Commerce Optional (UPSC-IAS)

DEPARTMENTATION

Departmentation is process of grouping activities and people onto department make it possible to expend organization. After reviewing the plan, usually the first step in the organization process is departmentalization. Once job have been classified through work specialization, they are grouped so those common tasks can be coordinated. Departmentalization is the biases on which work or individuals are grouped into manageable units. There are five traditional methods for grouping work activities. Thus workflow analysis can be used tighten the connection between employees’ work
and customers needs. Also it can help to make major performance breakthroughs throughout business process reengineering (BPR).A functional rethinking and radical redesign of business process to achieve dramatic improvements in costs, quality, service, and speed.BPR use workflow analysis to identify jobs that can be eliminated or recombined to improve company.

TYPE OF DEPARTMENTATION:

1-DEPARTMENTATION BY NUMBERS:
Dpartmentation by number is telling off persons who are to perform the same duties and putting them under the superior of a manager the essential fact is not what these people do, where they work? Or what they work with, it is that the success of the understanding depends only on the number of persons include in it. This method is rapidly applying in army.
DISADVANTAGES OR DECLINES REASONS;
There are many reason of decline of departmentation by numbers.
1-It has declined due to advance technology and demand of specialized and different skills.
2-A second reason is groups composed of specialized personnel are more efficient then those based on number.
3-Departmentation by number is useful only at the lowest level of the organization.
4-Departation by number fails to produce good results
2-DEPARTMENTATION BY TIME
It is grouping activities on the basis of time. It is oldest form of departmentation and it is generally used in low level of departmentation. It is particularly applied in hospitals and steel manufacturing enterprise where continue process of service and manufacturing is used.
ADVANTAGES
1- It is process of working and services throughout 24 hours.
2- It is continuing service process.
3- Expensive machinery is used in shifts.
4- Students can work evening or at night.
DISADVANTAGES
1- There is lacking supervision at night.
2- Exhaustion factor.

3- DEPARTMENTATION BY FUNCTION
It is grouping activities on the basis on function of an enterprise. The basic enterprise functions are production, selling, and financing functional departmentation is bases for organizing activities and in organizational structure. It organizes by function to be performed. The function reflects the nature of the business. The advantage of this type of grouping is obtaining efficiencies from consoliding similar specialties and people with common skills, knowledge and orientations together in common units.

ADVANTAGES
1- It is logical reflection of function.
2- Maintains power of major functions.
3- Simplifies training.
DISADVANTAGES
1- De-emphasis of overall company objectives.
2- Reduces coordination between function.
3- Slow adoption to change in environment.
4- DEPARTMENTATION BY GEOGRAPHY
Departmentation by geography is followed where geographic marked appear to offer advantages. Geographic department most often use in sales and production, it is not use in finance. Departmentalization by geographical regions groups jobs on the basis of territory or geography. For example merek, a major pharmaceutical company, have its domestic sales departmentalized by regions such as Northeast, Southeast, & Northwest

ORGANIZING CHART

President
Manager southern region Manager central region Manager north region
ADVANTAGES
1- It emphasis on local markets and problems.
2- Improves coordination in a region.
3- Better face to face communication.
DISADVANTAGES
1- Increases problem of top management control.
2- Requires more persons with general manager abilities.

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