Departmentation and Delegation of Management in Agribusiness

Departmentation:

Departmentation and Delegation of Management in Agribusiness have enormous importance. Departmentation stems from the division of work and the need to obtain organization units of manageable size and to utilize managerial capacity. An organization’s formation and design are shaped considerably by the departmentation followed. The following are the main resources of departmentalization:

Departmentation by function
Departmentation by product
Departmentation by territory
Departmentation by Customer
Departmentation by process

Departmentation by function:

Based on roles such as development, marketing, finance, employees, and so on, the organization can be split into divisions. In accordance with the organization’s needs, the functions can further be split into sub-functions.

Departmentation by-product:

When, within the overall structure of the organization, operations associated with each product or group of closely related products are combined into relatively autonomous and integrated units. Such an organization is defined as a department of goods. It enjoys the benefit of advanced product expertise and encourages the coordination of various activities connected with a specific product.

Departmentation by territory:

When the operations of an entity are widely spread geographically, territorial divisions may be formed. These divisions take advantage of the executives’ intimate awareness of the local circumstances.

Departmentation by customer:

When great emphasis is put on servicing various consumer types efficiently, this organizational form is used. For example, full-time day students and part-time night students typically have different demographic profiles and personal needs for graduate business programs at universities. For example, banks can be departmentalized, as demonstrated by the market, such as-

Corporate banking
School banking
Real estate & mortgage loans
Agricultural banking
Ladies banking
Tele-banking etc.

Departmentation by process:

On the basis of commodity or consumer movement, departmentalization by process groups employment. Each approach involves specialized skills and provides a framework for the homogeneous categorization of work activities. A patient preparing for surgery will first perform preliminary medical tests, then go through the admission process, undergo surgery, receive post-operative treatment, be discharged, and maybe receive out-patient care. These programs are each operated by various departments. A clothing product, for instance.

Advantages:

Attain economic advantage
Utilize specialized technologies
Utilize special abilities
Simplifies training

Choosing the Right Type of Departmentation

For all organizations and all circumstances, no single form of departmentalizing is acceptable. If the CEOs understand the different departmental trends and each one’s advantages, drawbacks, and hazards, they should be able to design the organogram most suitably for their specific service. By looking at the circumstances that they encounter, they will decide what is best. The work to be done and the way they should be done, the people involved and the extent of their capacity, the technologies being used, and other environmental factors in the circumstances, both internal and external.

Distributing Authority

Definition of Delegation:

The mechanism by which managers delegate a portion of their overall workload to others.
Delegation is the transfer to a subordinate of formal authority (legitimate power), obligation, and responsibility for the execution of particular activities.

For the successful functioning of any organization, the delegation of authority by managers to workers is important, as no manager can individually achieve or fully supervise all of what happens in an organization.

Authority:

Authority is the power that the company has legitimized.

Delegation of Authority:

An organization’s efficient functioning means that managers have to assign responsibility and authority to workers. Delegating maximizes employee productivity, accelerates decision-making, and can lead to better choices.

Reasons for delegation:

The key reasons for delegation are to allow the manager to accomplish more work. Subordinates help relieve the pressure of the manager by doing a large portion of the work of organizations. In certain cases, a subordinate can have more experience than the manager in solving a specific issue. The subordinate may have had special training in the development of information systems, for instance, or maybe more familiar with a specific product line or geographical area. The delegation also contributes to the subordinate’s growth. Subordinates learn about overall operations and develop their management skills by engaging in decision making and problem-solving.

The advantages of delegation:

When used appropriately, the delegation has some major benefits. The first and most evident is that the more task managers are willing to delegate, the more opportunities they have from higher-level managers to pursue and embrace expanded responsibilities. Managers would therefore strive not only to delegate routine matters but also activities that require thought and initiative. Furthermore, delegation allows workers to recognize responsibility and practice judgment. This not only allows them to be educated but also increases their self-confidence and ability to take action.
Another benefit of delegation is that it also contributes to better decisions, so it is possible the workers closest to “where the action is” would have a clearer view of the truth.

The barrier to delegation:

Some managers are often too disorganized to efficiently delegate tasks, even though they would benefit from doing so clearly.
Insecurity and uncertainty over who is actually accountable for a particular role are other obstacles to delegation.
The concern that their own power is reduced by delegating authority is another important explanation.

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