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UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

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2. Grouping <strong>of</strong> Activities<br />

Closely related and similar activities are grouped together to form departments,<br />

divisions, or sections because coordination <strong>of</strong> numerous activities can best be achieved by<br />

grouping them into basic and derivative departments. Grouping may be done on several<br />

bases depending upon the situational requirements. Grouped activities in the form <strong>of</strong><br />

departments, divisions or sections are assigned to various positions. These positions are<br />

occupied by various individuals.<br />

3. Prescribing Authority Relationships<br />

Since organizing process creates various departments and positions therein,<br />

authority relationships have to be prescribed for orderly functioning <strong>of</strong> various<br />

departments. These relationships have to be prescribed for various positions in a<br />

department. Such relationships may be in the form <strong>of</strong> line, staff or functional authority<br />

relationships.<br />

Departmentation<br />

The first task in designing an organization structure is the identification <strong>of</strong><br />

activities and grouping them on the basis <strong>of</strong> some similarity. The process <strong>of</strong> grouping the<br />

activities is known as departmentation. The need for departmentation arises because <strong>of</strong><br />

specialization <strong>of</strong> work and the limitations on the number <strong>of</strong> subordinates that can be<br />

directly controlled by a supervisor. Different bases for grouping are, functions, products,<br />

production processes, geographical territories, customer segments etc. Following are the<br />

factors that are to be considered in making departmentation:<br />

1. Specialization<br />

The basis <strong>of</strong> departmentation should reflect the specialization in performing the<br />

work. If the organization structure reflects well, the division <strong>of</strong> work in the organization<br />

through grouping <strong>of</strong> activities in departments, it could efficiently and effectively<br />

contribute to the organization operations.<br />

2. Coordination<br />

The best result can be achieved when all activities are performed in coordinated<br />

way and each activity contributes in the positive way to others. Thus, the basis <strong>of</strong><br />

departmentation should ensure that closely connected operations are put together.

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