Specialization

Specialization is a method of production where a business or area

focuses on the production of a limited scope of products or services in
order to gain greater degrees of productive efficiency within the
entire system of businesses or areas.
Economic theory defines specialization as the production of one or just
a few goods and services. In other words, it refers to how an
individual, organization, state or country focuses available resources.
Instead of attempting to produce and sell many different products,
entities use overstock to trade for what they may lack. The system of
international trade uses the concept of specialization.
Under specialization, economic actors concentrate their skills on tasks
at which they are the most skilled. A particular process b is divided
into a large number of smaller tasks performed repetitively by
individuals assigned complete a limited number of those tasks.
Departmentation
The process of grouping of activities into units for the purpose of
administration is called departmentation. It can be defined "as the
process by which activities or functions of enterprise are grouped
homogeneously into different groups."These administrative units are
called divisions, units or departments.
Departmentation is a means of dividing the large functional
organisation into smaller, flexible administrative units. It makes
grouping of activities into units and sub-units created through
departmentation which are known as department, division, section,
branch etc. The process of departmentation takes place at all levels in
the organisation.
Organizational structure
Organizational structure determines how
the roles, power and responsibilities are assigned, controlled, and
coordinated, and how information flows between the different levels
of management. It defines how activities such as task allocation,
coordination and supervision are directed towards the achievement of
organizational aims. It can also be considered as the viewing glass or
perspective through which individuals see their organization and its
environment.
Organizations are a variant of clustered entities. An organization can
be structured in many different ways, depending on their objectives.
The structure of an organization will determine the modes in which it
operates and performs.
An organizational structure is the outline of a companys framework
and guidelines for managing business operations. Small business owners
are usually responsible for creating their companies' organizational
structure, which is usually an extension of the owners personality,
management style and characteristics. Two types of organizational
structures are found in the business environment: centralized and
decentralized. Each structure offers advantages and disadvantages for
business owners.
Centralized organizational structures
Centralized organizational structures rely on one individual to make
decisions and provide direction for the company. Small businesses
often use this structure since the owner is responsible for the
companys business operations. Centralized organizational structures
depend on one individual to make decisions and offer direction for the
company. Minute businesses frequently use this structure since the
owner is accountable for the company's business functions.
Centralization is the systematic and consistent reservation of
authority at central points in the organization.
Decentralized organizational structures
Decentralized organizational structures often have several individuals
responsible for making business decisions and running the business.
Decentralized organizations rely on a team environment at different
levels in the business. Individuals at each level in the business may have
some autonomy to make business decisions. A decentralized
organizational structure is a system of administration whereby the
organization is split into smaller independent units. The units can
conduct their administrative activities independently and may only
consult the headquarters on major issues. It is the most effective
organizational structure used by big firms. Decentralization is the
delegation of authority at all levels of management and in all of the
organization.
Need for Departmentation
The need for departmentation arises on account of specialization of
work and the limitation on the number of subordinates that can be
directly controlled by a superior. The size of the organization can still
be expanded if its activities and personnel are grouped into various
departments. Besides, departmentation increases the efficiency of
organization in the following ways.
1. Specialization:
In specialization, a person focuses his attention on a specialized piece
of work and attains mastery over it. Thus, specialization makes the
organizations operation more efficient.
2. Fixation of Responsibility:
The responsibility of the work can be precisely and accurately fixed
with the help of departmentation.
3. Facilitates appraisal:
The performance appraisal of managers is greatly facilitated, since
they perform specified jobs.
4. Feeling of autonomy:
Departmentation provides independent charge to managers. This
feeling gives them satisfaction and in turn increases their
responsibilities and efficiency.
5. Development of Managers:
Departmentation helps in the development of managers because of
their focus on some specific problems and prescribed roles.

Production Department
The production department is responsible for converting inputs into
outputs through the stages of production processes. The Production
Manager is responsible for making sure that raw materials are provided
and made into finished goods effectively. He or she must make sure
that work is carried out smoothly, and must supervise procedures for
making work more efficient and more enjoyable. Coordinating with the
finance department, they obtain discounts, verify receipts, arrange for
payments, manage logistics and handle surplus effectively.
There are five production sub-functions
Production and planning.
They will set the standards and targets at each stage of the
production process. The quantity and quality of products coming off a
production line will be closely monitored.
Purchasing department
This department will provide the materials, components and equipment
required. An essential part of this responsibility is to ensure that
stocks arrive on time and are of good quality
The stores department
The stores department is responsible for stocking all the necessary
tools, raw materials and equipment required to service the
manufacturing process.
The design and technical support department
They are responsible for the design and testing of new product
processes and product types, together with the development of
prototypes through to the final product.
The works department
This department is concerned with the manufacture of products. This
will include the maintenance of the production line and other necessary
repairs. The works department may also have responsibility for quality
control and inspection.
Human resource Department
The role of Human resource department is in charge of recruiting,
training, and the dismissal of employees in an organisation.
Recruitment and selection
-Training programmes
Training programs are held by the HRD to improve the employees skills,
as well as to motivate them.
-There are three main types of training :
1. Induction training
2. On-the- job training
3. Off-the-job training
Manpower Planning
-The HR department needs to think ahead and establish
the number and skills of the workforce required by the business in the
future. Failure to do this could lead to too few or too many staff or
staff with inappropriate needs.
Dismissal and Redundancy (retrenchment)
-Dismissal is where a worker is told to leave their job due to
unsatisfactory work or behaviour.
-Redundancy is when the business needs to reduce the number of
employees either because it is closing down a branch or needs to
reduce costs due to falling profits. It may also be due to technological
improvements, and the workers are no longer needed.

Marketing department
A marketing department serves as a beacon for a company, guiding it
on which product, pricing, promotional and distribution strategies to
use. Professionals employed in this department are usually highly
creative and have many duties. Some gather input from current
consumers, while others disseminate information to other departments
and businesses. Whatever the case, a marketing department's duties
are almost always tied to increasing an organization's sales and profits
and maximizing shareholder earnings.
These are the main section of the market departments:
Sales department
is responsible for the sales and distribution of the products to the
different regions.
Research Department
is responsible for market research and testing new products to make
sure that they are suitable to be sold.
Promotion department
decides on the type of promotion method for the products, arranges
advertisements and the advertising media used.
Distribution department
transports the products to the market.
Customer Feedback
Creating Promotional Materials and Ads
Gathering Competitive Intelligence
Establishing Prices

Finance Department
Book keeping procedures
Keeping records of the purchases and sales made by a business as well
as capital spending.
Preparing Final Accounts
Profit and loss account and Balance Sheets
Providing management information
Managers require ongoing financial information to enable them to make
better decisions.
Management of wages
The wages section of the finance department will be responsible for
calculating the wages and salaries of employees and organising the
collection of income tax and national insurance for the Inland Revenue.
Raising Finance
its also responsible for the technical details of how a business raises
finance e.g. through loans, and the repayment of interest on that
finance. In addition it will supervise the payment of dividends to
shareholders.
Purchasing and stores department

Purchasing departments procure the resources required to run
a business. They negotiate prices and terms advantageous to the
company to maintain a continuous supply. By evaluating, selecting and
managing suppliers, the purchasing department enables the rest of the
company to run smoothly.
Reporting and Accountability
The procurement department reports to the top company executive.
Responsibilities include buying raw materials for all departmental
development and production activities. Purchasing personnel also
manage facilities and construction, contingent workforce personnel,
health care benefits and travel expenses for their companies. They
work with senior executives to develop long-term strategic goals.
Automation
Purchasing departments manage the software applications and tools
required to reduce operating costs and automate the procurement and
supplier management processes. Buyers, suppliers and business
partners use these systems to plan, execute and fulfill orders of both
direct and indirect procurement.
Benchmarking
Procurement professionals benchmark the supplier performance to
ensure the spending meets the company's need to maintain a
competitive advantage. They use resources from professional
organizations, follow recommended best practices; ensuring that the
logistics and inventory functions work cost-effectively and to
accomplish this, it creates cross-functional teams to discuss major
expenditures.
Ethics
The purchasing department maintains a code of ethics to govern
business activities. In addition to maximizing the value of any
expenditure, it sets standards for ethical behavior, such as declining
personal gifts or favors, as well as adhering to local, state and federal
statutes pertaining to conducting business fairly and without
misrepresentation.

General Administration Department
Provides over-all direction in the formulation and implementation of
office policies and programs regarding budgetary, financial,
administrative, legal, human resource and other management support
services;
Coordinates with NSO Departments, Regional Offices and other
organic units of the agency on matters related to the implementation
of the programs and projects of the Office;
Monitors the implementation of the work plan and activities of the
divisions in the department;
Monitors the implementation of decentralized budgetary, financial,
human resource, management and administrative policies;
Coordinates with various government agencies for the adoption and
implementation of existing budgetary, financial, human resource and
administrative functions;
Provides consultative, advisory support services and technical
assistance to all organic units of the agency relating to general
administration functions;
Develops and maintains the operating standards and techniques in
coordination with the other organic units in the department in support
of the mission and mandates of the agency;
Prepares and implements organizational development programs for the
overall improvement of the agency;
Implements personnel career development programs and conducts in-
service training for technical and non-technical personnel;
Performs other functions and duties as may be assigned from time to
time.
Legal department
The legal department of a business handles legal issues that may come
up in the course of business, ranging from drafting waiver forms for
employees to handling lawsuits from angry customers. Many large
companies have this type of department; smaller companies may choose
to keep a lawyer or a staff of lawyers on retainer, ensuring that they
have quick access to legal knowledge when they need it.
Members of the legal department are trained and qualified lawyers,
along with a support staff of legal assistants and other law
professionals. The department focuses only on tasks that require a
trained lawyer; and may overlook unimportant issues.
One of the most important roles for employees in this department is as
legal advisers. Before marketing a new product, staff members will
discuss it with the lawyers. Executives may talk with the staff about
legal issues ranging from discrimination in hiring practices to
sexual harassment. The department also offers training and assistance
to ensure that the company and its employees are kept up to date on
workplace law.
The legal department will also become involved in customer complaints,
ensuring that the responses to these complaints are drafted in a
professional style that also covers the company's bases legally. In the
event that a company is sued, either from within or from the outside,
the department will represent the company in the suit.
In multi-national companies, the legal department can be the size of a
large law firm. The lawyers come from different nations and have
different training backgrounds, ensuring that every aspect of the
company's business is covered. The staff members also work together
on deals, using their years of experience to vet proposals and
documents, ensuring that the company is getting the best legal
representation and advice possible.