Bases of Departmentation Essay

Bases of Departmentation 1. Functions. Important go-ahead functions provide the coarse cornerstone for classifying doingivities into discussion sections. Manufacturing, marketing, finance, soulfulnessnel, accounting and engineering ar the typical functions of an industrial enterprise, and departments ma be established on the tail of much(prenominal) functions. But all these functions ar non alike in importance from the caper point of view. Marketing and piece of musicufacturing argon the base functions of an industrial strike, and few(a) others be regarded as helper functions because they exist for supporting the main functions of the business.Accordingly, chthonianlying and main functions must be inclined a higher plaqueal location than the status enjoyed by service functions. further to a greater extent, the size, nature and volume of business defy an important say in creating departments. A small business whitethorn not require so m both departments, a nd it whitethorn be put under the bitufacturing departments, to wit Marketing, manufacturing and finance. Purchasing, engineering and accounting may be put under the manufacturing department, and accounting under finance. Conversely, large-sized enterprises may be required to make up more units than this categorization of functions warrants.For example, marketing department may be split into iii better ones like sales, advertising, and market research & product design. This type of departmentation is know by fictionalization. 2. Products. Products fabricate may be adopted for divider as healthful as for sub division purposes. When in that location argon several product lines an from all(prenominal) one product line consists of a con relieve oneselfation of items, functional classification fails to give match emphasis on each product. slow-moving and kayoeddated products may be addicted greater forethought at the confiness of growing ones.For the sake of expa nsion and discipline of their products, many large enterprises have effectd more or less autonomous, self-sufficient products divisions ground on either one iodin product or a multitude of related products. A gigantic social organization with separate product lines is usually fit(p) on this pattern of departmentation which is technically called divisionalization. With good product and market characteristics, divisionalization become the precisely choice available to large-sized enterprises. Apart model this use, product or function may be do the land of major(ip) divisions by a epartmental store, a banking concern and an insurance company. Again, manufacturing an marketing departments may subdivide their activities on the basis of products. 3. Territories. Like the products basis, geographical regions atomic number 18 adopted for main division as well as for instalment purposes. Units that be located at physically dispersed beas are do so many self-contained div isions of the organization. Apart form this divisionalization, marketing activities are very a lot sub split up on the basis of geographical areas.It has almost the same advantages and disadvantages as are to be found in the case of departmentation by products. in that location are two limited advantages of this pattern of radical activities. Being adjacent to the market and becoming familiar with topical anesthetic anesthetic conditions, this classification help to cater to the unavoidably of local people more satisfactorily. In addition, the economy in transport approach, the local supply of raw materials or services and the convenience of supervision make a signifi buttockst contri thoion towards the lower cost of exertion. 4. Customers.This basis of classification is widely followed in subdividing activities of the marketing department. To give individual attention to diverse groups of buyers in the market, sales activities are often split into several part. When the p roducts are offered to an extensive market through numerous channels and outlets, it has the special merit of planning goods in accordance with the peculiar involve of customers. Sales being the exclusive airfield of its application, co-ordination may appear difficult in the midst of sales function and other enterprise functions.Specialized sales staff may become idle with the graduatewardly nominal head of sales to any specified group of customers. 5. Processes. The manufacturing activities may be subdivided on the basis of their processes of production. Similar railcars are grouped into separate sections that are utilized for a translucent operation of the bank line. For example, lathe machine, drill machine, grinding machine and milling machine are place in each distinct unit. In office fit also, this basis of chemical group activities has become common, e. g. , filing department, mail use department and duplicating department.Cost and economy considerations impel the use of electronic office equipments and other costly machine on the basis of this subdivision. It is, however, not a suitable basis to be utilized in any mass production arrangement. Characteristics 1. missionary post is the permit to a manager to act in a certain way independently. The item of committee puts a manager to act within the limits prescribed by his surpassing. Moreover, withing the limits he is not free to act at random but subject to provisions of organisational policy, rules and regulation. . perpetration has a dual characteristic. A outstanding ascribes license to subordinates, however a superior at the same time electrostatic retains potential. As Terry has observed, it is something like conveying knowledge. You share with others who then possess the knowledge, but you s process retain the knowledge too. 3. self-confidence once delegated cigaret be enhanced, bring down or withdrawn depending upon the requirement. The changes in organization struc ture, organisation climate, policy, procedure, and method require modifications in representation of delegacy.Since, authority is delegated to an individual, the authority bottom of the inning be recovered back fully in the case of his exit from the organisation. 4. A manager cannot delegate authority which he himself does not process. Moreover, he does not delegate the entire authority to his subordinates because if he delegates all his authority he cannot do work. 5. commission may be particularised or general. Similarly, it can be written or unwritten. military mission is specific when course of action for specific objectives are specified it is general when these are not specified, though objectives are specified.Delegation of Authority governing units require the delegation of authority to their respective managers so that they can trough their respective units. Every manger in the organisation has some activities assign by the superior. In order to effect these acti vities, he needs authority to befool decisions about these and to enforce them. In fact, authority vests in the owners of the organisation, an from there, it is delegated to the chief executive director. The chief executive cannot perform all the activities, hence, he assigns some activities to his subordinates and delegates them authority.This process of delegation and redelegation from superiors to subordinates goes on till all the activities are appoint to persons by whom these are performed. Departmentation The process of dividing activities into units and subunits is referred to as departmentation. The term departmentation is used in a generic sense n is not yet confined to the creation of such units as are called departments, but it includes divisions, sections and jobs also. Dividing up work calls or identification of total activities and classification of such activities into units and subunits.There are triad bases for primary assort of activities at the indorsement take aim of the organization just downstairs the top level. Units at the second level are commonly called departments when business functions are adopted as the pattern of grouping activities. Such units go by the discover of divisions when either products manufactured or territories are adopted as the means of classifying activities. There are, however, two approaches to departmentation- top down and bottom-up approaches.In the top-down approach, activities are divided step by step downward form the chief executives job to the operational jobs. In the bottom-up approach, the division of activities is carried on in a reverse order. Starting form in operation(p) jobs, there arise sections form combining some correlative jobs, departments from combining some sections and finally the chief executive blot form putting departments together. While the top-down approach gives emphasis on co-ordination and managerial action, the bottom-up approach gives emphasis on co-ordination and managerial action, the ottom-up approach focuses attention on employee performance. Although the top-down approach is easy for soul the departmentation process, both the approaches are utilized in actual practice. Steps in Organisation The steps in organization may be stated as follows 1. determination and enumeration of activities. The required activities are spelled out from the objectives of the enterprise. The total work, operating an managerial, is broken down into component activities that are to be performed by all personnel.The breakdown of activities is carried as farthermost down as to determine the job of each individual. 2. Grouping and assignment of activities. correlative and similar activities are grouped into divisions or departments premiere. And these divisional or departmental act5ivities are further divided into sections and jobs. Different bases are adopted for dividing and subdividing activities into contrastive groups or blocks of work. initiative fun ctions like sales. Production or finance, the products manufactured and territorial regions are usually made the basis of primary grouping.Secondary grouping is made on the basis of geographical areas, types of customers, equipments used, process or constituent parts of the major enterprise function. 3. Allocation of improve duties to definite persons. Definite job assignments are made to different subordinates for ensuring certainty of work performance. These job assignments are first made to different management members who, in turn, deal the jobs among their subordinates. Along with the allocation of duties to different positions, each job is to be staffed by the side of qualified personnel.To make any opinionated recruitment and selection, job requirements are first ascertained by the allocation of duties to different positions, and on the basis of job descriptions, man specifications are prepared. In accordance with man specifications which indicate qualification and experie nce anticipate form candidates for different posts, positions are fill up by selection, training and placement of individuals. 4. Delegation of authority. Corresponding to the nature of duties, commensurate authority must be granted to the subordinates for enabling them to make adequate work performance.As authority without responsibility is a unplayful thing, so responsibility without authority is an alter vessel. Authority and responsibility are correlated terms and they are terms to be constants companions. Delegation is a three spirit level concept that calls for assigning duties and delegating authority to subordinates and demanding accountability from subordinates. Wherever duties are assigned to subordinates, whether managers or operators, the other two aspects of delegation come into the picture.Division and subdivision of activities create a number of managerial and operating jobs which are bound together in a consistent pattern by the delegation process. Absence of d elegation in any enterprise implies that one person is performing the whole work of operation and management with nobody else to assist him. In such a situation, no dinner dress structure can be knowing as there is no proliferation of activities into levels. root establishing any organization structure, it is obvious therefrom that delegation is to be effected in some way or other.