Types of Departmentation I) Departmentation by functions/Functional department II) Departmenation by product or product wise department III) Departmentation by territory/Geography IV) Departmentation by customers V) Departmentation by time VI) Departmentation by process VII) Departmentation by numbers
The process of grouping various activities into separate units is called departmentation. Departmentation can be made on the basis of functions or product handled. When the departmentation is done on the basis of functions, it is called functional departmentation. Under this all work of same kind are performed in a particular department. The examples of functional basis departmentation is purchase office, sales office, production department, mailing department and accounts department. When an organisation opens departments on the basis of products, it is called product departmentation. The examples of product departmentation are leather division office and plastic division.
Departmentation by simple numbers
no
There are a number of types of departmentation. These include by time, by location or place, by the functions, or by the process.
The word departmentation generally refers to the process of grouping jobs into different logical units. It is the process of categoring an organisation based on departments to facilitate planning and control. the most common method of departmentation is separating different units as per their function. Most organisations mostly consist of the following departments: * sales and marketing * production * finance * human resources * materials and logistics To accomplish organisational goals, job tasks can be sub divided in a variety of ways. There is no one best way of departmentation that is applicable to all organisation. It differs from situation to situation. It is the method of grouping jobs and resources into department., Most organisation use a combination of the following types of departmentation: * departmentation by simple numbers * departmentation by function * departmentation by geography * departmentation by product..
Departmentation by theory encourages focus on customer needs but requires managers and staffs expert in customers' problems.
Territorial departmentation usually occurs within organizations and is used by insurance companies. It groups people with activities due to their physical location.
advantages and disadvantages of associated with each departmentation
Departmentation is a very impoartant process. Koontz and O'Donnel defines departmentation as, " a process of dividing the large monolithic functional organization into smaller and flexible administrative units." The success of the enterprise can be understood on the basisi of these aspects including: 1. Developement of Managerial skills 2. Fixation of Responsibilities. 3. Manageable units establishments. 4. Budgeting faciliated.
1. Functional 2. Productwise 3. Territorial 4. Customerwise 5. Process 6. Composite
one advantage of departmentalization is increased efficiency on managers and employees are able to concentrate their efforts on particular areas of expertise.