Definition, Meaning and Bases of Departmentation such as Functional, Territorial, Process, Product, Customer, Time, their merits & demerits are explained in this. The question arises: On what basis should we carve up the members of the organization Here are six common bases for departmentation. Departmentation: Meaning and Bases | Organisation Process. Article shared by: After reading this article you will learn about Departmentation: 1. Meaning of.
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In general, it is more useful to think in terms of two basic categories, which are generally called function and market, but which you might think of as Means and Ends. Bases Methods Types of Departmentalization Post: Step departmentaiton, Step 2, and Step 3. Marketing managers have to balance the time and money spent in framing policies so that organisation can adapt to the changing customer environment.
Demand dwpartmentation the same product for same set of consumers differs during different times. Departmentation is an important process of office management. This departmentation is most widely used basis for organising activities and is present in every organisation at some level Fig.
In number departmentalization, separate departments are made after analysing and judging the maximum limit up to which number of persons can be departmentayion or educated or supervised or taken care of. For example, it’s hard to conceive of one person building an office building.
For example, in practice, owing to rising market competition and emerging complexity of tasks most organizations often uses a combination of above-discussed see point no. The departmentation by process can be shown as Fig 6. Employees have to explain to the workers joining the next shift about the stage of completion at which they are leaving the work which may not always be possible.
When work is ov. There are also sequential interdependencies between the business functions of design engineeringmanufacturing, and marketing.
Notes on Departmentation: Meaning, Importance and Basis | Organisation
It doesn’t have to be rational. This is the most common basis of departmentation, under this the departmentation takes place on the basis of the basic functions of the enterprise.
The focus is completely on one product and all functional activities related to that product rather than one functional activity related to all products. Departmentation by Products 3. Best example of process departmentalization can be seen in a textile mill where we may have a spinning department, weaving department, dyeing department, printing department, etc.
The organisation chart for customer departmentation for a lending company appears as follows: Before preserving your articles on this site, please read the following pages: This type of classification is adopted by enterprises offering specialized services. The process by which the activities of an enterprise are grouped homogenously into different groups.
What are the various bases of departmentation in an office ?
Consumer department managers cannot easily frame policies for their departments because of changing consumer behaviour. Thus there may be wholesale department, retail department and consumer departmental in an organization.
This can affect efficiency of the departmentxtion.
Preserve Articles is home of thousands of articles published and preserved by users like you. They focus on a narrow set of activities and repeatedly performing the same task increases their ability to perform more speedily and efficiently. Process departmentation is found in those industries which involve different processes of production.
Here, inside an automobile company, all activities, which are directly or indirectly related to car manufacturing are grouped together and assigned to four-wheeler or car department. Here, all activities, which are directly or indirectly connected with production are grouped together to make a production department.
Priorities are set and resources are allocated according to the need, importance and urgency regarding their use by different departments. For example, students having numbers from 1 to 50 are made to sit in A division of their class and so on.
6 Different Basis of Departmentation in an Organisation
Here the activities are grouped on the basis of produce or product lines. In this type of departmentation the finished product of one process becomes raw material in another process. Now think about it in terms of interdependencies.
Division of organisation on the basis of geographic dispersal of activities appears on the organisation chart as follows: Nature, Advantages and Demerits. It helps in coordinating the activities of different products. This promotes product specialisation which helps in product growth.