Creating an organization that groups activities based on a specific process flow creates higher productivity. It suits well for those organisations which have single product line. Departmentation by Function: Similar activities of a business are grouped into major departments or divisions under an executive who reports to the chief executive. As a professional loss control and safety organization servicing the many customers of The Hartford Insurance Company, we are constantly seeking new and innovative solutions to our customer's problems. Full attention can be paid to local customer groups. Teamwork improves communication, it isn't just about exchanging information - it is about ideas, feelings, hopes and desires, we find this when we communicate with people we trust and respect. Departmentalization specifies how employees and their activities are grouped together.
Activities can be grouped according to the work being done, to pursue economies of scale by placing. Division of labour creates specialists who need coordination. Functional departmentalization is a method that has been and still is successful in most organizations. New businesses don't always have the money to pay all the employees it would take to fill every department. Most large international firms use this approach.
This approach allows the credit card company to create products and services based on a specific customer type, with experts in that field. Listening and retaining as much of the information communicated is the end result of being actively focused on your subject. Department store, Departmentalization, Division of labour 1487 Words 7 Pages Why is organizational structure important to organization? Continuously repeating the same task decreases employee productivity Jane describes her organization as slow to resolve problems. Originally developed in aerospace companies, the idea of the matrix spread rapidly to such diverse companies as , , and Shell Oil and is used in government agencies as well. The advantage of matrix departmentalization is allowing the organization to efficiently manage large, complex tasks and efficiency avoiding duplication. The benefits and Limitations of Matrix Structure are given in table 10.
Myopia When management segregates departments, workers tend to forget goals beyond their own area's focus. If you ask many students about their opinion on homework, most of them will tell you that they hate it but did you know that homework is good and very important. Departmentalization is the grouping of activities and responsibilities by sub-units of the organization. Managers need to be highly - skilled experts in just one or two areas E. Personnel requirements are assessed and the physical resources needed to accomplish the objectives determined.
Bases of Departmentation There is no single best way of departmentation applicable to all organizations or to all situations. Departmentalization based on the division of an area of operation into different zones is shown in the following image. Environment — Dynamic environments require organic structures; mechanistic structures need stable environments. But promotions, salary hikes and annual reviews come under the functional boss. Only the departmental heads are held responsible for defective work. Such myopia makes it difficult for managers to marshal subordinates for the company's vision.
I find it interesting how credit card companies use departmentalization to categorize their customers. An all-India examination body outsources receipt of examination forms, preparation of list of cheques, filling deposit slips of the bank, despatch of admission tickets, checking of marks etc. Various economies relating to production, assembly and handling can be availed. In a highly decentralized organization, decision-making authority is pushed down the organizational hierarchy, giving lower lev. The territory may be known as district, division or region.
The advantages include the functional area is staffed by experts, managers are familiar with only a relatively narrow set of skills so supervision is faciliated, and the coordination of activities is fairly simple. At each of the Department Heads, we also have a staff that works in each department, with an Office Supervisor. This pattern of departmentation facilitates the optimum use of specialized skill, labour and capital. 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. Five basic types of departmentalization see Exhibit 8-2 are commonly used in organizations: -Functional.
Departmentation-Combined Base: Sometimes, several bases of departmentation may be used simultaneously. In a restaurant environment, this could take the form of individual customers versus catering for corporate clients and hosting group events. Better, Employment, Human resource management 1425 Words 7 Pages Do you feel community service is important to a community? Image Credits © Moon Rodriguez. Functional departmentalization can be used in all types of organizations. Functional departmentalization also facilitates coordination since a supervisor is in charge of one major area of activity.
This narrow thinking doesn't train managers in the kind of broad-based vision necessary to lead others at the executive level. Since the top managers are responsible for the end results, control shall become effective. 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. Use of staff specialists work being shared, wider span is possible. For example, a large company may operate globally through its different zonal departments established on a country basis. Which means all the process need to be share to every levels and decentralized authority is allowing a significant amount of worker within the organization make the decision necessary to solve the problem.