Case study

Departmentation
Best Food Products Company

Summary
Mr.Srinivasa Raghavan, the chairman of the best Food
Product Industry.
Problem faced by Mr. Raghvan Regadring working of
vice presidents.

Summary
Example of sales vice president
Mr.Raghavan splitting vice president and want to introduce product
wise departmentation.

Summary
Many of the branded food products were produced and used same
factory equipment and same raw materials.
Consequently, Mr.Raghavan came to conclusion that the best thing to
do was to set up six product managers reporting to a product
marketing manager.

Summary
Each product manager responsible for each product.
Mr.Raghavan realised that he could not give these product managers
actual line authority over the various operating departments of the
company.

Summary
He was concerned about this problem but one of his friends on
university faculty for suggestion.
Mr.Raghavan resolves to put the product structure in his organisation
as outlined but he wondered how he could avoid the problem of
confusion in reporting relationships.

Question Answer for

discussion

1. Do you agree with

Mr.Raghavan programme?
Would you have done it
differently?

1. you agree with Mr.Raghavan

programme? Would you have done it
differently?

Yes, we do agree with Mr.Raghavan programme.

We would have done it differently by doing
departmentation by territory :
Large companies that distribute products on a massive
scale, nationally. Decisions regarding product design,
pricing and marketing may left to the discretion of zonal
managers who are close to customers and know their zone
very well and know their customers needs.

1. you agree with Mr.Raghavan

programme? Would you have done it
differently?

Territorial departmentation reduces transport costs.

Territorial departmentation helps local managers to assess
the needs of local customers closely and serve them well.
Economics of localized operations are also available.

1. you agree with Mr.Raghavan

programme? Would you have done it
differently?

Business expansion across various regions is possible.

Each region head can focus attention on a region in an
exclusive manner and gain comfortable experience in
handling

the

independently.

peculiar

problems

of

local

unit

2.Exactly what would you

do to avoid any confusion
in this organisation?

2.Exactly what would you do to

avoid any confusion in this
organisation?
For avoiding any confusion in this organisation we
would advise to do things we have mentioned below:
Performance appraisal :
The performance of people working in department can
be appraise easily against the assigned goals and
targets.
So in this case a chairman Mr.Raghavan can do
performance appraisal of his vice presidents.

2.Exactly what would you do to

avoid any confusion in this
organisation?
Communication and control :
Departmentation
facilitates
communication,
coordination and control and contributes to the
organisational success.
In this case Mr.Raghavan can have a communication
control over his vice presidents

2.Exactly what would you do to

avoid any confusion in this
organisation?
Responsibility :
In responsibility people know what to do and what not
to do and they also know what they are supposed to do
in order to meet targets and deadlines.
When they fail to live up to expectations and go off the
track it is easy to find out where things have gone
wrong.

Conclusion

Thank you