1. DEFINITION :
Departmentation can be defined as the process by which activities or functions of enterprise are grouped homogeneously into different groups.
The administrative units are called divisions,units or departments.

2. PROCESS OF DEPARTMENTATION
TOP LEVEL – PRIMARY DEPARTMENTATION
MIDDLE LEVEL- INTERMEDIATE DEPARTMENTATION
LOWER LEVEL- ULTIMATE DEPARTMENTATION OR SECONDARY DEPARTMENTATION

3. VARIOUS STEPS INVOLVED IN DEPARTMENTATION ARE:
To identify task or duties.
To analyze details of each trade.
To describe the functions or to group similar activities.
To entrust the grouped activities into departmental heads.
To define the authority and responsibilty of departmental heads.

4. NEED OF DEPARTMENTATION
SPECIALIZATION
FIXATION OF RESPONSIBILITY
FACILITIES APPRAISAL
FEELING OF AUTONOMY
DEVELOPMENT OF MANAGERS
EXPANSION

5. DANGERS OF DEPARTMENTATION
MAKES COORDINATION DIFFICULT….
DIFFICULTY IN COMMUNICATION….
CREATES GAP BETWEEN TOP MANAGEMENT AND WORKERS….

6. TYPES OF DEPARTMENTATION
Functional departmentation
Territorial or geographical departmentation
Productwise departmentation
Customerwise departmentation
Processwise departmentation
Timewise departmentation

7. Functional departmentation
Grouping the activities of an enterprise in accordance with the functions to be performed is known as functional departmentation.

8. President
Asst. to President
Personnel
Marketing
Engineering
Production
Finance
Engineering administration
Financial planning
Production planning
Market research
Preliminary design
Industrial engineering
Budgets
Marketing planning
Electrical engineering
General accounting
Production engineering
Advertising and promotion
Mechanical engineering
Cost accounting
Purchasing
Sale administration
Hydraulic engineering
Tooling
Statistics and data processing
Sales
General production
Packaging
Quality control

9. Advantages.. Simple and logical High degree of centralisation
Eliminates duplication of activities
Facilitates delegation of authority
Facilitates coordination

10. Disadvantages… Lead to internal frictions
Leads to excessive centralisation
Delay in decision making

11. Productwise departmentation
In a large sized diversified enterprise grouping the activities on the basis of product or product line is found to be very useful for effective administration and increased efficiency.

12. President
Marketing
Personnel
Purchasing
Finance
Instrument division
Indicator lights division
Industrial tools division
Electronic meter division
Accounting
Engineering
Engineering
Accounting
Production
Sales
Production
Sales

13. Advantages… Better customer service.. Solves coordination problems..
Flexible..

14. Disadvantages…
Expensive..
More persons are required..

15. Territorial or geographical departmentation
An enterprise having its operations spread over wide geographic area may go for departmentation on the basis of territory.

16. President
Marketing
Personnel
Purchasing
Finance
Western region
Southwest region
Central region
Southeast region
Eastern region
Personnel
Engineering
Production
Accounting
Sales

17. Advantages.. Enables to cater to needs of local people.
Facilitates effective control.

18. Disadvantages.. Expensive method Leads to duplication of activities
Coordination may become difficult

19. Thank you…..