Advantages of Departmentalization by Process
- Departmentalization by process creates job specifications as departments are prepared according to process.
- Department managers become more loyal as the process responsibility is fixed.
- Departments become dependent. So, communication and coordination become more effective.
- This method is a flexible method of departmentation.
What is departmentalization?
Departmentalization refers to the formal structure of the organization. Departmentalization is the efficient and effective grouping of jobs into meaningful work units to coordinate numerous jobs all for the speedy accomplishment of the organization’s objectives.
What is meant by process departmentation?
Based on the process, the activities are grouped. The process departmentation is applicable in those organizations where production activities need some distinct process. Especially, this method is used in large scale manufacturing concerns such as textile, cement, chemical, medicine, etc.
What is the best way of departmentalizing an organization?
No one way of departmentalizing is suitable for all organizations and all situations. If the CEOs know the various departmentalization patters and the advantages, disadvantages, and dangers of each, they should be able to design the organogram most suitable for their particular operation.
What is matrix departmentalization in project management?
Matrix departmentalization Matrix departmentalization attempts to combine functional and task force (project) departmentalization designs to improve the synchronization of multiple components for a single activity (i.e., a moon launch), to improve the economics of scale, and to better serve the customer and company. 5. Planning Task Force
What are the five types of departmentalization?
The primary forms of departmentalization are by function, process, product, market, customer, geographic area, and sometimes matrix (also called project organization).
What are the advantages of process departmentalization?
Advantages of DepartmentalizationSpecialization. Each department performs a different function. ... Growth and expansion. An organization that is suitably divided into different departments can easily grow and expand.Better customer service. ... Performance appraisal. ... Management development. ... Optimum utilization of resources.17-Mar-2021
What is departmentalization with example?
In functional departmentalization, an organization is organized into departments based upon the respective functions each performs for the organization. For example, a manufacturing company may create a production department, sales and marketing department, an accounting department, and a human resources department.28-Apr-2015
Is a disadvantage of process departmentalization?
Disadvantages of Departmentalization by the process Co-ordination of departments is difficult, Responsibility for profit is at the top, Is unsuitable for developing general managers.
What is departmentalization PDF?
Departmentalization is the process of breaking down an enterprise into various departments.
What are the types of departmentalisation?
Popular types of departmentalizationFunctional departmentalization - Grouping activities by functions performed. ... Product departmentalization - Grouping activities by product line. ... Customer departmentalization - Grouping activities on the basis of common customers or types of customers.More items...
What is Departmentation by product?
Product departmentalization is an organizational strategy that divides employees into teams to work on all aspects of a particular project or product line. Every product line has an individual department or team, and department members all specialize in different aspects of product development and distribution.19-Aug-2021
What is meant by departmentalisation?
Definition of departmentation : the process of departmentalizing an enterprise for gaining efficiency and coordination : the grouping of tasks into departments and subdepartments and delegating of authority for accomplishment of the tasks.
What is process departmentalization?
Process Departmentalization is a manner or practice of implementing a process through combining related activities into separate groups or specialized functional areas which are distinct from each other. The general idea here is that separation of the process into groups of smaller activities makes it easier to perform this process by personnel.
Why is departmentalization important?
Departmentalization helps avoid this complexity through dividing the process into functional areas, so now every activity can be assigned to a particular department or work group. Prospecting is assigned to marketers; advertizing is assigned to ad agents; customer support is assigned to support personnel; etc.
What is departmentalization?
It is typically used to describe different company areas or discuss the various departments within a company. Departmentalization divides an organization into different departments to improve communication, coordination, and overall productivity. It also helps to clarify who is responsible for what tasks and allows for better delegation of duties.
Types of departmentalization
There are different types of departmentalization, each with its advantages and disadvantages. To make the best decision for your organization, it’s essential to understand the different types of departmentalization and what they entail.
Conclusion
We hope this article has given you a better idea of the different types of departmentalization and how they work. If you found it helpful, please make sure to share it with your friends! And don’t forget to subscribe for more updates from us on every aspect of a business.
Work Specialization
If we first just look into a word ‘specialization, what first come in our mind is that some thing we can do perfectly. A general meaning of specialization can be a complete knowledge about one`s job which he is performing.
Departmentalization
When many individuals are performing common jobs in the organization, they need to coordinate with each other. So on the basis of common jobs, individuals are grouped together. Grouping of individuals are called ‘Departmentalization’. There are five traditional methods for grouping work activities:
Departmentalization by Functions
Functional Departmentalization is grouping activities by functions performed. The function here means the nature of the business. The advantage of this type of departmentalization is obtaining efficiencies from putting similar specialties and people of common skills, knowledge and course together in common units.
Departmentalization by Products
Departments in organization can be made according to the products they produce. Task can be grouped according to the specific products that`s mean placing all the activities related to a product under the one manager. Manager`s are specialist and responsible for everything related to the product line.
Departmentalization by Geographical Regions
It is grouping the activities on the basis of territory. If an organization have its customers geographically dispersed, it can group jobs on the based on geography.
Departmentalization by Process
Grouping activities on the basis of product, services or customers. Process departmentalization allows homogenous activities to be categorize in which each process requires different skills.
Departmentalization by Customers
Grouping activities on the basis of common customers or types of customer. Different departments are made to serve the common type of customers. The assumption is that the customers of each department have common problems or need which is fulfilled by the departments.
What is the method of departmentalization?
Method of Departmentalization: Departmentalization is required in organizations employing a large number of employees. There are several bases for departmentalization each of which is suitable for particular corporate -size, strategies and purposes. They are as follows:
What is departmentalization in business?
Departmentalization is the process by which jobs are grouped and allocated in different departments to different groups according to the need of the organization. In this process jobs are grouped according to some logical arrangement on the basis of functions, products or geographical requirements.
Why is departmentalization important?
The importance of departmentalization can be explained from the following points: It provides the advantages of specialization of work. It helps in fixing the responsibility and consequently (as a result) accountability for the results. It facilitates the development of managers.
What are the disadvantages of working in one department?
Disadvantages: People working in one department care for only one product and regardless of problems of the rest of the organization. One department specialist concentrates only on in his or her department, but not in other departments even if s/he knows the problems of other departments.
Why is complexity important in determining the work schedule for workers?
Large volumes of activities are needed. Complexity may arise in determining the work schedule for workers, because most of the workers prefer to work in day time rather than other shifts . This also leads to de-motivation towards work. Since payment for overtime services is needed, cost of production increases.
Why are different units less concerned about organizational goals?
Since all employees focus on a single unit’s goal, they may be less concerned about the organizational goals. In other words, different units work less on common goals that is more important than their conflicting departmental or individual goals.
How can managers be appraised more objectively?
Managerial performance of the managers can be appraised more objectively through departmentalization. It gives the feeling of autonomy which provides the satisfaction and motivation leading to higher efficiency of operations. It facilitates (make easy) administrative and financial control.
What is departmentalization in business?
Departmentalization means grouping activities and people into departments, making it possible to expand organizations, at least in theory, to an indefinite degree. Departmentalization refers to the formal structure of the organization, composed of various departments and managerial positions and their relationships with each other.
What is departmentalization by territory method?
Departmentalization by Territory method is followed where; unless to local conditions appear to offer advantages, such as low cost of operation and opportunities to capitalize on attractive local conditions as they arise .
What is planning task force?
Planning Task Force. An organizer is free to use any means of departmentalization in constructing an organization structure. In fact, in any given structure several means are typically used. 1.
What is organizational system?
The organization is a system of integrated parts, and to give undue emphasis to any functional part at the expense of the entire organization creates organizational islands, thus resulting in inefficiency and significant behavioral problems.
What is territorial departmentalization?
Territorial departmentalization is especially popular for sales where division appears feasible according to some geographic market segregation. 3. Departmentalization of the organization by customer group.
What are the two things that need to be considered before setting the formal structure of the organization?
Two particular things need to consider before setting the formal structure of the organization or the Departmentalization. They are; basic organizational units and coordinating structure. Related: Managers Must be a Leader.
Is there a way to departmentalize?
No one way of departmentalizing is suitable for all organizations and all situations. If the CEOs know the various departmentalization patters and the advantages, disadvantages, and dangers of each, they should be able to design the organogram most suitable for their particular operation.
What are the different types of departmentalization?
The five types of departmentalization are: functional, product, customer, geographical and process.
When a company has different customer bases, what is customer departmentalization?
When a company has different customer bases, customer departmentalization allows better. customer servicing . A travel agency can have one team taking care of corporate customers, and the other team taking care of walk-in retail customers.
Is geographic departmentalization good for a multinational company?
Geographical departmentalization is good for a multi-national company. The company can hire local employees to serve different customers from different geographical locations. The different offices in different countries usually report to a regional headquarter.