Explain what is the basis of differentiation of tasks and activities in you organization an only organization you are familiar with.

Explain what is the basis of differentiation of tasks and activities in you organization an only organization you are familiar with. Suggest three definite improvements in the organization structure, which would enhance its effect even. Briefly describe the organization you are refining to?
Ans: Organization structure refers to the differentiation and integration of activities and authority roles and relationship in the organization. Thus, there are two consideration in organization design problem. Differentiation and integration. Differentiation is defined as like differences in congntive and emotional orientations among managers in different functional departments, and the differences in formal structure among there departments; and Integration as “quality of the state of collaboration that are required to achieve unity of effort buy the environment”.

(1)Differentiation by function: The grouping of activity according to the type of function performed is the most commonly used structure. You would find this not only being widely used in business organization but also in non-commercial organization such as hospitals universities etc.

The functional structure is most suited when an organization is dealing with a single product or service. The activities can easily be segmented into similar, complementary activities such as production, marketing, finance, purchase etc. Depending on the value of the organization and its scope of activities the function is has to perform may differ vastly from those of another organization for instance, are company which undertakes both manufacturing and marketing may have departments engaged in purchase, production, marketing and finance if it is selling a product such as T V or refrigerator it may also have an after-sale service-service departments on the other hand, a company, may have only departments for purchase, manufacturing and finance.

2.Differentiation by product: As a company moves from a sing product or service to manufacturing a wide range of products it may find that the financial structure is no longer effective. This is especially true if the product are very different from each other in terms of the technology, raw material and manufacturing process used and the final product. In such a situation, the company may have then to adopt a structure which revolves around individual products or Productions.

Companies such as Hindustan Lever Richandson Hindustan with its range of vicks products, ueasil crème and soap have struct5ure involving around different products. The extent of differentiation would vary from one company to company end.

The main advantages of using product based organization structure are that it facilities optional utilization of specialized machinery and technological processes, permits graters co-ordination, where specialized customer service is required, and enables product ,managers to be responsible for profit generation of their department. Johnson manufacturers and market a wide range of specialized surgical supereres and accessories as well as a range of products for children Product Based Departmentalization ensures that the two major product lines operate as independent profit decision, since there if almost no commonality in terms of the manufacturing procen, marketing skills and market segments served.

(3) Differentiation by Location: When an organization is departmentalized on the basis of location of different tasks and activities, then the organization is graphically organized.

The biggest advantage of differentiating the functions geographically is that it allows for maximum utilization of local resources and talents(2) as well as speedy decision-making in response to change in local conditions. In fact, where the participation of local people is essential to the success of the organization, as in voluntary and social organizations, a geographic differentiation is Iderl.

(4) Differentiation by Type of Customers: Another kind of possible grouping is by the type of customer served. A Delhi Based Company manufacturing electronic Typewriters and desk top photocopies has organized its sales force on the basis of its two product lines. Its major customer segments were Government Organizations and Private Sector Companies. The Company was not very successful in its marketing efforts. Investigation revealed that the same customer was being visited by two different salesman resulting in unnecessary duplication of effort and time. Moreover, the Government and Private sector organizations each had a very different set of criteria governing their decision to purchase. The sales approach which succeeded in a private sector company could not be similar applied to a Government setup. The company then re-organized its sales force into two teams, one creating to the Government sector and the other to the private sector, with each team having responsibility for the product line with the reorganized structure the company was able to make a dent in the highly competitive market.