What is Departmentation PDF?

‘Departmentation’ or ‘Departmentalisation’ is the process of grouping the activities of an enterprise into several units for the purpose of administration at all levels. The administrative units so created may be designated as departments, divisions, units, branches, sections, etc.

Departmentation means division of work into smaller units and their re-grouping into bigger units (departments) on the basis of similarity of features. Each department is headed by a person known as departmental manager.

One may also ask, what is departmentalization PDF? Meaning: Departmentalization means the process by which similar activities of the business are. grouped into units for the purpose of facilitation smooth administration at all levels. In short, it. means grouping activities and people into departments.

Also to know, what is Departmentation and types of Departmentation?

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 Departmentation by product?

Product departmentation organizes employees based on which product line or set of services they work with. Each product line has a department of its own, and each department has specialists in all of the functions needed to produce and sell that product, such as marketing, manufacturing, accounting and human resources.

What are the types of departmentalization?

The bases or methods or types of departmentalization are listed as follows: Functional departmentalization. Process departmentalization. Product departmentalization. Geographic departmentalization. Customer departmentalization. Combined departmentalization. Time departmentalization. Number departmentalization.

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.

Why is Departmentation important?

Importance of Departmentation. Increases Efficiency: Grouping of activities and specialization help in the optimum use of all resource which increases efficiency. Fixes Responsibility: Departmentalization leads to delegation of authority and accountability and fixes responsibility of the manager.

What are the advantages of Departmentation?

It simplifies managerial tasks. By defining the duties and responsibilities of the executives clearly, departmentation fixes accountability for the results. This makes the executive alert and efficient. Departmentation increases the operating efficiency of the organisation.

Why is Departmentation needed?

The basic need for departmentation is to make the size of each departmental unit manageable and secure the advantages of specialisation. Grouping of activities and, consequently, of personnel, into departments makes it possible to expand an enterprise to any extent.

What are the types of Organisation?

There are three types of organizations in terms of project management in a company. These are Functional Organization, Projectized Organization, and Matrix Organization. We will be going over each type of organizational structures one by one.

What do you mean by MBO?

Management by objectives (MBO) is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees. The term was first outlined by management guru Peter Drucker in his 1954 book, The Practice of Management.

What is chain of command in business?

In an organizational structure, “chain of command” refers to a company’s hierarchy of reporting relationships – from the bottom to the top of an organization, who must answer to whom. The chain of command not only establishes accountability, it lays out a company’s lines of authority and decision-making power.

What are the functions of Departmentation?

Departmentation creates departments, assigns tasks to people, fixes their responsibility and accountability to their departmental heads, creates a span of management so that work can be easily supervised. This network of authority- responsibility relationships is the basis of designing a sound organisation structure.

What is control process?

The control process is the system that allows setting, measure, match and tweak any business activities such as production, packaging, delivery and more. The control process is the functional process for organizational control that arises from the goals and strategic plans of the organization.

What is the most common type of departmentalization?

The five types of departmentalization are: functional, product, customer, geographical and process. Most companies practice functional departmentalization. An example is the Production department, HR department, Accounts department, Marketing department and IT department.

What are the 6 major functional areas of a business?

Generally, the six functional areas of business management involve strategy, marketing, finance, human resources, technology and equipment, and operations. Therefore, all business planners should concentrate on researching and thoroughly understanding these areas as they relate to the individual business.

What are the 5 functional areas of business?

Common functional areas in businesses include sales, marketing, finance and accounting, customer service, human resources, research and development, production, and distribution.

What is time Departmentation?

Departmentation by Time: The organisation which are working around the clock are generally departmentalized on the basis of time shifts. Example, hospitals and telecom.