Department

TYPES OF ORGANIZATION

“Organization is a system of co-operative activities of two or more persons.” Organization is the process of dividing up of the activities. 1) LINE ORGANIZATION : In this type of organization, authority flows from top to bottom and responsibility flows from bottom to top. 2) FUNCTIONAL ORGANIZATION : The main feature of functional organization is the division of work and specialization. In each department, there is one expert. An expert is not only a counselor but also an administrator. He advices his subordinates. An Expert does not only bear responsibility of his department but also bear responsibility of all departments. 3) LINE AND STAFF ORGANIZATION : Line and staff organization is that in which the line heads are assisted by specialist staff. In each department, there is one expert and some line personnels / line officials. Line official will do all managerial work and expert will give advice to line official or line personnel.

TYPES OF DEPARTMENTALIZATION

Departmentalization is the process of breaking down an enterprise into various departments. (1) FUNCTIONAL DEPARTMENTALIZATION : Functional departmentalization defines departments by the functions like accounting or purchasing. (2) GEOGRAPHICAL DEPARTMENTALIZATION : Geographical departmentalization is an arrangement of departments according to geographic area or territory. (3) PRODUCT DEPARTMENTALIZATION : Companies may have multiple products. . All common activities required to produce and market a product are grouped together. (4) PROCESS DEPARTMENTALIZATION : Departmentalization is done on the basis of processing. (5) CUSTOMER DEPARTMENTALIZATION : Customer divisions are divisions set up to service particular types of clients or customers

CENTRALIZATION AND DECENTRALIZATION

CENTRALIZATION is the degree to which decision making takes place at upper levels of the organization. (1) Environment is stable. (2) Lower-level managers are not as capable or experienced. (3) Decisions...