Class 12:(27.02.2009) Principles of Organizing

Principles of Organizing

Principles of organizing proposed by E F L Brench provides a set of guidelines or points to be considered during the process of organizing. They are

  • Objectives
  • Specialization
  • Span of control
  • Exception
  • Scalar Principle
  • Unity of Command
  • Delegation
  • Responsibility
  • Authority
  • Responsibility
  • Flexibility

Departmentalization

Departmentalization is the process of horizontally segmenting a group of activities into a unit or division within an organization. The following are some of the factors that can be used for departmentalization

  • Functions - in this an organization is divided into different departments based on the function carried out. Example are production deprtment, Finance department etc
  • Product- based on products - For example Hindustan Lever has different departments based on different products - detergents, Soaps, Chemical, Toileters , Johnson & Johnson has divisions- Children products, Surgicals, Microsoft has different products such as Operating Systems, Office products, databases
  • Customers - in this category customer base is used as the basis for departmentalization such as Militarty customer, Civilian customers, Commerical customers A bank may divide it customers as business customers and individual customers
  • Territory or region or Time - such as Railways, Indian Airline or Air India

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