ORGANIZATIONAL BEHAVIORPRESENTATION BY

YOGENDRA SHARMASIDDHART GOPE

SOUVIK SINHASOUDIP

ABHAY KUMAR VIVEK RAJ

PRESENTATION TOPICSelect a company and identify the

departmentation pattern (or patterns) it uses. Draw an organization chart for the firm. Why do you think the company selected the type of departmentation it did? Would you recommend it?

Departmentation Departmentation by enterprise function

means grouping of activities according to the functions of an enterprise, such as production , selling and financing

Departmentation is a means of dividing a large organization into smaller , flexible units

Advantages Increase the efficiency of the organization

as various activities are grouped togetherFurnishes means of tight control at the top.Simplifies training.It provides for fixation of standards of

performance and ensures effective controlCreates opportunities for the departmental

heads to take initiative

DisadvantagesReduces coordination between functions as

the organization is divided into various partsResponsibilities for profits is at top only.Slow adaptation to change in environment.It increases the levels of management which

is expensive and thus increases the gap between the top management and the workers

Departmentation creates difficulties of communication among the various departments of the organization

Factors affecting DepartmentationTo get the benefits of specializationControl should be effective so as to ensure

clear authority and responsibilityCoordination should be taken into

considerationKey activities need to be separatedExpenses involved in creating separate

departments

Basis Of DepartmentationFunctional DepartmentationProduct wise DepartmentationTerritorial or Geographical DepartmentationProcess wise DepartmentationCustomer wise DepartmentationTime wise Departmentation

Functional Departmentation• Grouping of common or homogeneous activities to

form an organization unit is known as functional departmentation

• Further functions in an organization are divided in two categories basic and secondary functions

• Basic functions are those which are necessary for the smooth running of the business like production ,marketing , finance

• When span of management is too large then further departments are created within the main departments they take care of secondary functions

• In this case like the basic function is marketing but it may further be divided into advertisement , sales , market research

Product wise Departmentation

Product departmentation involves the grouping together of all the activities necessary to manufacture a product or product line

Eg In an automobile organization the departmentation could be car division , truck division , bus division

DEPARTMENTATION BY TERRITORY OR GEOGRAPHY

Departmentation by territory or geography means

“ Grouping of activities by area or territory is common in enterprises operating over wide geographic areas”.

Organizations which are involved in banking , insurance , transportation

Eg India could be divided into north , south , east , west , central zones

Further North zone can be divided into Chandigarh , new Delhi , Jalandhar , Ajmer divisions

Process Departmentation

In this processes involved in production or various type of equipments used are taken as basis of departmentation

The basic aim to do process departmentation is to achieve economic benefit

Eg process departmentation in case of textile organization can be by dividing the production into spinning , dyeing , weaving , finishing departments

Customer wise Departmentation

Grouping of activities around marketing channels involves making an organization structure reflect the ways an organization reaches the ultimate customer

Advantage of this type is that it focuses on customer who are the ultimate suppliers of money to the organization

Eg in pharmaceutical companies different customers could be doctors , hospitals , government , retail stores

Further it could be wholesale , retail , export

Time wise Departmentation

• In some organizations where work is performed through day and night , the work is divided into shifts

• Thus when an organization may operates on three shifts, three different departments may exist

Wal-Mart Stores.TypePublicTraded asNYSE: WMTDow Jones Industrial Average Component Industry Retailing Founded1962Founder(s)Sam Walton Headquarters Bentonville, Arkansas, United States36°21′51″N 094°12′59″W Number of locations8,970 (2011)Area servedWorldwideKey people Mike Duke (CEO)H. Lee Scott (Chairman of the Executive Committee of the Board)S. Robson Walton (Chairman)

DEPARTMENTATION OF WAL-MART

APPAREL, SHOES & ACCESSORIES

AUTO & TYRES

AccessoriesBabyBagsBoysGirlsJuniorsMenShoesWomen

Atv, Motorcycle, RVAuto ElectronicsCar Care &

MaintenanceExterior Accessories Interior AccessoriesTiresTires AccessoriesTools & EquipmentWal-mart Tyre & Lube

Express

Beauty ElectronicsBath & bodyFragrancesHair CareMakeupMassage & SpaMen’s GroomingShaving

AutoCameras &

CamcordersCell phones &

ServicesComputersGPS NavigationHome Audio &

TheatreI pad & EreadersIPod & MP3 playersTV & Videogames

MOVIES MUSICBlue-ray discsMovie centreMovies (DVD)New ReleasesPreordersTV ShowsVideo on demand by

VUDU

CD StoreMP3 DownloadsMusical InstrumentsNew ReleasesPreordersTop 100 CDs

OFFICE PHARMACYBreak room SuppliesBusiness Office

Furniture’sHome Office

Furniture'sJanitorial SuppliesOffice TechnologySchool supplies

$4 PrescriptionsCreate An AccountClinicsFree Home DeliveryMedicareMobile PharmacyRefill PrescriptionsSpecialty PharmacyTransfer

Prescriptions

It increases the operating efficiency of the employees.

It makes the executive alert & responsible in his duties.

It increases the prestige & skill of the departmental heads.

It help in better co-ordination among the managerial personnel.

Yes, we recommend departmentation for the following reasons :-

THANK YOU