Tag: Departmental

Departmental Organization: Meaning, Definition, Characteristics
What does mean Departmental Organization? It is one of the conventional and most basic forms of public endeavors predominant in particular nations. These organizations completely organize, oversaw, and supported by the public authority. Under this form of organization, a public venture works as an undeniable service or the primary sub-division of an administration office. This article explains the Departmental Organization and their topics Meaning, Definition, and Characteristics or Features, Merits or Advantages, and Demerits or Disadvantages. All exercises and working of the endeavor heavily influence by a pastor who reports straightforwardly to the parliament.

Here is the article of Departmental Organization: Meaning, Definition, and Characteristics or Features, Merits or Advantages, and Demerits or Disadvantages.

The capable clergyman at that point assigns his authority descending at different degrees of the board for viable working and accomplishment of characterized objectives. The controlling service chooses each arrangement matter and other key choices of departmental organizations. Notwithstanding, the overall arrangements for these kinds of the endeavor outline by the parliament. Different people working in these sorts of endeavors are government representatives as they straightforwardly effect by the public authority. These endeavors additionally order into state government and local government. Indian Railways being overseen by the rail line service and Post and Telegraph administrations run by the service of correspondence are probably the best instances of departmental organization.

Top 6 Characteristics of Departmental Organization:

A departmental organization has the accompanying top 6 characteristics:
1. The administration of such ventures is in the hands of the public authority. The venture oversees and constrains by the government workers of the division.
2. The depository funds such as a venture and its receipts likewise pay into the public authority depository.
3. It appreciates legitimate resistance and government endorsement is vital for suing the endeavors.
4. Its records additionally review similarly to some other government division.
5. Enlistments to these divisions make on similar standards and practices similarly just like the case with the public authority offices.
6. Similar states of administration that apply to other government divisions apply to the staff working in this kind of big business.
Features or highlights of Departmental Organization:

Different highlights or features of the departmental organization territories examined in focuses underneath:
- The simplicity of formation: It is a serious simpler assignment of building up organizations under departmental endeavors in contrast with private organizations. Departmental organizations don’t confront any severe enlistment formalities as they are set up and organized by the decision legislature of the country.
- Under government control: Management of departmental endeavors straightforwardly oversees and control by the public authority by designating a priest to this undertaking. The pastor is straightforwardly answerable for the tasks of departmental endeavor and reports to parliament.
- Not a different substance: Departmental endeavor isn’t set up as a free legitimate element unmistakable from Government. They detest any different legitimate powers yet works as a piece of Government.
- Review and Accounting: These endeavors are liable to review and bookkeeping formalities similarly as material to different divisions of government. Departmental Accounting; All records appropriately keep up and conveniently examined for staying away from any error, extortion, and inconsistencies.
Other Features:
- Not subject to public borrow: Departmental organizations don’t have any choice of raising assets from people in general or any private body. Also, The spending allotment authorized by the Indian parliament is the solitary wellspring of money accessible to these endeavors for procuring any extra assets. The public authority somewhat or completely own all such kind of endeavors.
- Government financing: It finances by the depository of the public authority. Each movement of a departmental organization finances through government reserves. Additionally, all incomes of these endeavors pay into the depository.
- Extreme duty with Minister: A definitive obligation of dealing with the exercises of the departmental organization lies with the mindful priest. Also, This clergyman delegate by the public authority in front of the organization; and, is mindful of the state lawmaking body or Indian parliament for all the issues of the departmental endeavor. Pastor, thus, designates its authority downwards to particular degrees of the board for compelling working.
Top 5 Merits of Departmental Organization:

Following are the fundamental 5 merits of departmental endeavors:
1. These endeavors are totally under government control and are related to one of the public authority offices. The public authority controls their work deliberately and appropriately to accomplish the goals.
2. Departmental organizations can keep up the mystery in their work as it is fundamental for endeavors like a guard.
3. The departmental organization guarantees the greatest level of parliamentary control of the venture.
4. A departmental form of organization is vital for public utility administrations and vital enterprises. Key enterprises like protection and nuclear force oversee in a superior manner under government divisions.
5. The danger of abuse of public cash limits in the departmental organization; because of a severe financial plan, bookkeeping, and review controls.
Benefits or Advantages of Departmental Organization:

Various advantages given by departmental organization can surely know from the focuses given beneath:
- An instrument for social change: Departmental endeavors are key devices accessible to the public authority for advancing financial and monetary equity inside the country. These ventures utilize by the public authority as an instrument for bringing social change. For instance, an administration by setting up a mail center, telecom, and broadcasting software engineers in faraway provincial zones can do social, monetary, and scholarly improvement of individuals dwelling there.
- Direct control of government: Such endeavors work under the immediate control of the public authority and connect to one of the branches of government. A priest delegate at the top who is capable to parliament or state governing body for all working of these kinds of endeavors. All approaches and choices are taken by the public authority; and, they can’t make any choice on their own which may hurt any gathering of people in general.
- The mystery kept up: Another important advantage of the departmental endeavor is that they can keep up the mystery of important approach matters. Also, The public authority has full power over such organizations; and, can undoubtedly retain any delicate information like a safeguard for the public interest.
Other Advantages:
- Dodge abuse of government depository: Departmental endeavors are dependent upon exacting planning, bookkeeping, and reviewing like some other government organization. Also, They are under exacting control and all representatives working in these endeavors are responsible which dodges any abuse of public assets.
- Expense on general society is lesser: This sort of embraced brings about less weight of assessment on the overall population as all incomes from these divisions straightforwardly go into the depository of government. Each action finances by the public authority and additionally, all income pays to the public authority.
- Adds to government pay: Departmental endeavor makes a proficient commitment to the depository of government accordingly raising their general income. Any excess in these divisions moves to the public authority which builds their pay. Additionally, any lack likewise meets by the public authority.
- Monitored by rule and guidelines of Ministry: These organizations work heavily influenced by a clergyman selected as ahead by the public authority. Each authoritative official working inside the departmental endeavor works according to the course of the delegated serve. Also, The priest reports straightforwardly to parliament and state assembly about the situation of departmental endeavors.
Top 5 Demerits of Departmental Organization:

A departmental endeavor experiences the accompanying demerits or limits:
1. Public endeavors should have impressive self-sufficiency and activity. Under this framework, there is over the top pastoral control which murders agreement; and, the actual reason for making such organizations basically crush.
2. This kind of organization is essentially run on government lines and as such acquires all the deformities of an administration organization including those of deferrals and running into the groove of red-tapism and officialdom.
3. Under this framework, all strategies chose at the pastoral level and the forces incorporate at the more elevated level. It antagonistically influences the effectiveness of the worries.
4. Departmental organizations can’t take long haul monetary choices since it relies on budgetary appointments of the public authority.
5. The executives of such undertakings are in the hands of government workers. There is a shortage of skilled people who have business experience. Government employees are not appropriate for running business organizations.
Disadvantages or limitations of Departmental organization:

Departmental organization notwithstanding benefits additionally has a few disadvantages which are summed up underneath:
- Impact of Bureaucracy: Departmental organization needs independence and activity as are dependent upon unreasonable administrative noise and organization. Endorsement of government needs for taking each choice which postpones the entire working cycle. Along these lines, the departmental endeavor needs adaptability in maintaining a business as on account of another kind of big business.
- Unnecessary parliamentary control: It works under the inordinate control of parliament which makes challenges in its everyday working. Every single key arrangement and rules outline by parliament; and, actualized using a clergyman working at the top of these organizations.
- Monetary reliance: Departmental endeavors are monetarily needy upon the spending designations of the public authority. Also, They can’t freely any long-range venture choices that may produce income for these organizations. All the incomes produced can’t use for financing business however should save into the public depository.
Other Disadvantages:
- The easygoing way to deal with work: The officials working in the departmental endeavors build up an easygoing way to deal with work as they are liable to visit moves. These organizations face a great deal of operational failure because of the easygoing work mentality of representatives.
- Absence of polished methodology: Departmental endeavors faces a ton of non-polished methodology as government employees utilized here don’t have a significant expert administration range of abilities. These chiefs because of the dread of analysis from parliament or clergyman can’t afford to be an imaginative one.
- Political impact: A departmental organization faces an overabundance of political impact in its working. Also, The force balance between the decision party and the resistance impacts its destiny of performing proficiently. Accordingly, it turns out to be more a political organization as opposed to a business or financial organization.
Departmental Organization: Meaning, Definition, and Characteristics; Image from Pixabay.
January 28, 2021
Departmental Stores: Meaning, Definition, Features, and Characteristics
What does mean Departmental Stores? A departmental store is a large retail trading organization. It has several departments, which are classified and organized accordingly. Departments make as per different types of goods to sell. A departmental store may be described as a large retail organization having the number of departments in the same building under centralized control. Each department deals in a particular type of trade and is a complete unit in it. So, what is the topic we are going to discuss; Departmental Stores: Meaning, Definition, Features, and Characteristics.

Here are explain What is Departmental Stores? with Meaning, Definition, Features, and their Characteristics

All departments are run under the same ownership, management, and control. Each department is an independent unit as far as a sale of any specific product and its varieties are concerned. The main aim of every departmental store is to provide and fulfill all requirements of their customers in one place along with comforts and facilities which a small scale retailer cannot provide. Here all goods which are available under one roof sell on a cash basis.

For example, individual departments establish for selling packed food goods, groceries, garments, stationery, cutlery, cosmetics, medicines, computes, sports, furniture, etc., so that consumers can purchase all basic household requirements under one roof. It provides them maximum shopping convenience and therefore, also called ‘Universal Providers‘ or ‘One spot shopping’. The concept of a departmental store first originated in France.

Definition of Departmental Stores:

Some of the important definitions of a departmental store are enumerated as under:

E.V. Cundiff and K.R. Still,

“A departmental store is a large retailing business unit which handles a wide variety of shopping and specialty goods and is organized into the separate department for purposes of promotion, service, and control.”

Clark defines it as,

“That type of retail institution which handles a wide variety of merchandise under one roof with the merchandise grouped into well-defined departments which are centrally controlled.” Thus, a departmental store is an organization of several retail stores carried on in one building and under United controlled management.

In the words of Killough,

“A departmental store is a retailing institution that deals in many lines of merchandise, including women’s wear and house furnishing, each line being separated or departmentalized from the other.”

From the above-mentioned definitions, it is clear that a departmental store offers the widest possible range of goods and services in one place. It aims at providing convenience in shopping and can be turned like a “universal provider”. Also, the basic objective of a departmental store is to provide a large variety of merchandise ‘from a pin to an airplane’ in one place. It also aims at providing quality goods and services to the customers and acts as a universal supplier.

Origin:

The departmental stores originated in the European countries during the 19th century. The first departmental store known as BON MARCHE was established in France in the year 1852. Two more departmental stores viz; the LOUVRE and the PRINTEMPS were established in 1855 and 1856 respectively. Gradually the departmental stores started getting immense popularity. In England, departmental stores came into existence in 1840 and the U.S.A. in the middle of the nineteenth century.

Features of Departmental Stores:

Following are the main features or characteristics of a Departmental Stores:

1] The store is located in the center of a city:

The departmental store usually locates in the central area of a large city. Location and premises are the two most important aspects of it. Also, they generally situate at that place where a maximum number of people come for shopping.

2] Offers a wide variety of goods:

A departmental store not only offers a wide variety of goods and but also provides a huge range of designs, colors, and styles that suit the individual demands of consumers.

3] Shopping under one roof:

The main idea behind a departmental store is to supply all basic requirements under one roof. It acts as a supplier of a large variety of quality goods and services. Thus, the departmental store provides maximum shopping convenience to its customers.

4] They Offer quality goods and services:

The motto of every departmental store is to provide high-quality goods and render professional services to its customers. It always keeps a huge stock of fresh goods which highlight the latest fashions and trends followed by different manufacturers.

5] They have single management:

Various sections of the departmental store operate independently. However, they all are under the direct control of single management. Buying, supervision, accounting, advertising, and external communications are handled directly by the central management of a departmental store.

6] Always attracts customers:

Departmental stores have attractive interior decoration and window displays. Also, they spend heavily on sales promotion. This is done through advertising, discounts, special seasonal offers, gift schemes, festival offers, etc.

7] Fulfill the needs of most families:

The departmental store mainly satisfies the needs of the rich and a higher middle-class group of society. More attention gives quality, choice, convenience, and service rendered to the customer.

8] Renders good customer service:

Departmental stores offer efficient customer services such as inspection of goods, actual demonstration of goods, convenient packages, provision for refreshment, reading rooms, home delivery, parking facility, etc.

9] Operates by appointing experts:

The departmental store conducts its business on a very large scale and generates good profit revenues. It can easily afford to appoint experts for purchasing, advertising, recruitment, supervision, etc., and keeps operating smoothly.

10] Sells goods only on a cash basis:

A departmental store sells goods only on a cash basis. Generally, credit facilities do not offer to customers to avoid the risk of bad debts.

11] They have a high operational cost:

Departmental stores have to incur high expenses by way of rent, advertising, provisions of conveniences and facilities to its customers. Thus, the costs of operation are high.

12] Departmental Store diffuses the risk of loss:

The losses made by one department of a departmental store can compensate by profits earned by other departments.

Characteristics of Departmental Stores:

The following Characteristics below are:
- They deal with a different variety of products; say from needle to a car which can purchase in one place.
- Various departments are operating under one roof and each department specializes in a particular type of trade.
- All departments operate under centralized control and management.
- Their operational expenses are very high.
- They undertake extensive advertising to attract more customers.
- They usually situated in the most crowded place and at an important place in the city.
- A large amount of finance needs to start a departmental store.
- These best suite for customers.
- The departmental store offers excellent services to its customers viz.; credit facilities, free home delivery and replacement of disapproved goods, etc.
A department store is a retail establishment offering a wide range of consumer goods in different product categories known as “departments”. In modern major cities, the department store made a dramatic appearance in the middle of the 19th century, and permanently reshaped shopping habits, and the definition of service and luxury.

Today, departments often include the following: clothing, furniture, home appliances, toys, cosmetics, houseware, gardening, toiletries, sporting goods, do it yourself, paint, and hardware. Additionally, other lines of products such as food, books, jewelry, electronics, stationery, photographic equipment, baby products, and products for pets sometimes include. Also, Customers generally check out near the front of the store, although some stores include sales counters within each department. Some stores are one of many within a larger retail chain, while others are independent retailers.

Departmental Stores: Meaning, Definition, Features, and Characteristics. Image credit from #Pixabay.

Departmental Stores in India:

The departmental stores have not become much popular in India. There are only a few important departmental stores in the country even today. ‘White Hair in Bombay and ‘Military Departmental Store’ are examples of such departmental stores in India. The various disadvantages of departmental stores have been responsible for their less popular in India. As well as, they are best suited for the advanced countries where there is no dearth of capital and rich persons.

Departmental stores require a large amount of initial capital investment for their establishment and there is a dearth of capital in India. Moreover, many qualified and efficient persons required for the establishment and running of departmental stores are not available in India. The prices charged by departmental stores are also comparatively higher. Also, the number of rich persons who can afford to go to such departmental stores is very low in India. Hence, departmental stores have not become very popular in India.
December 13, 2018
Departmental Accounting Objectives Methods Advantages
Departmental Accounting and Departmental Accounts both are the same. The main point explains; Meaning, Concept, Objectives, Methods, Advantages, with Principles. Modern life is very mechanical, especially in big cities. The citizens of such cities expect all the goods and services just under a single roof. Such individual accounts will help to evaluate and control the different departments. So, what is the topic we are going to discuss; Departmental Accounting: Meaning, Objectives, Methods, and Advantages…Read in Hindi.

Here explains What is Departmental Accounting? Meaning, Concept, Objectives, Methods, Advantages, with Principles.

What does mean Departmental Accounting? Departmental Accounting refers to maintaining accounts for one or more branches or departments of the company. Revenues and expenses of the department record and report separately. The departmental accounts are then consolidated into accounts of the head office to prepare financial statements of the company.

The departmental stores are the example of large-scale retail selling just under a single roof. Different departments involve in different goods to sell out. To calculate the net result of the whole organization, full-fledged trading, and profit, and loss account are to prepare. But to evaluate individual department, it will be creditworthy to prepare individual trading and profit and loss account.

For example, a textile mill which is having head office and factory. Separate accounts maintain for production facilities and then the final results are sent to the head office which then incorporates by the head office in their accounts. Maintenance of separate accounts for each branch of a bank or financial institution also falls under the category of departmental accounting. The bank then prepares its financial statement after consolidating accounts of all branches.

A departmental accounting system is an accounting information system that records the activities and financial information about the department. Departmental Accounting is a vital one for large prosperous business organizations. It controls wastage & misusing, compensates the employee in terms of profit and commission, compares performance and progress of year to year or department to department or similar type of firm to firm.

Meaning of Departmental Accounting:

Where a big business with diverse trading activities conduct under the same roof the same usually divide into several departments and each department deals with a particular kind of goods or service. For example, a textile merchant may trade in cotton, woolen and jute fabrics. The overall performance for this type of business depends, however, on departmental efficiency.

As a result, it is desirable to maintain accounts in such a manner that the result of each department can be known—together with the result as a whole. The system of accounting follows for this; the purpose knows as Departmental Accounts. This system of accounting helps the proprietors to:
- Compare the results among the different departments together with the previous results thereof,
- Formulate policy to extend or to develop the enterprise in the proper line; and
- Reward the departmental managers based on departmental results.
The Concept of Departmental Accounting:

Departmentalization enables big firms to determine the areas needing special attention to the achievement of overall objectives. The units or departments needing more funds and more attention than others and the one(s) contributing more toward goal attainment could identify with good departmentalization. The purpose is basically to find out the performance and capability of the units or departments to make adjustments for the achievement of the firm’s objectives.

Each unit, department or subsidiary gives the free use of some of the assets of the firm and some responsibilities which can be profit-making, revenue generation or cost control. As expenses incur by the firm on behalf of all its departments, indirect expenses are to apportion to the departments, if each department is to present a financial statement or if the statement is to prepare by the company on a departmental basis.

Departmental accounting is about the preparation of final accounts taking into consideration divisional performance before the overall performance. With that system of accounting, companies that departmentalize can easily conclude as they are very well’ performing units, averagely or moderately performing units. Departmental accounting aims at separating the several activities of a business to compare results and to assist the proprietors/owners in formulating policies.

Objectives of Departmental Accounting:

The main objectives of departmental accounting are:
- To check out an interdepartmental performance.
- To evaluate the performance of the department with the previous period result.
- The gross profit of each department can ascertain.
- Unprofitable departments will reveal.
- The result of operations can use to determine the remuneration of managers of each department.
- The progress of each department can monitor for appropriate actions to take.
- To help the owner formulating the right policy for the future.
- To assist the management in deciding to drop or add a department.
- It helps in determining the commission of the department manager when it links to profit achieved by their department.
- It can help the management in deciding which department should develop more and which should close to maximize the profitability of the whole company.
- To provide detailed information about the entire organization, and.
- To assist management with cost control.
- It also helps in allocating costs to various departments and therefore helps in better control of the cost of the departments of the company.
- For a company that is dealing with multiple products, it is much easier to control and monitor several departments based on the products they sell rather than controlling it as one single business.
Methods and Techniques of Departmental Accounting:

Departmental accounts prepare in such a manner that all desired information is available and departmental profit can correctly make.

Here are two methods advocate viz:
- Where the individual set of books maintains, and.
- Where all departmental accounts maintain columnar- wise collectively.
They explain below;

Where Individual Set of Books Maintain:

Under this method, the accounts of each department independently maintain. The departmental results of all the departments collect and take into consideration to find out the net result of the organization.

Where All Departmental Accounts Maintain Columnar-Wise Collectively:

A Departmental Trading and Profit and Loss Account open for each department in a columnar form together with a separate column for ‘Total’ to ascertain the individual result of the different departments and also as a whole. But the Balance Sheet prepares in a combining form.

And to incorporate the purchase and sale of goods, the subsidiary books and also the nominal accounts into the ledger must rule out with extra columns for each department in arriving at the desired departmental figures to prepare departmental final accounts. If there is a larger volume of cash purchases and cash sales, the Cash Book also must maintain separate columns for cash purchases and cash sales of various departments.

Appropriateness of some of the apportionment methods – key points:
- It can be a very subjective process.
- The best way to apportion costs base on the greatest benefit- i.e. the
  department who gets the greatest benefit from the cost must take the greatest amount of the cost.
- This makes the apportionment process very time consuming and expensive.
- The more appropriate basis may be for depreciation to base on the book value of assets in each department.
- Insurance of the assets based on the book value of the assets.
Advantages of Departmental Accounting:

The most significant advantages of departmental accounts are:
- Individual results of each department can know which helps to compare the performances among all the departments, i.e., the trading results can compare.
- Departmental accounts help to understand or locate the success, failure, rates of profit, etc.
- It helps the management to make a proper plan of action, policies to increase profit after analyzing the results of the operation of various departments.
- Departmental accounting helps us to understand which department should expand further or which one should close down as per the results of the operation.
- It also helps to encourage a healthy competitive spirit among the various departments which, ultimately, helps to increase the profits of the firm as a whole.
- For additions or alterations of various departments, departmental accounts help a lot as it supplies the necessary information.
- As detailed information about the firm is available from departmental accounting the users of accounting information, particularly, the auditors and investors widely benefit.
- Since departmental accounting presents separate departmental results, the Performance, of a successful department encourages the management, employees and increases the motivation of the staff as a whole.
- The percentage of gross profit on sales and stock turnover ratio of each department helps to make a comparative study among all departments.
Departmental Accounting: Meaning, Objectives, Methods, and Advantages. Image credit from #Pixabay.

Principles of Departmental Accounting:

Preparation of final accounts of a departmentalized business requires the following:
- That the gross profit or loss and the net profit or loss of each department determine separately before taking. The totals to the appropriate account or the balance sheet of the business, and.
- That there should be some basis of apportioning gains and expenses to the departments or units of the business. And, that should be done as fair and equitable as possible.
Sometimes control accounts have to resort to determine the creditors’ or debtors’ value to the business. In any case, as the departmental values show. The total figures, for the business as a whole, are, to sum up.
December 12, 2018