The first task in designing an organization structure is the identification of activities and grouping them on the basis of some similarity.
Departmentation
The first task in designing an
organization structure is the identification of activities and grouping them on
the basis of some similarity. The process of grouping the activities is known
as departmentation. The need for departmentation arises because of
specialization of work and the limitations on the number of subordinates that
can be directly controlled by a supervisor. Different bases for grouping are, functions, products, production
processes, geographical territories, customer segments etc. Following are the
factors that are to be considered in making departmentation:
Specialization
The basis of departmentation should reflect the
specialization in performing the work. If the organization structure reflects
well the division of work in the organization through grouping of activities in
departments, it could efficiently and effectively contribute to the
organization operations.
The best result can be achieved when all activities
are performed in coordinated way and each activity contributes in the positive
way to others. Thus, the basis of departmentation should ensure that closely
connected operations are put together.
Control is the process of analyzing whether the
intended results are being achieved and is according to the target and planning
made. If the results are not up to the expectations or not in the line we
thought of, control mechanism should be applied. If the structure is properly
made in the organization over seeing, responsibility and corrective measures
could be taken immediately.
A balance should be maintained between the cost of
creating a department and its contribution. The existence of a department is
desirable only when it contributes more than its cost. For example if the
railway administration wants to create a new zone it should consider the cost
involved in starting the zone and the benefit that arises in terms of money
other than administrative efficiency and convenience.
While creating departments, adequate consideration
should be given to the requirements of local conditions. This is more important
to those organizations which operate in different geographical areas. If a MNC
opens a department in India, it should give due consideration to local
conditions, in its own interest.
Departmentation should also take into consideration
the human factor in the organization. Therefore along with technical factors,
departments should be created on the basis of availability of personnel, their
aspirations and value systems, informal work groups, and attitudes of people towards
various forms of organization structure. Often organization structure is a
major source of satisfaction or dissatisfaction to human beings.
Departmentation scheme providing more human satisfaction is likely to
contribute more to the organizational operation.
Tags : Human Resources Management - Organization of HRM
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