Souvenir Tobacco Company Limited (Sec-III)

SECTION III

4. Departmentation

    Chapter Objectives

v     To define and describe the departmentation concept.

v     Departmentation in SOUVENIR TOBACCO COMPANY.

v     Overview of the structure, functions, and process of each department.

4.1 Departmentation

The second building block of organization structure is the grouping of jobs according to some logical arrangement. This process is called Departmentation. Departmentation is “the process of dividing up the work horizontally in to logical groups.” The need of Departmentation arises because of the limitation that a manager may not be able to supervise too many subordinates and their functions, and so the problem of expanding organization arises. Departmentation resolves this problem and allow the organization to expand to an indefinite degree. But the fact must be remembered that there is no single rule, which can be applied to divide the activities of all organization. The patterns of Departmentation is used depends upon the strategic goals and objectives of an organization and the situation in which the organization is operating.

4.2 Departmentation Patterns

Since there is no single pattern to departmentalize the activities of an organization, so there may be many different types to departmentalization of activities in an organization. Based on specific requirements of the circumstances and needs of the organization. Some of the departmentalization patterns are listed below.

§         Departmentation by simple numbers.

§         Departmentation by function.

§         Departmentation by time.

§         Departmentation by geography.

§         Departmentation by process and equipments.

§         Departmentation by product.

§         Customers Departmentation.

4.3 Departmentation in SOUVENIR TOBACCO COMPANY

SOUVENIR TOBACCO COMPANY is a national company and its operations are spread over Lahore and Sindh. The company has its head office at Karachi, and the manufacturing unit is at Marium Garhi Mardan. The marium garhi mardan manufacturing unit is known as marium garhi mardan Complex. MGM Complex is involved in the manufacturing of cigarettes and processing of green leaf to be used in cigarettes. Company has its marketing department in Karachi. The activities of the company has been divided into some departments, the details of all the departments of the company is given below.

4.4 Departmentation at Head Office Level

Souvenir tobacco company has its head office in Karachi. The activities of the company at the head office level have been departmentalize in to different functions i.e. production, marketing, finance, human resource. An executive director of the company heads each department. The details of the departments are out of the scope of this report.

At the head office level, souvenir tobacco company has following departments.

§         Production Department

§         Human Resource Department

§         Finance Department

§         Marketing Department

4.5 Departmentation at SOUVENIR TOBACCO COMPANY MARIUM GARHI MARDAN Complex

Souvenir tobacco company is situated in Marium Garhi mardan, N.W.F.P, on the main Road of  mardan swabi. Marium garhi mardan Complex is involved in two main activities i.e. manufacturing of cigarettes and processing of green leaf of tobacco which is used in cigarettes. The activities of MGM Complex have been divided into different departments based on different functions such as finance and accounting, human resource management, green leaf processing, tobacco cutting and reconditioning, cigarettes manufacturing and packing, dispatching cigarettes to sales points, acquisition of local materials and stationary and engineering works.

The activities of souvenir tobacco company mgm Complex have been divided into following departments.

§         Leaf Department

§         Green Leaf Thresher (GLT)

§         Primary Manufacturing Department

§         Secondary Manufacturing Department

§         Material Management Department

§         Engineering Department

§         Quality Control Department

§         Finance Department

§         Human Resource Department

§         Marketing department

Departments can be divided into two categories; Functional and Services. The functional departments are leaf, GLT, PMD, SMD while MMD, Engg, Finance, Human resource and marketing are services departments. Basic function of HRD is to recruit, arranging employees training programs and welfare activities. Finance department audits all the bills and disbursements; it is also involved in leaf buying. MMD deals in shipping of cigarettes, printing, stationary store, wrapping materials and bails. GLT, PMD and SMD constitute Cigarette Factory, different quality measures are taken to have up to mark products. More detail of each department is given separately.

Process Flow Chart of Cig Manufacturing at MGM Complex