ByPavan Mandowara

Organization

DepartmentationGrouping of activities into a department or

divisions or homogenous units is called as departmentation.

It is beneficial for specialization of work as well as for growth and expansion.

Departmentation byFunctionsProductsTerritoryCustomerProcess or EquipmentTime and Numbers Composite Departmentation

Departmentation by FunctionsChairmanCEOMDMarketingFinanceHRProduction

Quality ControlMaintenance

Export

Departmentation by ProductsTata Sons

Steel MotorsTeaTCSTata StarbucksWestside

Departmentation by TerritorialAsia HeadIndia HeadNorthern Region VPEastern Region VPWestern Region VPSouthern Region VPCentral Region VPState HeadBranch Head

Departmentation by CustomerWhole sale marketRetail marketB to B MarketMen SectionWomen SectionKids sectionSports SectionFurniture Section

Process DepartmentationSpinningWeavingProcessing & DyingPackaging

Departmentation by Time & NumberMorning ShiftAfternoon ShiftEvening ShiftNight Shift

Combined DepartmentAll the functions and areas and scopes are

handled from one department.

Delegation & Decentralization

Types of OrganizationsLine Organizations

Authority moves from top to bottom where top has most power in decisions and as it come down the power decreases

Functional OrganizationsMarketing, Finance, HR, IT, Production,

ExportsLine & Staff Organizations

Staff officers are engaged to help the line officers

Project OrganizationMatrix Organization

Combination of Project & Functional Organization

Formal & Informal OrganizationFormal Organizations

Org. Hierarchy are followedMore emphasis on process, rules and

regulationsBoss is a BossCreated Deliberately by ManagementLarge sizeFormal channel of communication

Informal OrganizationsUnique and creative way of workingFriendship and common interest Flexible working conditionsMore friendly atmosphereSmall sizeBoss is like a ColleagueSocial and Psychological benefits to

employeesIn Formal channel of communication