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
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There are a number of types of departmentation. These include by time, by location or place, by the functions, or by the process.
Departmentation typically includes functional departmentation (based on functions of an organization), product departmentation (based on specific products or product lines), geographical departmentation (based on different regions), process departmentation (based on specific processes involved in the organization), and customer departmentation (based on different types of customers). Each component helps to divide and organize the organizational structure based on different criteria.
Departmentation is the process of dividing an organization into different units or departments based on common tasks, functions, products, customers, or geography. The major types of departmentation include functional, divisional, matrix, and team-based structures. Functional departmentation organizes departments based on specialized functions such as marketing or finance, while divisional departmentation groups departments based on products, markets, or geographical regions. Matrix departmentation involves employees reporting to both functional and project managers, and team-based departmentation creates departments based on project teams that cut across traditional functional boundaries.
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..
Functional departmentation involves grouping employees based on the functions they perform, such as marketing, finance, or operations. Product departmentation involves organizing employees by the products or services they work on, creating specialized teams dedicated to specific product lines or offerings. Both types of departmentation can help streamline communication, improve coordination, and enhance expertise within an organization.
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 theory encourages focus on customer needs but requires managers and staffs expert in customers' problems.
Functional departmentation is useful only at the lowest level of organization, where tasks are more specialized and routine. This type of departmentation groups employees based on their specific skills and expertise, allowing for efficient coordination of similar tasks. At higher levels of the organization, more complex forms of departmentation may be needed to align resources with strategic goals.
Territorial departmentation usually occurs within organizations and is used by insurance companies. It groups people with activities due to their physical location.
Departmentation helps in organizing tasks based on specialization, improves coordination within departments, facilitates better communication, and enhances efficiency in managing workflow and resources.
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.