DEPARTMENTATION MEANINGS:
The base of structure of an organization depends on the departmentation. Departmentation means dividing the work into smaller parts and then regrouping them into bigger parts called department. This division is done on the base of same features of those parts.
DEFINITION OF DEPARTMENTATION:
According to Pearce and Robinson to group the work, methods and resources into logical parts to perform some organizational task is called Departmentation.
IMPORTANCE OF DEPARTMENTATION:
Some of the points which describes the importance of organization are given below: o Organization Structure:
Dividing the work into units and sub units is known as departments. The people who manage these departments are called managers and
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It becomes easy to work and perform assigned responsibilities for individuals and make changes when organization is divided into departments.
o Co-ordination:
Creation of departments lead to the unity and coordination of the workers o Specialization:
When work is divided into departments it leads to specialization. Because due to this division people in that very department repeatedly perform their assign works and become specialist on those works and activities.
BASIS OF DEPARTMENTATION:
There are six bases of departmentation:
i. Functional Departmentation. ii. Product wise Departmentation. iii. Territorial or Geographical Departmentation. iv. Process wise Departmentation.
v. Customer wise Departmentation. vi. Time wise Departmentation.
i. FUNCTIONAL DEPARTMENTATION:
Functional Departmentation is grouping of tasks according to functions of management. Some of the basic functions of the organization are finance, purchasing, accounting, marketing and production. In each department, again sub-departments can be established.
Figure 1-Departmentation by Function.
Advantages of Functional
Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments. This organization of dividing the whole concern into independent units and departments is called depart mentation.
These three function groups are categorised based on their fundamental and immediate functions required to carry on the primary and ancillary (supportive) business processes. These three groups cannot operate independently, as they are interdependent for execution of their respective tasks or
Structure is the basis through which an organization seeks to create control the direction of an organization. This is completed through clear definitions of the allocation of work, differentiation, and the coordination of having those responsibilities working together towards the efforts of the organization, integration (Bolman & Deal, 1993, pp). Through these methods, the organization is able to devise a division of labor that collaborates to bring about the missions and goals of an organization. The structure that comes about from this can be varied in their rigidness and flexibility it allows, and to an extent this is a great contribution to its success.
Previously, the HR unit for Motors and More only consisted of a HR Director. Some hiring will have to be done in order to have a full HR staff. Due to the size of the company, several of the HR units will have to be combined. The job of the HR director will remain the same. The company will need an Organization Development Manager to facilitate and maintain organizational change. The Employment Staffing and Training Specialist unit can be combined, and will consist of 2 professionals a Recruiting Specialist and a Training Specialist, who report to the ODM. The jobs of Benefits Specialist and Salary Specialist will be filled by taking 2 professionals from the Finance and Accounting department. This will leave that department with a manager, 3 professionals, and 1 hourly person, which are more than enough people to absorb the of the reallocated personnel’s responsibilities.
The structure of an organization is very important because it determines the different roles and how all the departments perform. The organizational structure consists of a group of people that works together to achieve the goals that are implemented.
This structural form allows for an organization to be divided into various divisions where people with diverse skills are kept together in the form of groups that focus on particular customers or services. Each division has its own finance, health services, human resources and marketing staff. Each division has its own knowledge, abilities, expertise and resources required to function properly and handle tasks on its own. Changes in the environment do not affect the HCO. With a decentralized authority, departments under the divisional form are able to monitor themselves and adjust accordingly, and make faster
When an organization grows beyond the smallest operation, management divides work vertically, as those at the top delegate more of their work to those below them. The vertical hierarchy establishes what decisions people at each level can make. Centralization is when those at the top make most decisions,
Organisations must organise a structure so that their objectives can be achieved. A company will have different departments and procedures with each one having a special function. All of these organised departments and procedures are linked so the company can run efficiently. For many organisation this can be very complex has they will have offices in international countries around the world.
Effective organizational structures define how job tasks are subdivided, grouped, coordinated, and managed. Six key components of organizational structures include division of labor, departmentalization, chain of command, span of control, centralization, and formalization (Remme, Jones, Van der Heijden, & De Bono, 2008, p. 79). Each element influence how employees interact with each other to reach organizational goals. Different structures are common in similar organizations among high performing organizations (Reimann, 1974, p. 707). The most appropriate structure will depend on the unique needs and culture of the organization.
Each department division of labor must consist of teams that cooperate with each other. The department divisions we will talk about in detail are: training, construction and store design, research and development and marketing.
Structure and hierarchy come from how work and the work processes are coordinated together and relating how tasks and coordination of these tasks is to be obtained. When determining the authority in the structure of an organization, there are two major options, centralized and decentralized. A centralized organizational setup is where the authority to make important decisions is retained by managers at the top of the created hierarchy whereas a decentralized organizational setup is where the authority to make important decisions about organizational resources and to initiate new projects is delegated to managers at all levels in the hierarchy. Each choice is made based upon the main goal/task of the organization and what would better fit the organization. Whether work/the
Departments in businesses all partake in important roles, departments such as human resources, accounting and finance, production amongst others remain vital to the company so it can work progressively. However, there are key departments which are desired more than others.
Organizational structure is a formal relationship between management and the employees. It is a way to motivate the employees and get them to working. It is also away to get employees to follow the company goals, and work together as a team. To make an organization work they need to have an organized structure to be able to run the company. The mission
Departmentalization includes two parts Traditional Organization Structures and Horizontal Organization Structures. Traditional Organization Structures is divided three structures that are Functional,
Organizational functions within an organization are Sales and Marketing, production, human resources, finance, Research & development, and Purchasing etc. Each of them work together to achieve the organizational objectives. Interrelation of these function relay on the base on dependency and also the structure of organization. Relationship of these function different in each organizational structure. Interrelation of these function have some advantages and disadvantages.