit or subsystem of an organization over which a manager has authority for performance of specified activities and results. All these factors help management in choosing an appropriate basis of departmentation which may be one of these or a mixed type of departmentation. It can simplify the tasks of management within a workable span. Pdf principles of management by k sundar book free download. Management is the process of planning, organizing, leading and. The department heads consider themselves to be autonomous sections of the organisation. Organizational structure an organization is a social unit of individuals that is designed and managed to achieve collective goals.
Departmentation provides motivation by developing feeling of autonomy to the extent possible. This video has also a full description of functional. Departmentalisation advantages functional structure ppm. Nature of organising organisation levels and span of control in management organisational design and structure departmentation, line and staff concepts 3 hrs. This article throws light upon the six different basis of departmentation in an organisation.
Meaning and definition of departmentation departmentation is the process which is used to group activities into units for purpose of administration at all levels. By far, most of the organisations follow a hybrid basis of departmentation, for different organisational levels and for different organisational activities. Functional departmentalization grouping activities by functions performed. The manager in charge of a department can take independent decisions within the overall framework of. Departmentation means division of work into smaller units and their regrouping into bigger units. Smaller organizations, assemblyline producers and wellestablished professional organizations such as colleges and hospitals usually have functional departments, partly due to tradition. Steps in planning levels of planning the planning process mbo 3 hrs. Departmentalisation advantages functional structure. Management can group the jobs into areas by function, location, product or customers. For example, departments in a functional departmentalization include marketing, production, accounting, sales. Grouping based on the type of clients their work is ultimately sold to. Download principles of management by k sundar this book covers the entire gamut of the subject principles of management business management. Departmentation by customers some advantages of this type of structure are.
Normally departments are created in the organisation with certain degree of autonomy and freedom. In simple words, the organizational process of determining how activities are to be grouped is called departmentation. For example, departments in a functional departmentalization include marketing, production, accounting, sales and purchasing. Management science pdf notes ms notes pdf smartzworld. The resultant process of departmentation includes decisions regarding segregating organizational. Types, methods and basis of departmentation types of departmentation by functions, product, regions, customers, process, time, numbers and marketing channels. An example is the production department, hr department, accounts department. Jul 15, 20 departmentation management principles 1. Hello learners, this video consists of the full description of departmentation or departmentalization. In the words of allen, departmentation is a means of dividing a large and monolithic functional organisation into smaller, flexible, administrative units. An example of a business serving nonprofit markets, which uses the market form of. Under this method similar type of duties is performed by small. Aug 08, 2018 hello learners, this video consists of the full description of departmentation or departmentalization.
Jan 11, 2016 ppm principles and practices of management. These departments are created so that tasks can be performed by specialization within the organization. Management is a transformation process consisting of planning, organizing, staffing, directing and controlling. Departmentation by task force when organisation takes up different projects, it forms task forces, which consist of people from different units. Functional departmentalization most companies practice functional departmentalization. Departmentation can provide a necessary degree of specialisation of executive activity for efficient performance. Welingkars distance learning division chapter09 departmentation we learn a continuous learning forum 2. Functionwise departmentation types the functional structure is the most common in functionwise departmentation types. When a need exists to provide better service to different types of markets, departmentalization by market may be the appropriate form.
So, in this way, the entire organization is divided into parts, i. Welingkars distance learning division departmentation by numbers similar type of duties performed by small groups and each group is controlled by a supervisor or an executive. Departmentation is the foundation of organisation structure, that is, organisation structure depends upon. Management must be very careful in choosing the basis of departmentation because one a pattern is chosen it is very difficult and costly to switch over to another pattern. Departmentalization also refers to an organizations formal structure that includes. This type of departmentation requires more persons with general managerial abilities needed in the future at higher levels. Here you can download the free lecture notes of management science pdf notes ms notes pdf materials with multiple file links to download. Introductiondepartmentation ma help management assignment. The following points highlight the importance of departmentation. Departmentation types in management framework iibm lms. Concepts and f0rmats when two or more people work together to achieve a group result, it is an organization. Plans commit the various resources in an organization to specific outcomes for the fulfillment of future goals. Management science notes pdf ms pdf notes entrepreneurship and organization, departmentation and decentralisation, types of organization structures line organization, line and staff organization.
Pdf principles of management by k sundar book free. Introduction to the types of departmentalization in a company there are basically five types of departmentalization in organizations. The principles of span of management span of control or span of supervision is used under this type. A streamlined course for students and business people. With this introduction, we shall now see the meaning of departmentation, bases of departmentation and their relative merits and demerits. In this type of organization, authority flows from top to bottom. Introduction departmentation is a part of the organizationprocess. A work group brought together for performing certain functions of similar nature. Think of what you might experience in a retail setting when a. Centralization is the procedure by which the exercises of an association. Functional departmentalization creates groups of jobs by function for the organization. Organizing an organization through departmentalization is common. As such organizations are open systems that are greatl. Methods of departmentation 6 methods your article library.
The following factors should be kept in view while selecting a suitable basis of departmentation. 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. Welingkars distance learning division introduction departmentation is a part of the organization process. Such division of work, thus, is helpful for expansion of business. In this lesson, youll learn what departmentalization is, some types of. Meaning of departmentation departmentation is the foundation of organisation structure.
Initially the aerospace industry and later dow coming, general electric, shell oil, and other industry giants adopted this concept of a project management structure. Productwise departmentation types productwise departmentation types is resorted to where specialization is required in respect of specific products of the company in departmentation types. Organization is the process of dividing up of the activities. The procedure of grouping of activities into units with the end goal of organization is called departmentation. Principles of management by k sundar pdf free download. Types of departmentation free online courses on organisation. Departmentation means division of work into smaller units and their regrouping into bigger units departments on the basis of similarity of features. You will find it in both private and public organizations. Squads, battalions, companies, brigades and regiments in army we learn a continuous learning forum. Departmentalization refers to the formal structure of the organization, composed of various departments and managerial positions and their relationships with each other. Management communication typesprocess barriers making communication effective. Division of work into units and subunits creates departments.
There are certain basic methods of dividing the duties and responsibilities within an organisational structure. Welingkars distance learning division basis pattern types of departmentation departmentation by function. 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 is a process resulting out of choice to group tasks according to some criterion. As an organization grows, its departments grow and more subunits are created, which in turn add more levels of management. The principles and techniques of management are universally applicable to all group activities performed at any level of organization. Targeted at undergraduate students of commerce and management, the book, in 31 chapters, is pedagogyrich, comprehensive and studentfriendly. Many different types of plans are adopted by management to monitor and control organizational activities.
The manager in charge of a department can take independent decisions within the overall framework of the organisation. Matrix departmentalization was introduced in the early 1960s in response to the growing complexity and size of technically oriented enterprises, which needed more flexibility. Departmentation by territorygeographic departmentation 4. The departmental heads will report to the chief executive. Special type of organization owned by users or customers, to.