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Departmentation by theory encourages focus on customer needs but requires managers and staffs expert in customers' problems.
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What is the methods of departmentation?
1. Functional 2. Productwise 3. Territorial 4. Customerwise 5. Process 6. Composite
Bases of departmentation?
Departmentation is a process resulting out of choice to group tasks according to some criterion. The resultant process of departmentation includes decisions regarding segregating organizational work, allocation of work to persons, telling all involved who is in charge and provide for the support needed by those. Given the nature of these choices and decisions, departmentation and the criteria or bases used for creating departments can have serious impact on the organization's effectiveness. Nine bases of departmentation are common among managerial choices: (a) Departmentation by numbers: Perhaps this is the simplest way to create groups or units within the organization, if we assume that all the individuals available are possessing same skills, abilities and other required qualifications. If so, and if the manager has a fair idea of how many people might be required to carry out the task, the grouping by size is ready. Given this nature, we might guess that this method is more useful where the task requires more of a muscle force (for example, an army battalion, or the building contractors' work-force) rather than use of specialized skill. (b) Departmentation by time of duty: Generally this basis is chosen when the operation or organizational activity is required to be carried on round the clock. The staff which is divided as per the time or shift basis might possess a set of different skills and abilities. Usually we find departmentation using this method at the lower levels of the organization, including manufacturing operations at the plant level, various security and control operations. Within the service sector, we find medical or firefighting services available round the clock, all days of the week. (c) Departmentation by function: This widely used method of departmentation is found in almost all organizations at some level and to some degrees. Groups are created such that within a group, people perform same function or activity, which at the lower level can even be identical. Example is a production department where all the jobs are focused on one activity, and the machine operators or workers assigned to a particular job such as machining or turning might be doing the same work. When work is divided like this, we have different groups performing different activities, so after functional departmentation, coordination among these groups is required. (d) Departmentation by Process or Equipment: This basis of departmentation is sometimes required by the technology itself as part of the production activity, where the transformation of raw material into finished goods is achieved through performance of various processes. Example is production unit of textiles, where workshops dedicated to processes like spinning, weaving, dying etc. sequentially operate to manufacture the finished goods. For other organizations also, sometimes the cost of specialized technology makes more sense for some facilities to be organized by process and be shared. Example is the Electronic Data Processing unit in small a organization. (e) Departmentation by Location or territory: If an organization's activities are scattered and if the differences across locations are significant in terms of customer preferences or the difficulty in handling complex scheduling issues, or the importance of local participation in decisionmaking , it makes sense to use departmentation by territory or location. The Indian Railway, for example is divided along territorial lines into central railway, western railway and so on. This method of departmentation is observed in the sales and service departments of many organizations where the major departmentation at the first level below the head of the organization is along functional line, but at the sub-department level, the sales department would have geographic regions or zones catered to by regional or zonal offices. (f) Departmentation by Product: as the name suggests, the grouping of activities is by the product, which evolves mainly in organizations that have grown into multi-product set-up. The usually preceding functional organization might not be supporting the growth and spread of business across different types of products. The head of the organization might be supported by product managers, in turn who might be supported by various functional sub-departments dedicated to specific product. On a large scale, these product managers become heads of divisions run like separate companies within the overall company. While this arrangement is good for paying close attention to the market, the demand and the competitive scenario for each of the products, it might be too expensive to maintain this type of departmentation unless the sales volumes or profits are high enough to justify it. (g) Departmentation by Customer: One more method to pay close attention to the needs of the customer is to create departments by customer types. We have within banks this type of departments - retail banking for retail customers, corporate banking for business clients, separate services for high net worth individuals, and so on. The rates offered for same products or services might be different in case of some departments compared to the routine business with retail individual customers, because again the volumes or the deal values might be very high. If so, even the procedures and rules, the purchase process, payment methods etc. might be different for these departments. (h) Departmentation by Market or Distribution Channel: Companies who want to ensure that their product reaches the intended customers through multiple channels so that the product enjoys high saliency and provides easy reminder to the customers can consider this type of departmentation. You can take the example of VIP luggage. This product is available in its dedicated, company owned show rooms as well as through the distributors and retailers. Each of the last two sell this brand along with several others. If so, once again you might wonder if the commonly needed service functions such as accounting or human resource management would be provided separately for each department managing a separate channel of distribution or market of the same product. If so, there might be confusion also, apart from high costs. But examining the structures of the organization, we would realize that departmentation by this type is also usually combined with some other basis for the best results. (i) Departmentation by Services: This type is especially meant for combination with other type(s) of departmentation, because it refers to the type of internal services provided within the organization and the number of people engaged in those services. The examples are Management Information System (MIS), Human Resource Management, Legal, Secretarial Assistance, House-keeping, Maintenance, Medical facilities and so on. These services are helpful in keeping the business activities and the flow of revenue-generating processes smooth. However, when dedicated in-house departments are created, sometimes they add to staff and operational costs because the support work required may vary and during the down-side of fluctuating type of business. Additionally, when separate departments such as MIS are created, they might generate volumes of reports which are not found usable by the intended users. Finally, the separation of service form the intended users sometimes leads to great importance attached to the service itself, for example purchasing of most cost-effective parts, but it does not satisfy the need of the intended users. Source: Gerloff E. A. (1985), Organizational Theory and Design - a Startegic Approach for Management, McGraw-Hill Series in Management pp. 228-233
How do you become a territory sales manager?
A territory sales manager requires a vicious dedicated person willing to be consistent and dependable. A head strong and fourth coming position like this can be maintained by applying for any territory sales manager position.
What is departmentalization?
When you have a huge job to be done, just like a big commercial organization has, it becomes difficult to manage each and everything by your own because you have to keep records of so many things.... to simplify your job i.e. to make administration even more easier, work is divided into different units where each unit does a particular job and it also has a particular head to look after it if the work is done properly or not. So from this we can make out that the process of grouping different jobs into different units is called departmentation.
What is the difference between territory manager area manager and zonal manager?
A territory manager is going to have the widest area to cover as they are the people that also control the area manager and the zonal manager. The area manager might deal with a group of stores and the zonal manager might have just one store.
What is an explanation of types of departmentation?
Types of Departmentation I) Departmentation by functions/Functional department II) Departmenation by product or product wise department III) Departmentation by territory/Geography IV) Departmentation by customers V) Departmentation by time VI) Departmentation by process VII) Departmentation by numbers
What is departmentation by function?
The process of grouping various activities into separate units is called departmentation. Departmentation can be made on the basis of functions or product handled. When the departmentation is done on the basis of functions, it is called functional departmentation. Under this all work of same kind are performed in a particular department. The examples of functional basis departmentation is purchase office, sales office, production department, mailing department and accounts department. When an organisation opens departments on the basis of products, it is called product departmentation. The examples of product departmentation are leather division office and plastic division.
What type of departmentation is useful only at lowest level of organization?
Departmentation by simple numbers
What are the benefits of departmentation?
no
Types of departmentation?
There are a number of types of departmentation. These include by time, by location or place, by the functions, or by the process.
What do you mean by departmentation?
The word departmentation generally refers to the process of grouping jobs into different logical units. It is the process of categoring an organisation based on departments to facilitate planning and control. the most common method of departmentation is separating different units as per their function. Most organisations mostly consist of the following departments: * sales and marketing * production * finance * human resources * materials and logistics To accomplish organisational goals, job tasks can be sub divided in a variety of ways. There is no one best way of departmentation that is applicable to all organisation. It differs from situation to situation. It is the method of grouping jobs and resources into department., Most organisation use a combination of the following types of departmentation: * departmentation by simple numbers * departmentation by function * departmentation by geography * departmentation by product..
What is territorial departmentation?
Territorial departmentation usually occurs within organizations and is used by insurance companies. It groups people with activities due to their physical location.
What are the disadvantages of departmentalization?
advantages and disadvantages of associated with each departmentation
What is a geographical departmentation?
this is where an organization is structured according to geographical area.
What is the need for departmentation?
Departmentation is a very impoartant process. Koontz and O'Donnel defines departmentation as, " a process of dividing the large monolithic functional organization into smaller and flexible administrative units." The success of the enterprise can be understood on the basisi of these aspects including: 1. Developement of Managerial skills 2. Fixation of Responsibilities. 3. Manageable units establishments. 4. Budgeting faciliated.
What is the definition of departmentation?
the process of classifying an organisation on the basis of departments or similar activities, to facilitate planning and control
What is the methods of departmentation?
1. Functional 2. Productwise 3. Territorial 4. Customerwise 5. Process 6. Composite
