Departmentation

Course: MBASubject: Introduction to Management

Unit: II

Patterns/types of departmentalization

i. Functional ii. Productiii. Processiv. Territory v. Customer vi. Time vii. Matrix

i. Functional departmentation Positions are grouped according to

their main functional (or specialized) area.

MD

Prod. HR Fin Marketing

Advertising sales MR

ii. Product divisions

Product divisions are divisions created to concentrate on a single product or service

CEO

Car division Truck division

marketing Fin prod

Bus division

iii.Process

Activities are subdivided on the basis of their processes of production

Similar machines are grouped into separate sections

iv. Territory

Geographic divisions are divisions designed to serve different geographic areas.

HQ (Bombay)

East Zone (Kolkata)

Central Zone(Kanpur)

Ajmer Division

Branch

Branch

Chandigarh division

Jalandhar division

North Zone (Delhi)

v. Customer

Customer divisions are divisions set up to service particular types of clients or customers.

Ex. Pharma company supplies their products to hospitals, govt., retail stores, other company etc

HQ (Bombay)

GovtRetail store

hospitals

Other company

vi. Time

departments are separated based on the division of their working time or job shifts.

vii. Matrix structure Matrix management is a type of

organizational management in which people with similar skills are pooled for work assignments.

An organization with a matrix structure has a functional and a divisional structure at the same time.

Report to two bosses

For example, all engineers may be in one engineering department and report to an engineering manager, but these same engineers may be assigned to different projects and report to a different engineering manager or a project manager while working on that project. Therefore, each engineer may have to work under several managers to get their job done.

Multiple command-and-control structure in which some employees have dual responsibilities and dual bosses. These employee report to one boss (a project manager, for example) for day to day operations, and to another boss (the departmental head, for example) for functional responsibilities.

This approach is most suited to situations with

fluctuating workloads, such as managing large projects or product development processes.

Matrix structure

1

3

Centralization All the powers of decision making

are concentrated in top management

CEO

Marketing manager

Finance manager

HR manager

Production manager

R & D manager

Decentralization/Delegation Power and authority are delegated to

lower levels. When org is so large, to reduce burden of

top management, operations are geographically isolated

- Advantages:- Faster decision- Development of lower level- Top manager can concentrate on other

issues- Lower level can make good decision as

they are close to the problem

Decentralization

HQ (Bombay)

East Zone (Kolkata)

Central Zone(Kanpur)

Ajmer Division

Branch

Branch

Chandigarh division

Jalandhar division

North Zone (Delhi)

THANK YOU

References

1. https://lh6.ggpht.com/SZZYfx5ZVQfPCBWQ30KjdKDWa1V4kIT_V9aUFG3UD25UW8vjrakbELLwzBKpAxS3glgWhg=s114

2. https://lh4.ggpht.com/FV9OchaMi4jEj7bImrY7FbuyXcJck4pU0l6PsgtY_UzOthVSposa726_JQ1aXj9H9mnpgw=s99

3. https://lh5.ggpht.com/CieF0-uxs5ogBVKH-bp6NLhliLr49S8Rkcleeu3ARd76xG9aKkwj0hZtUrqTrrGi0Gx2=s115