The structure and process of

organising, Organisation
Structure: Departmentation

By - Aakash Kumar (B190424CS)

The structure of organisation

1. Organisational Structure refers to the way in which a group is formed, its lines of
communication, and its means for channeling authority and making decisions.
2. It clarifies the formal relationships individuals in the various positions within the
organisation.
3. The act of organising involves integrating, balancing and coordinating the
activities of people working together for seeking common goals.
4. The organising process, thus, establishes working relationship among
employees by assigning those tasks and giving them enough rights (i.e. authority)
to perform those tasks.
5. It is because when employees accept assigned work, they become responsible
for performing it, and for discharging responsibility they are given requisite
authority. The person who gives authority is called 'superior' and the person to
whom authority is given are known as 'subordinate'.

6. Thus, the process of organising gives rise to a network of

authority-responsibility relationships among members of the organisation. This
network of authority-responsibility relationships is called 'organisation structure'.

Why do we need an Organisational Structure?

All Organisations have a management structure that determines the relationships
between functions and positions and subdivides and delegate roles,
responsibilities and authority to carry out defined tasks.
Process of Organising - Steps:

The steps involved in the process of organising are-:

1. Identification and enumeration of activities
2. Division of Activities
3. Grouping-up of Activities
4. Assignment of group of activities
5. Granting necessary rights
Organisation Structure: Departmentation

1. Departmentation means the process by which similar activities of the

business are grouped into units for the purpose of facilitating smooth
administration at all levels.
2. Division of work into smaller units and their re-grouping into bigger
units (departments) on the basis of similarity of features. Each
department is headed by a person known as departmental manager.
3.Departmentation provides scope for organisation's growth (along the
same product lines) and expansion (addition of new product lines).
Departmentation by Enterprise
Function

By - Abdul Wasih M A (B190465CS)

Departmentation by
Enterprise Function
This form of departmentation is to group
the activities being performed along the
line of functions of the organization.
Advantages
● It shows in a logical manner the basic functions that are being performed in the organization.
By merely glancing at the chart, one would quickly see these functions.

● The form of departmentation follows the principles of occupational specialization. These are
in purchase, production, marketing and finance. As a result, any one that has a flair for any of
these areas can move in to such area and contribute his quota toward the realization of the
organization's objective.

● The form of departmentation simplifies training. This means that whenever there is a new
employee on the job, training can be organized for such employee. The older person in the
department can put him through in the fine rope of the department's job without moving
outside the department.
Disadvantages
● It tends to create over specialization. When employees in a department over specialize, it
tends to narrow their view points and orientations to the extent that problems of the other
departments are not appreciated.

● This form of departmentation makes the development of the specialist managers to be

difficult. This is because as specialists, their viewpoints are narrowed and can not readily be
made a general manager because a general manager as the name implies is a generalist; as
such, his mind is sufficiently broadened to take balanced decision for the overall interest of
the organization.

● The departmentation creates another limitation of preventing the organisation to grow

economically as a system. Each department tend to operate along its own area of
specialization. Over specialization reduces this support and cooperation.
Departmentation by Territory or
Geography

By
Abhinav Ajithkumar (B190461CS)
Abin Jacob John (B190011CS)
Departmentation by Territory or geography

● Departmentation is done on the basis of territory or geography where

in activities in each region is assigned/grouped to a
manager/employee.
● Commonly used by large scale firms spanning across wide
geographic areas.
● Used by enterprises whose activities are physically or geographically
dispersed .
● Territorial departmentation can also be done within a local firm.
Ex: Assigning guards to south or east parts.
● Department stores assign floorwalkers like janitors , window washers and the
like, on this basis.
● Government agencies like courts , the postal service and so on, use territorial
departmentation to provide same service simultaneously across the nation.
● Especially popular for sales and production with some geographic market
segregation and provides arrangement for training where accomplished
executives can move on to more important regions.
Advantages of Departmentalization by Territory

● Regional departmentalization helps local operations.

● It facilitates the expansion of the business into various regions
throughout the nation.
● There is better coordination of activities through the setting up of
geographical divisions.
● It helps to meet local demands more effectively.
● There can be real and face to face communication with the local
clients.
● It helps to adapt to environmental change.
Disadvantages of Territory Departmentation

● In territory departmentation, there may be a problem of integration

of various regional offices.
● There is the possibility of duplication of physical facilities.
● It is more difficult to control over regional departments.
● There may be a lack of skilled and efficient persons to take charge
of regional departments.
● Similarly, there is a need for candidates who have more general
abilities.
● It is a costly method of departmentalization.
Departmentation of Organisation by
Customer Group

By
Adwaith Ram kishore (B190808CS)
Ajith A (B190369CS)
What is Customer-Based Structure

Customer departmentalization is where the organization’s activities are ready to

respond to and interact with specific customers or customer groups.
This organizational form is used when great emphasis is placed on effectively
serving different customer types, enhancing the sales figure and brand image
of a company.
The concept is that customers in every department have a common type of
needs and problems that may best be solved by specialists.
This is often the case in banks, financial institutions or service industries such as
marketing, advertising and insurance.

We find an air-conditioning company like Blue Star organizing its business around
domestic and industrial air-conditioning units.
Example

Adobe Creative cloud is a well known company to creative people.

.

Here the bottom business segment is split into different groups based
on customer requirements and their fields of interest , ie:

● Adobe photoshop for photo editors ,

● Adobe illustrator for graphic designer / logo designers,
● Adobe animate for animation creators,
● Adobe premiere pro for video editor and content creators etc.
Advantages and Disadvantages of
Departmentation by
Customer Group
Advantages of Customer Departmentation

● Encourages concentration on customer needs.

● Customers feel that they have an understanding supplier.
For example, the manufacturer may sell to wholesalers and
industrial buyers.
The Wholesaler requires a product of dependable quality with
assured supplies.
The Industrial buyer wants products of high quality plus a service
that includes installation and repair of the product and specific
training of the company’s employees.
● Helps the organization to get the correct feel of the market dynamics in terms of
preferences of the customers, degree of competition, competitors’ strategies etc.
● Saves customers’ time.
Disadvantages of Customer Departmentation

● May be difficult to coordinate operations between competing customer demands.

● Requires managers and staff expert in customers’ problems.
● There is a possibility of under utilization of facilities and employees specialized in
terms of customer groups. Small organizations particularly cannot afford the
expenditure involved because some amount of duplication of the facilities is
inevitable.
● Customer groups may not always be clearly defined.

Eg: Large corporate firms vs. Other corporate businesses

Departmentation by Product

By
Akshay K Biju (B190803CS)
Alex M Zubin (B190431CS)
What is Departmentation?
The first step in designing an organization structure is to divide whole
work into a number of jobs to ensure that no important activity is left
out. The next step is to bring together homogeneous jobs into groups
and to decide their relation to each other. This process is known as
departmentation
Product Departmentation
● A single business unit may manufacture and sell different types of products.
Then, each type of product or service is allocated to a separate
department.

● Product departmentalization is an organizational strategy that divides

employees into teams to work on all aspects of a particular project or
product line.

● Every product line has an individual department or team, and department

members all specialize in different aspects of product development and
distribution.
Structure of Product Departmentation
● Under product departmentation, a single manager, often referred
to as the product manager, is delegated authority over all activities
required to produce and market that product.

● The focus in the product departmentation, therefore, shifts on to

the product and all the activities related to the production and
marketing of the product is delegated authority over all activities
required to produce and market that product.
Structure of Product Departmentation-example
ADVANTAGES
● Maximum utilisation of personal efficiency of workers

● Easy to fix the responsibility on the departmental heads

● New products introduced without any difficulty

● Gaining economy in manufacturing and marketing of products

● Attention to manufacture

● Effective coordination and control

● Better Services
DISADVANTAGES
● There is a danger of duplication of work

● It increases the number of personnel which in turn increases the cost of operation

● It requires additional cost for maintaining a sales force for each type of product

● In proportion to the increase in the number of employees, the problem of control at

the executive levels become more difficult

● Machines and equipment in each product department may not be used fully
Organization structure:
Departmentation
E. By Process

By
Ambati Sathwik (B190500CS)
ANAGHA S N (B190475CS)
Definition:
Process-based organizational structures are designed around the end-to-end flow of different
processes, such as "Research & Development," "Customer Acquisition," and "Order
Fulfillment."
Example:

A textile mill has many departments such as Ginning, Spinning, Weaving, Dyeing and Printing,
Packing and Sales. Each section will be in charge of separate specialised persons.

A manufacturing plant’s activities may be grouped into collecting material, grinding, welding,
assembling and finishing departments.
Advantages:
● Suitable for organisation manufacturing products requiring number of stages.
● Ensures specialisation.
● The costlier machines can be used effectively.
● There may be economy in operation.
● This type of departmentation facilitates proper and optimum use of resources.
● This departmentation helps the top management to have effective performance control.
● This organizational model also promotes intradepartmental (within the department) and
interdepartmental (across multiple departments) teamwork.
● It increases efficiency and speed.
Disadvantages:

● Departmentation by process is very costly.

● More specialists are essential to each process.
● Whole process may be affected due to problem in one process.
● Difficulty of co-ordination
● Conflicts may arise among managers of different processes.
● Unsuitable where manufacturing activity does not involve distinct processes.
Departmentation
Matrix/Grid

By
Ayush Peter Junior (B190921CS)
Battini Balaram (B190447CS)
What is Matrix/Grid management and how does it
work/
● A matrix organization is a company structure where teams report to multiple leaders. The matrix
design keeps open communication between teams and can help companies create more innovative
products and services. Using this structure prevents teams from needing to realign every time a new
project begins.
● Matrix organizations have two or more management reporting structures. While this may seem
confusing at first, team members typically have a primary manager for their department.Reporting to
a department manager functions similarly to a traditional work structure. For example, team
members working in IT report to the IT department head. The IT department head reports to the vice
president of their division. Eventually, all reporting relationships lead to the CEO.
● The difference in a matrix structure is that team members also report to project managers. Projects
often require work from members of various departments like IT, marketing, and finance, which is
why having a separate manager for individual projects makes sense.
Types of matrix management
● Weak matrix:In a weak matrix, the project manager has the least amount of decision-making power
compared to the other matrix management types. When the project manager has limited authority
over the project, the matrix becomes weak because the project budget and timeline is in the hands
of the department head. Creating a communication plan can keep communication from getting lost
in a weak matrix.
● Balanced matrix:In a balanced matrix, the department head and the project manager have equal
authority and team members report to both of them. This keeps communication open between
everyone in leadership roles and allows the project to move forward smoothly.
● Strong matrix:In a strong matrix, the project manager has most of the decision-making power over
the project, while the department head has more limited authority. This creates a strong
organizational structure because the project manager has full ownership over the project. The
department head can oversee the project but doesn’t make key decisions.
Advantages

● Enhanced flexibility
● Highly motivated/committed team members
● Opportunity to learn new skills
● Efficient use of human resources
● Enhanced cooperation
● Decentralization
Disadvantages

● Employees: “whom should we report to?”

● Anarchy in management
● Dynamics of group behavior
● Time intensive