Topics: Fast food, Customer, Cost accounting Pages: 19 (5003 words) Published: October 21, 2013
Departmentalization and Allocation of Factory Overheads

Study center: Uni tech (AIOU) Islamabad


I hereby thank my honorable teachers who taught us patiently and encouraged to complete this scenario of 2nd assignment of 2nd semester of MBA (HRM).To sum up this hard work at the university. I dedicate this to my parents who wholeheartedly supported me financially, morally, physically and psychologically having achieved this prestigious degree from the Allama Iqbal Open University.


I had a very good educational environment at the Uni Tech a study center assigned for MBA (HRM) from Allama Iqbal Open University which is progressing day and night, because of having qualified teaching staff of university and their devotion to student’s problems and favorably listening and amicably settling the issues. Moreover the policy towards students keeping in view the prevailing economic situation of the country, the university charges very nominal fees which even students belonging to middle class can afford. This factor is much appreciated and I hope they will continue doing so. At the end I must say that I have received every possible help in compiling my 2nd assignment report from my honorable teachers and fellow students. I am particularly thankful to Sir Waqas who guided and encouraged me at every stage to complete 2nd assignment report of MBA (HRM) 2nd semester.

Executive Summary
Departmentalization refers to the process of grouping task activities into departments. The division of labor or degree of departmentalization is driven by the need for specialization whether by process or purpose within an organization. The most common way of process departmentalization is the division of the firm into business functions, such as purchasing, manufacturing, sales, accounting, etc. When taking a closer look at the three ways of departmentalization by purpose–product, customer, and location–we note that there are some specific advantages related to it. That said, there are some advantages to departmentalization. Firstly, departmentalization as a form of self-containment tends to improve the ability for the coordination of tasks within the department. Secondly, departmentalization allows for a clearer focus of the purpose for the group (i.e., serving a specific product, customer, or market). From a process prospective, a high degree of specialization can be very efficient in some instances and enable the development of highly centralized control functions. Departmentalization at the functional level can take advantage of employees’ specialization. In this regard, a high degree of specialization can enhance skill proficiency and professional competence intra-departmentally. Employees with similar training, education, skills, or equipment work together and under a supervisor responsible for that department's activities. Because one supervisor typically oversees a major area of activity, functional departmentalization also facilitates coordination. For instance, in a larger retail operation, one marketing department supervisor would control and coordinate the work of buyers, merchandisers, and the sales force so that information and activities of each function would be more efficient and productive.



Executive Summaryiii
Table Of Contentiv
Introduction to Departmentalization
1.1 What is Departmentalization?( Definition)1
1.2 Meaning of Departmentalization1
1.3 Departmentalization1
1.4 Bases Methods Types of Departmentalization3
1.4.1 Functional departmentalization3
1.4.2 Process departmentalization4
1.4.3 Product departmentalization4

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http://www.citeman.com/942-departmentalization.html. (n.d.). http://www.citeman.com/942-departmentalization.html.
http://www.managementaccountancy.com/2009/05/overhead-cost-allocation/. (n.d.). http://www.managementaccountancy.com/2009/05/overhead-cost-allocation/.
http://www.wisegeek.com/what-is-departmentalization.htm. (n.d.). http://www.wisegeek.com/what-is-departmentalization.htm.
KFC. (n.d.). KFC. http://www.scribd.com/doc/25477240/Kentucky-Fried-Chicken .
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