DEPARTMENTATION…

INTRODUCTION…

Departmentation is a part of the organization process. It involves the grouping of common activities under a single person’s control. The activities are grouped on the basis of a function of the organization. This work is done by a Chief Executive of the concerned organization.

MEANING…

Departmentation means the process by which similar activities of the business are grouped into units for the purpose of facilitating smooth administration at all levels.

DEFINITION…

According to Koontz and O’Donnell“Departmentation is a process of dividing the large monolithic functional organization into small an flexible administrative units”Departmentation refers to the classification of activities on operations of an undertaking into functionalized categories.

NEED AND Importance…

1. Departmentation increases the operating efficiency of the employees.

2. There is a fixation of responsibilities to various executives of the organization.

3. The departmental heads (managers) are given certain powers and are allowed to take their own decisions.

4. The workings of various departments are evaluated by the top management and the department not managed properly are identified.

FACTORS…

1. Specification: Departmentation should yield the advantages of specialization.

2. Control: There should be proper control under Departmentation and simplification of the control process.

3. Recognition of Local Conditions: Departmentation should take into consideration the local conditions of the place concerned.

4. Economy: It should be borne in the mind that expenses are incurred in the creation of separate departments.

Organization structure…

Etymology…

The word Organisation is derived from the word Organism which means a structure of body divided into parts that are held together by a fabric of relationship as one organic whole.

INTRODUCTION…

In an enterprise, many managers and employees work together for achieving common objectives.In simple words, organising means arranging the ways and means for the execution of a business plan.All organisations at their inception must have their own clear vision and an articulation of purpose, if they are to be successful.

MEANING…

In the words of Kast and Rosenzweig,Structure is the established pattern of relationships among the component parts of the organisation.

SIGNIFICANCE…

1. Facilitates Administration: Effective administration of business will not be possible without the support of sound organisation structure.

2. Facilitates Coordination: Its acts as means of bringing coordination and integration among the activities of individuals and departments of the enterprise.

3. Facilitates Division Of Work: Different departments are created by division of work, specialisation and orderly working of the enterprise.

4. Determines Individual Responsibility: Responsibility is an obligation to perform an assigned work.

fORmal organiZation.

1. Formal Organisation is created by top management deliberately and consciously.

2. It can be shown through organisation charts.

3. The superior-subordinate relationship is clearly defined.

4. Communication is normally through formal channels.

5. It is suitable to large business enterprises.

Informal orGanIzation.

1. Informal Organisation develops by social forces existing within the Formal Organisation.

2. It cannot be shown through organisation charts.

3. The superior-subordinate relationship is absent.

4. Communication is normally through grapevine.

5. It is suitable to small business enterprises.