Most departmental stores will have just about anything you're looking for, from clothes, to pharmaceutical products to food. In fact, many large companies are diversifying in different fields and they prefer product departmentation. Functional departmentalization may be advantageous because it can increase efficiency and expertise since all related activities are performed in one place by one group of people that specialize in that activity. Provide an example of functional departmentalization at your University and using the definitions in your textbook explain why it is suitable example. The responsibility for results cannot be fixed on any one functional head. A high degree of specialization leads to the development of proficiency and professional competence, as well as it enables, and implies, the development of centralized control functions. Responsibility for profits is at the top only.
Diagram Credits © Moon Rodriguez. With common supervision and resources, members within each configuration typically work near one another, so they can use frequent and informal interaction to get the work done. So, the basis of departmentation should ensure that the dissimilar activities are put together in one department. Some questions will include multiple choice options to show you the options involved and other questions will just have the questions and corrects answers. Management development Training given to managers is called development. The manager in charge of a department can take independent decisions within the overall framework of the organisation.
A chain may split its operation along the lines of both product and chain of command by having a food department and a beverage department, with food reporting to the chef while beverage reports to the licensee. Wise leadership creates and changes a company's structure according to management's intended goals. Process departmentalization In process departmentalization, departments are separated based on their role in a production process. Thus, performance appraisal becomes more effective. It brings about specialization in a product or service which makes optimum utilization of human resources. These factors or principles are described below: 1. If an organization's customers are geographically dispersed, it can group jobs based on geography.
Geographic Departmentalization In geographic departmentalization, an organization is organized along geographic lines. This type of departmentalization can also apply to retail stores. Geographic departmentalization may also lead to expatriation and repatriation issues, such as culture shock and intercultural team building and costs, and tensions between the parent company and its subsidiaries. A separate department is created for a single product or product line and all functions like production, finance, marketing, personnel etc. The advantage of functional departmentalization is efficiency of work and is to be done by specialist skills and high qualified.
This structure may be advantageous because it allows its personnel to specialize in developing products and serving the needs of particular markets and classes of customers. Each product division maintains its own specialised personnel due to which operating costs may be high. Departmentalization based on the types or groups of customers to be handled in shown in the following image. Follow principle of occupational specialization. Chain of Command Chain of command departmentalization works when the restaurant is large enough to require more than one management division. Departmentalization by using a combination of two or more different bases is shown in the following diagram. Firstly, the managers focus their attention on some specific problems which provide them effective on-the-job training.
So, along with the technical factors discussed above, departments should be created on the basis of availability of personnel, their attitude, aspiration and value systems, informal work groups, cultural patterns, etc. It's a tight, controlled structure with clear lines of authority and accountability -- an advantage for companies needing a mechanized business approach. For instance, in the army, the soldiers are grouped into squads, companies, battalions, regiments and brigades on the basis of the number prescribed for each unit. First, an entire area of operation e. Because of this, many managers prefer the one-boss reporting relationships in simpler organization structures. Which mean two or more people working together as a group to complete a specific task, by divided the group to work in different departmentalization, to help achieve the organization objectives and goals. It should aim at full utilisation of resources.
A smaller restaurant may use functional departmentalization, such as kitchen operations versus customer service, and combine this with process departmentalization. He really enjoys teaching his sales staff how to help customers find the right stove or refrigerator. It creates a department for each product and that department controls all activities related to the product including development, production, marketing, sales, and distribution. Equally important, employee development may be limited to the work of one functional department, resulting in managers with limited experience and expertise, which can negatively affect customer satisfaction. This method of departmentalization is generally used in schools and colleges for making division of classes. One advantage of this method is that it ensures the development of expertise specific to the political, social, and cultural needs of the region. A bank may have separate loan departments for large-scale and small- scale businessmen.
Efficiency can be achieved if departments are created for each process as each one has its peculiarities. Local Condition: While forming departments adequate attention to the local conditions should be given. Supervision is dual, encompassing technical and administrative managers, and incorporates several reporting systems and interweaves communication lines for transmitting decisions. Products departmentalization: group of employee and work for producing major product or services area in the organization or company. Economy: Creation of departments involves extra cost of additional space, equipment and personnel. Personal skill and specialised knowledge of the production managers can be fully utilised.