Case study

Departmentation

Best Food Products Company

Summary

Mr.Srinivasa Raghavan, the chairman of the best Food Product Industry.

Problem faced by Mr. Raghvan Regadring working of vice presidents.

Summary

Example of sales vice president

Mr.Raghavan splitting vice president and want to introduce product

wise departmentation. 

Summary Many of the branded food products were produced and used same

factory equipment and same raw materials.

Consequently, Mr.Raghavan came to conclusion that the best thing to

do was to set up six product managers reporting to a product

marketing manager.

 

Summary

Each product manager responsible for each product.

Mr.Raghavan realised that he could not give these product managers

actual line authority over the various operating departments of the

company. 

Summary

He was concerned about this problem but one of his friends on

university faculty for suggestion.

Mr.Raghavan resolves to put the product structure in his organisation

as outlined but he wondered how he could avoid the problem of

confusion in reporting relationships.

Question Answer for discussion

1. Do you agree with Mr.Raghavan programme? Would you have done it differently? 

1. you agree with Mr.Raghavan programme? Would you have done it differently? Yes, we do agree with Mr.Raghavan programme.We would have done it differently by doing

departmentation by territory :Large companies that distribute products on a massive

scale, nationally. Decisions regarding product design, pricing and marketing may left to the discretion of zonal managers who are close to customers and know their zone very well and know their customers’ needs.

1. you agree with Mr.Raghavan programme? Would you have done it differently? 

Territorial departmentation reduces transport costs.Territorial departmentation helps local managers to assess

the needs of local customers closely and serve them well.Economics of localized operations are also available.

1. you agree with Mr.Raghavan programme? Would you have done it differently? Business expansion across various regions is possible.Each region head can focus attention on a region in an

exclusive manner and gain comfortable experience in handling the peculiar problems of a local unit independently.

2.Exactly what would you do to avoid any confusion in this organisation?

2.Exactly what would you do to avoid any confusion in this organisation?

For avoiding any confusion in this organisation we would advise to do things we have mentioned below:

Performance appraisal :The performance of people working in department can

be appraise easily against the assigned goals and targets.

So in this case a chairman Mr.Raghavan can do performance appraisal of his vice presidents.

2.Exactly what would you do to avoid any confusion in this organisation?

Communication and control :Departmentation facilitates communication,

coordination and control and contributes to the organisational success.

In this case Mr.Raghavan can have a communication control over his vice presidents

2.Exactly what would you do to avoid any confusion in this organisation?

Responsibility :In responsibility people know what to do and what not

to do and they also know what they are supposed to do in order to meet targets and deadlines.

When they fail to live up to expectations and go off the track it is easy to find out where things have gone wrong.

Conclusion

Thank you