mbai itm u2.2 departmentation
TRANSCRIPT
Patterns/types of departmentalization
i. Functional ii. Productiii. Processiv. Territory v. Customer vi. Time vii. Matrix
i. Functional departmentation Positions are grouped according to
their main functional (or specialized) area.
MD
Prod. HR Fin Marketing
Advertising sales MR
ii. Product divisions
Product divisions are divisions created to concentrate on a single product or service
CEO
Car division Truck division
marketing Fin prod
Bus division
iii.Process
Activities are subdivided on the basis of their processes of production
Similar machines are grouped into separate sections
iv. Territory
Geographic divisions are divisions designed to serve different geographic areas.
HQ (Bombay)
East Zone (Kolkata)
Central Zone(Kanpur)
Ajmer Division
Branch
Branch
Chandigarh division
Jalandhar division
North Zone (Delhi)
v. Customer
Customer divisions are divisions set up to service particular types of clients or customers.
Ex. Pharma company supplies their products to hospitals, govt., retail stores, other company etc
HQ (Bombay)
GovtRetail store
hospitals
Other company
vii. Matrix structure Matrix management is a type of
organizational management in which people with similar skills are pooled for work assignments.
An organization with a matrix structure has a functional and a divisional structure at the same time.
Report to two bosses
For example, all engineers may be in one engineering department and report to an engineering manager, but these same engineers may be assigned to different projects and report to a different engineering manager or a project manager while working on that project. Therefore, each engineer may have to work under several managers to get their job done.
Multiple command-and-control structure in which some employees have dual responsibilities and dual bosses. These employee report to one boss (a project manager, for example) for day to day operations, and to another boss (the departmental head, for example) for functional responsibilities.
This approach is most suited to situations with
fluctuating workloads, such as managing large projects or product development processes.
Centralization All the powers of decision making
are concentrated in top management
CEO
Marketing manager
Finance manager
HR manager
Production manager
R & D manager
Decentralization/Delegation Power and authority are delegated to
lower levels. When org is so large, to reduce burden of
top management, operations are geographically isolated
- Advantages:- Faster decision- Development of lower level- Top manager can concentrate on other
issues- Lower level can make good decision as
they are close to the problem
Decentralization
HQ (Bombay)
East Zone (Kolkata)
Central Zone(Kanpur)
Ajmer Division
Branch
Branch
Chandigarh division
Jalandhar division
North Zone (Delhi)
References
1. https://lh6.ggpht.com/SZZYfx5ZVQfPCBWQ30KjdKDWa1V4kIT_V9aUFG3UD25UW8vjrakbELLwzBKpAxS3glgWhg=s114
2. https://lh4.ggpht.com/FV9OchaMi4jEj7bImrY7FbuyXcJck4pU0l6PsgtY_UzOthVSposa726_JQ1aXj9H9mnpgw=s99
3. https://lh5.ggpht.com/CieF0-uxs5ogBVKH-bp6NLhliLr49S8Rkcleeu3ARd76xG9aKkwj0hZtUrqTrrGi0Gx2=s115