- Functional Basis: This is a very popular method of departmentation. ...
- Departmentation by Product or Services: This type suits to organisation which manufacture multi-products. ...
- Departmentation by Regions or Territories: Departmentation by regions may also be called departmentation by territories or areas. This method may be suitable for enterprises whose activities are widely dispersed. ...
- Departmentation by Customers: An enterprise may be divided into a number of departments on the basis of the customers that it serves. ...
- Process-Wise Departmentation: In this method of departmentation, the enterprise is organised on the basis of processes involved in the manufacture of the product. ...
- Departmentation by Time: This method is one of the oldest forms of departmentation and is used at the lower levels of management. ...
- Departmentation by Numbers: In the case of departmentation by numbers, the persons who are to perform the same duties are divided into small groups and then each group is ...
- Departmentation by Marketing Channels:
What is an example of departmentation?
Each group is controlled by a supervisor or an executive. For example, in the Army, soldiers are grouped into squads, battalions, companies, brigades and regiments on the basis of allotment of men to each unit. The principles of span of management span of control or span of supervision is used under this type of departmentation.
Why is the method of departmentation important?
This method of departmentation has grown in importance as business has become increasingly market-oriented. Departmentation is the way in which an organization groups its various activities. There are many ways in which organizations can be departmentalized.
What is combined method of departmentation?
In such concerns no single method or base of Departmentation is helpful and two and more than two methods are used simultaneously. Therefore, it is known by the names of combined, grid, etc. Under this method both the methods – on the basis of functions and on the basis of products – are used in a combined manner.
How to select the right departmentation method for your organization?
For selecting any method, the management must consider factors such as the nature of the enterprise, the nature of product technology employed, the people involved etc., and must balance the advantages of having one method of departmentation as against the disadvantages of another.
What are the methods of Departmentation?
Methods of Departmentation (6 Methods)Functional Departmentation.Product wise Departmentation. ADVERTISEMENTS:Territorial or Geographical Departmentation.Customer wise Departmentation.Process or Equipment wise Departmentation.Combined or Composite Form of Departmentation.
What are the five basis of Departmentation?
The basis are: 1. Departmentation by Function 2. Departmentation by Products 3. Departmentation by Territory/Geographic Departmentation 4.
What is the process of Departmentation?
Departmentation is the process of grouping various activities into separate departments. It is a process of dividing and sub-dividing each activity into small jobs and further grouping them into administrative departments. Departmentation is an essential part of the organizing process.
What are the 4 most common bases for departmentalization?
According to the theory, there are 4 basic rational criteria for choosing the bases for departmentation:Work-flow interdependence. This refers to the flow of product from person to person as it is being constructed. ... Process interaction. ... Economies of scale. ... Social considerations.17-Jan-2001
What are the 4 bases of the department?
Article shared by : ADVERTISEMENTS: There are four different principles or bases on which a department is organised....Geographical Principle.Functional Principle: ... Process Principle: ... Clientele Principle: ... Geographical Principle:
What is Departmentation and its types?
Types of Departmentation – Functional, Product, Geographical, Customer, Process or Equipment, Project or Matrix Departmentation, Team Structures and a Few Others. Departmentation is the way in which an organization groups its various activities. There are many ways in which organizations can be departmentalized.
What is a simple structure?
A simple structure is defined as a design with low departmentalization, wide spans of control, centralized authority, and little formalization. This type of design is very common in small start up businesses.
What is departmentalization explain various types of departmentalization?
Departmentalization (or departmentalisation) refers to the process of grouping activities into departments. Division of labour creates specialists who need coordination. This coordination is facilitated by grouping specialists together in departments.
Why is it important to have a manager who is spread over a large area?
This is necessary particularly when the activities are spread over a large area. This reduces the volume of work and makes it manageable for the individual manager. It also allows him specialize in the peculiar problems of his region.
What is process departmentation?
Process or equipment departmentation is found in manufacturing organizations in which parts of the production process are segregated to improve efficiency in the system. As shown in Figure 3.10, the plant head is reported by Assistant General Managers (AGMs) for the machine shop, foundry, final assembly line, engine assembly, and the paint shop. This kind of departmentation can be done on the basis of the equipment types as well. For example, welding, drilling, lathe machining, etc.
How to design an organization structure?
The first step in designing an organization structure is to divide whole work into a number of jobs to ensure that no important activity is left out. The next step is to bring together homogeneous jobs into groups and to decide their relation to each other. This process is known as departmentation, and it involves a decision, by the chief executive, concerning a logical division of work to be done, and leads to the establishment of a number of manageable units.
What is network structure?
The trust and confidence exhibited by organizations in treating their vendors as close partners has been the hallmark of recent times. Outsourcing is just one brick of this radical phenomenon.
What is concurrent engineering?
It is a product design approach in which the design team includes personnel from the marketing department (to specify the customer requirements), engineering department (to look at the feasibility of the design), production department (to suggest if production capability exists for the design), materials department (to give inputs about the materials availability according to design specifications), and finance department (to suggest financial feasibility of the design) in addition to the design department. Thus, concurrent engineering involves a team structure.
What is informal teams?
The phenomenon of quality circles and TPM (Total Productive Maintenance) circles were instrumental in the creation of informal voluntary teams of workers in organizations during the 1980s and 1990s. These teams were formed voluntarily by workers to find workable solutions to problems faced in their work domains/machinery or to find better ways of doing things.
What is Geographical Departmentation?
Geographical departmentation is the grouping of the organization according to the territorial areas, nationally or internationally. This kind of departmentation is suitable for organizations operating in various markets scattered geographically.
What is departmentalization in business?
Departmentation or Departmentalisation, is grouping of organisational activities into jobs. Thereafter combine jobs into effective work groups and coordination of these groups into divisions. In other words, it is a process of grouping activities of an organisation into a number of separate units for the purpose of efficient functioning.
How does excessive specialization affect teamwork?
Excessive specialisation in the organisation may affect the teamwork. When each employee is specialised in a limited job, he cannot take a balanced view of the broad organisational objectives.
What is departmentation in management?
The process of departmentation of any enterprise consists of defining and enumerating individual tasks, grouping and classification of tasks, delegation of authority for their accomplishment and specification of authority relationships between managers.
What is the process of organising?
The process of organising involves identification of activities necessary to attain in objectives of the enterprises and grouping of similar activities on some logical basis. The process of dividing and grouping related activities into units and sub-units for the purpose of administration is called departmentation.
What is the term for the grouping of tasks into jobs?
Departmentation . Departmentation refers to the grouping of operating tasks into jobs, the combining of jobs into efficient work groups and combining of groups into divisions called as ‘Departments’. Departmentation refers to the horizontal differentiation in an organisation.
How is departmentation done?
Departmentation can be done by enterprise, by territory or geography, by production, by kinds of customers served or by a combination thereof.
What is the genesis of departmentation?
Growth of the enterprise as well as the principle of specialization is the genesis of departmentation. The basic theme of departmentation is dividing the whole work into many groups on the basis of similarity of work and allotting group to a specialized and proficient worker.
What is the process of division of an enterprise into different parts called?
The process of division of the enterprise into different parts is broadly called departmentation or departmentalisation and it is done for the purpose of administration.
What happens to the number of employees when the size of an enterprise grows?
When the size of an enterprise grows, the number of employees (persons) also increases. There is a limitation on the number of persons an enterprise can manage directly. This limitation restricts the size of enterprise if the enterprise does not opt for the device of Departmentation (i.e., horizontal differentiation).
What is the term for identifying and grouping of similar activities on some logical basis so that a team of
Identifying and grouping of similar activities on some logical basis so that a team of persons can be organized in order to attain the objectives of the enterprise may be called departmentation. A department is a work group combined together for performing certain functions of similar nature.
What are the functions of departmentalization?
Departmentalization by function is shown in Fig. 3.11, wherein the activities of the organization are divided into the primary functions to be performed-manufacturing, marketing engineering, research and development, employee relations and finance.
What is the method of departmentation?
Methods of Departmentation: ADVERTISEMENTS: Departmentation is the process which is used to group the activities of the enterprise into various divisions for the purpose of efficient management.
How are manufacturing activities subdivided?
The manufacturing activities may be sub-divided on the basis of their process of production. Similar machines such all lathes, all drilling machines, all shapers etc., are grouped into separate sections, each kept at one place and used for a distinct operation on the job.
Why are sales activities often split into several parts?
To give individual attention to the diverse groups of buyers in the market, sales activities are often split into several parts. When the products are offered to an extensive market through numerous channels and outlets, it has the special merit of supplying goods according to the peculiar needs of customers.
How can efficiency be achieved?
Efficiency can be achieved if departments are created for each process as each one has its peculiarities. It provides the advantages of specialization required at each level of the total processes. The maintenance of plant can be done in better way and manpower can be utilized effectively.
How many departments are there in a 24 hour factory?
For instance, a factory operating 24 hours may have three departments for three shifts—one for the morning, the second for the day, and the third for the night.
What is product departmentation?
In product departmentation, every major product is organized as a separate department. Each department looks after the production, sales and financing of one product. Product departmentation is useful when the expansion, diversification, manufacturing and marketing characteristics of each product are primarily significant.
Why is there difficulty in coordinating the different process departments?
In such departmentation, there may be difficulty in coordinating the different process-departments, because the work of each process depends fully on the prece ding process. So, there are chances of conflicts among the managers looking after the different processes.
What is departmentation in manufacturing?
This is generally used in manufacturing and distribution enterprises and at lower levels of organisation . For instance, a textile mill may be organised into ginning, spinning, weaving, dyeing and finishing departments. Similarly, a printing press may have composing, proof reading, printing and binding departments. Such departmentation may also be employed in engineering and oil industries.
What are some examples of such enterprises?
Banks, insurance companies, transport companies, distribution agencies etc, are some examples of such enterprises, where all the activities of a given area of operations are grouped into zones, branches, divisions etc. It is obviously not possible for one functional manager to manage efficiently such widely spread activities.
What are the advantages of centralization?
2. Each production manager asserts his autonomy disregarding the interests of the organisation. 3. The advantages of centralization of certain activities like financing, and accounting are not available. 4.
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 is a group of people working together who posses similar skills or use the same kind of knowledge, tools
They are as follows: 1. Departmentalization by Function: A function is a group of people, working together, who posses similar skills or use the same kind of knowledge, tools, or techniques, to perform their jobs. Employees who perform similar kinds of work are grouped together into one function unit is called department.
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 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 it important to group all jobs for a product?
Advantages: It would be easy to group all jobs for a product that facilitates coordination and integration within a product department. Managers of the concerned product department can make prompt decisions. Divisional performance can be controlled and evaluated without much difficulty.
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 are the advantages and importance of departmentalization?
The advantages and importance of departmentalization are: Specialization at work. Increase efficiency. Fix responsibility and authority. Facilitation in administration. Feeling of Autonomy. Balanced workload. Management growth.
How does departmentation help in a job?
Departmentation helps to increase efficiency in work through specialization. Every member of an organization has a specific task to do when they involve in particular tasks repetitively their efficiency is increased in the given job.
What is departmentalization in schools?
In number departmentalization, separate departments are made after analysing and judging the maximum limit up to which number of persons can be managed or educated or supervised or taken care of. This method of departmentalization is generally used in schools and colleges for making division of classes.
What are functional departments? What are some examples?
Examples of functional departmentalization include; production department, finance department, marketing department, human resource (HR) department, etc. Here, all activities, which are directly or indirectly connected with production are grouped together to make a production department.
What is process departmentalization?
In process departmentalization, departments are separated based on a type of product produced by the company. Here, every individual department is responsible for producing and selling the type of product assigned to them.
What is the purpose of a branch or an office in each geographical zone?
Secondly, a branch or an office is established in each geographical zone to manage local affairs of the company in that zone.
Departmentation – Introduction
Departmentation – Meaning
- Departmentation refers to the grouping of operating tasks into jobs, the combining of jobs into efficient work groups and combining of groups into divisions called as ‘Departments’. It refers to the horizontal differentiation in an organisation. It is a method of arranging activities and employees to facilitate the accomplishment of overall objecti...
Departmentation – Definitions
- In any organisation several activities are performed. It is not possible for one man to perform all the activities. Hence, activities are identified and grouped and, accordingly, people are appointed to perform specific jobs. In a small enterprise, jobs are assigned without dividing the enterprise into several units. But when the same enterprise grows in size and becomes a big or giant enterprise it would not be possible to follow the old pattern. The enterp…
Departmentation – Importance and Need
- The management of an enterprise is made more effective by departmentation. It would be a very complex task for the management without dividing the organisation into units and sub-units. It is necessary on account of the following reasons: 1. Specialisation – Departmentation enables the enterprise to avail the benefits of specialisation. The work is divided into different departments. When every department looks after one major fun…
Departmentation – Bases For Creating Departments
- Since departmentation involves grouping of similar activities together, managers, often, come across with the problem about the basis on which similarity of activities should be defined. There are several bases of departmentation. However, the more commonly used bases for creating departments or divisions at sufficiently higher level are – function, product, territory, process, and customer. Some of these bases are internal operation …
Departmentation – Top 8 Types of Departmentation
- There are many alternative patterns for grouping organisational activities. Departmentation can be done by enterprise, by territory or geography, by production, by kinds of customers served or by a combination thereof.
Departmentation – Merits of Departmentation
- Departmentation helps in simplifying the task of top management. It also facilitates overall control of the functions of the enterprise. Other merits of departmentation are discussed below: 1. When jobs are well defined and responsibilities are clearly mentioned it is easier to fix accountability for the results. 2. The efficiency of management and enterprises because everyone knows his duties and authority, well defined jobs and limits of a…