There are several types of departments set up by an organization, common among these are as follows:
- (1) Functional departmentation;
- (2) Geographical or territory-wise departmentation;
- (3) Product-wise departmentation;
- (4) Customers-wise departmentation;
- (5) Numerical departmentation.
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.
What are the different types of departmentalization?
Departmentation by functions. 2. Departmentation by product or service. 3. Departmentation by regions (area or location) or territory. 4. Departmentation by customers. 5. Departmentation by process. 6. Departmentation by time. 7. Departmentation by numbers. 8. Departmentation by marketing channels.
Which type of departmentation do most organisations use in practice?
In practice, because of the expansion of business and complexity of tasks, most organisations use a combination of functional, geographic or any other form of departmentation. Type # 6. Project Organisation:
Which is the most logical and simple form of departmentation?
This is the most logical and simple form of departmentation. Functional departmentation is the process of dividing the organization into units on the basis of the firm’s major functions. For example, in a manufacturing company, the activities essential to the existence of the company are production, marketing, and finance.
What is departmentalization and its types?
What is Departmentalization? Departmentalization involves dividing an organization into different departments, which perform tasks according to the departments' specializations in the organization. Departmentalization as a means of structuring an organization can be found in both public and private organizations.
What are the four types of departmentalization?
Types of DepartmentalizationFunctional Departmentalization.Departmentalization by Territory.Departmentalization of the organization by customer group.Matrix departmentalization.Planning Task Force.
How many types of departmentalization are there?
The five types of departmentalization are discussed and listed as follows: a) Functional departmentalization b) Product departmentalization c) Customer departmentalization d) Geographical and process.
What are the three types of departmentalization?
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 are the 4 types of organizational structures?
The four types of organizational structures are functional, divisional, flatarchy, and matrix structures.
What are the 4 types of organizational structures examples?
Traditional organizational structures come in four general types – functional, divisional, matrix and flat – but with the rise of the digital marketplace, decentralized, team-based org structures are disrupting old business models.
What are the 3 types of organizations?
Three forms of organizations describe the organizational structures that are used by most companies today: functional, departmental and matrix. Each of these forms has advantages and disadvantages that owners must consider before deciding which one to implement for their business.
What is the Departmentation?
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 are the five bases of departmentalization?
Here are six common bases for departmentation:Knowledge and Skill. People are grouped by what they know. ... Work Process. Workers are grouped based on the process or activity used by the worker. ... Business Function. ... Time. ... Output. ... Client. ... Place.
What is the most common form of departmentalization?
Functional departmentalizationIs when jobs are grouped according to activities or its function. It is very common form ofdepartmentalization, functional departments usually include marketing, sale, human resourcesdepartment, finance departments respectively.
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 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 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 functional departmentation?
The advantages of functional departmentation include the following: · It is the most logical and natural form of departmentation. · It ensures the performance of all activities necessary for achieving the organisational objectives. · It provides occupational specialisation which makes optimum utilisation of manpower.
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 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.
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 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 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.
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 product wise departmentation?
A simple representation of product wise departmentation is given as follows: Product wise departmentation is also known as multifunctional product departmentation, because each product department handles all the functions concerning it.
What is a combined department?
Combined or Composite Form of Departmentation. 1. Functional Departmentation: It refers to grouping the activities of an enterprise on the basis of functions such as production, sales, purchase, finance, personnel, etc. The actual number of departments in which an enterprise can be divided depends upon the size of establishment and its nature.
What is grouping of activities on the basis of products?
The grouping of activities on the basis of products is very popular with large organisations having distinct type of products. Under this method, all activities related to one type of product are put together under one department under the direction of a production manager. An electronic company, for instance, may have different departments dealing in television sets, radios and transistors, computers, agro-dairy instruments, etc.
What are the advantages of functional departmentation?
The important advantages of functional departmentation are: ADVERTISEMENTS: I. It is a very simple, natural and logical way of grouping activities. II. It promotes specialisation and expertise in various functional areas and experts can be employed. III.
Can you create departments on the basis of any one of the above mentioned methods?
In practice, it may not be advisable to create departments on the basis of any one of the above mentioned methods. An enterprise may have to combine two or more of the methods of departmentaton to make best use of all of them. Such a method is known as combined or composite method of departmentation. ADVERTISEMENTS:
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
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What is departmentation by territory?
Departmentation by Territory: It is suitable for organisations having wide geographical market such as pharmaceuticals, banking, consumer goods, insurance, railways etc. Here, the market is broken up into sales territories and a responsible executive is put in charge of each territory.
Why is process departmentation important?
It is useful for organisations which are engaged in the manufacture of products which involves several processes.
What is combined base departmentation?
Combined base departmentation is also called as composite departmentation or mixed departmentation.
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.
What is product departmentation?
One such new model is product Departmentation. It involves grouping of activities necessary to manufacture a product. There is a separate department called Product Department which takes into account all the activities related to the manufacturing of a major product.
Why is departmentation by process important?
Departmentation by process is useful when machines or equipment used require special operating skills. It is better suited to manufacturing companies whose activities can be neatly grouped into various processes. This kind of structure enables an organisation to reap the benefits of specialisation, optimum maintenance of equipment and resources etc.
Why is functional departmentation inadequate?
Functional departmentation is often found to be inadequate to meet the growing needs of the business, particularly as the organization expands or diversifies its activities; 2. Further, decision-making becomes slow as the functional mangers have to get the approval of the headquarters; 3.
What is divisionalization in business?
Departmentation by product (also called divisionalisation) is adopted in the case of a multi-product enterprise. The product structure is organized according to organizational output. The structure is divided into several fairly autonomous units. Each unit is relatively self-contained and is headed by a product manager who is responsible for the company’s investment in capital, facilities as well as the unit’s progress.
What is departmentation by time?
Under departmentation by time, activities are grouped on the basis of time, i. e., working hours. The use of shift system under factory operations is an example of departmentation by time.
What is the process of creating departments along the geographical lines?
The process of creating departments along the geographical lines is termed territorial departmentation. This method is adopted when an organization operates in different geographical area, each with distinct needs. It makes it easier for the organization to cope with variations in laws, local customs and customer needs.
Why is geographic departmentation important?
Geographic departmentation, also known as the departmentation by territory, facilitates adaptation to territorial differences. Large companies that distribute products on a massive scale nationally often cannot coordinate all regions from the headquarters. Each region of the country has distinct needs, tastes and facilities that demand coordination. Geographic departmentation helps in exploiting the local advantages .
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 objectives. According to Koontz and O’Do…
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 enter…
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...
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, an…
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 everyon…