Preparation Of A Successful Business Methods Follow Classical Organization Structuring and departmentation


Classical Organization Structuring and departmentation:-The classical hierarchical organization is the most influential structural rationale of the modern corporation. Ti provides the foundation upon which adaptations and modifications are constructed.The key words are structure and formal. The basic tenets are specialization of work (departmentation), span of management (supervision of a limited number of subordinates), chain of command (authority delegation), and unity of command (no subordinate has more than one superior). The structures take on the shape of a pyramid. The manager determines work activities to get the job done, writes job descriptions, organizes people into groups, and assigns them to superiors. He or she then establishes objectives and deadlines and determines standards of performance. Operations are controlled through a reporting system. Because the classical format is so prevalent, we will examine the basic tents of this form of organization.Departmentation deals with the formation of organizational units. Among the first components of an organization structure is the manner in which work is divided into homogeneous groups of activities. The activities form departments. Methods of departmentation that experience has proved logical and useful are by function, by product, by territory, by customer, by process, and by project. For example, determination by function is shown at the top level by the common functions of marketing, personnel, operations, R & D and finance. The breakdown of operation into the future division, the metal products division, and the floor-covering division is an example of product organization. The sales department is organized into eastern and western districts to establish a territory departmentation, and these territories are further departmented by the customer breakdown of retail, government, institutions, and manufacturers’ representatives. The manufacturing operation in the metal products division depicts both process (assembly, welding, stamping) and function (maintenance, power, shipping). Finally, a special project team, organized for new product development, reports to the president. 

Functional departmentation is by far the oldest and most widely used form of grouping activities. In almost every organization there are three fundamental activities of producing, selling and financing to be performed. These are the basic functions. As organizations grow, additional staff or service functions are added. Almost all organizations show some functional division of labor.
Product derpartmentation is common for enterprises with several products or services. The method is easily understood an takes advantage of specialized knowledge. Common examples are department stores (e.g., appliance, furniture, cosmetics) and banks (commercial, personal).

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