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DEPARTMENTATION

BIBLOGRAPHY
1. Essentials Of Management-1998;5th Edition
By: Harold Koontz & Heinz Weihrich
Ch.-Basic Departmentation pg-153-154

2. Principles & Practice Of Management-2003;8th Edition

By: T.N.Chabra
Ch.-Departmentation pg-281-282

3. Edmund R.Gray & Larry R.Smeltzer


Ch.-Organizing pg-354-356

4. Principles &Practice Of Mamagement


Ch.- Design Of Organisational Structure-6th Edition
By:L.M.Prasad; pg-318-325
INTRODUCTION
Why We Need Departmentation?
 Basic need for departmentation arises
because for:

1. Specialization of work.
2. Simplification of managerial task.
3. Limitation on the number of
subordinates that can be directly
controlled by the superiors.
IMPORTANCE
1. Increase of efficiency.
2. Fixation of accountability.
3. Advantages of specialization.
4. Development of manager.
5. Facility in appraisal.
6. Better control.
METHODS OF
DEPARTMENTATION
1. Departmentation by numbers :
 An important method in organization of
tribes & armies.
 Success depends upon the manpower.
 This method is not used in industrial
organization these days.
METHODS OF
DEPARTMENTATION
2. Departmentation by time :
 One of the oldest form of
departmentation generally used at lower
levels of organization.
 For example : Hospitals ,Fire-brigade
depts.
Advantages logical & time method Disadvantages
•Is logical reflection of functions •De-emphasis of overall company
•Maintains power and prestige of major objectives
functions •Reduces coordination between functions
•Simplifies training •Responsibility for profits is at the top only
•Furnishes means of tight control at top •Limits development of general managers
A CORPORATE EXAMPLE
Organization Structure At Unilever – An
Anglo-Dutch Multinational Corporation.

The executive officers are grouped into:


 Functional areas .
 Product groups .
 Geographic regions.
Thank You