Span of Control
Span of Control
Process of Departmentation
Departmentation is done through the following processes:
f) Identification of tasks or duties.
g) Analysis of details of each task.
h) Description of the functions.
i) Entrusting the group of functions to separate specialist heads and providing them
suitable staff.
j) Delineation of scope of authority and responsibility of departmental heads.
Departments can be made on the basis of:
• Functions, e.g., sales, production, personnel, planning, transport, etc.
• Products, e.g., air-conditioners, accounting machines, electronic
calculators, etc.
• Territory, region, or geographical area, e.g., Northern railway, Western
railway etc.
• Customer, e.g., wholesaler, retailer, government.
• Process.
• Appropriate combination of any of these types.
• Taking advantage of specialisation: Division of labour should permit
persons to become specialists in specific types of work.
• Facilitating control: Departmentation should be thought of in terms of
effectively regulating and evaluating the operation of the varied activities of the
undertakings.
• Aid to coordination: Departmentation should not create insoluble problems of
coordination.
• Balancing the costs: Pattern of departmentation should not imply top heavy
expenditure on capital equipment, establishment, incidental expenses, etc.
• Preparation for departmentation : There should be sufficient preparation
before deparmentation is decided upon.
Function wise Departmentation
In most companies, unless they are giant corporations, this is the form of the
organization. The departmental heads will report to the Chief Executive. A typical
department, will have the following structure:
Managing Director
Production Manager
• Production Planning Manager
•Production Engineering Manager
•Industrial Engineering Manager
•Maintenance Manager
•Works Superintendent
•
Product wise Departmentation
Product wise departmentation is resorted to where specialisation is required in
respect of specific products of the company. For example , a company may deal with
eight or nine product lines, e.g., chemicals, drugs, foodstuffs, cosmetics, etc. and
each under a separate division, e.g., Chemicals Division, Foodstuffs Division, etc.
Departmentation by Customers
Departmentation by Customers places greater emphasis on the customers and
distinguishes one type from the other. For example, the division could be industrial
buyers, whole-sellers, government, and pubic undertakings, agriculturists, etc.