Departmentation

After designing individuals job, each job is carefully analysed and the job specifications are laid down to ascertain if the specified task has been performed in accordance with the prescribed norms and specifications of jobs. Thereafter, the jobs are grouped together so that the whole group of jobs is assigned to a single supervisor which is technically known as departmentation. The departmentation is usually done on the basis of (a) functions, (b) territory, (c) product, (d) customer, and (e) project. 

1. Functional departmentation is enforced on the basis of important functions such as production, marketing, personnel and finance. The organisation will benefit from specialisation but it may confront problem when the group of objective is sought to be achieved of members due to fraternity and other considerations of the expense of organisation's objective. 
2. Territorial departmentation seeks to assign jobs according to locations. Sometimes, the territorial managers are required to coordinate the tasks because the managers at the head quarters will find it difficult to do so because of distance and effective supervision and control. 
3. Product departmentation groups organisations according to the products produced by the organisation. The products can be many like sugar, fertilisers, vegetable oil etc. It helps in making a formation of heterogeneous groups. 
4. An organisation can be distinguished according to customers industrial economical or final consumers. Such a departmentation will ultimately lead to heterogeneous grouping of technical and scientific skills. 
5. Project departmentation is followed by such organisations which produce "large and unique" products such as aircrafts, naval ships and the like. If an organisation is assigned with a project of developing a new aircraft, the responsibility is entrusted to the Project Manager. The project will accordingly be provided with the services of the technical experts, engineers and scientists to execute the project. After the completion of the project all of them will go back to their original positions, i.e. permanent assignments. 

Span of Control 

After the formation of the departments, the size of department depends on the number of subordinates which a superior can manage efficiently and effectively. A 'tall' organisation will have a wider span of control, i.e. large number of subordinates under one superior and a 'flat' organisation will have a narrow span employing thereby smaller number of subordinates, under one superior. 

The size "span of control" ultimately depends on the nature of superiors and subordinates, their training, nature of jobs and nature of organisation behaviour and structure. 

Delegation of Authority 

Authority relationship in terms of superior-subordinate relationship is an important element in the organisation. Since specialisation is sought to be achieved by the organisation through division of work, no one could work independently unless there is a system of delegation of authority. By entrusting authority and responsibilities to the subordinates, they may be able to take decisions independently within the framework of delegated authority. As soon as the authority is entrusted to the worker he acquires the right to make use of the resources (men & material) independently for the achievement of the desired objective. The extent to which he has discretion over the use of resources is a measure of authority. 

Thus, delegation is the authorisation to act independently. Manager who delegates authority to subordinates still retain the authority. Decentralisation on the other hand reflects the dispersal of authority to the ultimate level in the organisation. In other words, delegation is said to be the process, whereas, decentralisation is the result of the process.