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.

Author: Vit Zolokinos
Country: Oman
Language: English (Spanish)
Genre: Finance
Published (Last): 13 May 2009
Pages: 464
PDF File Size: 11.1 Mb
ePub File Size: 20.73 Mb
ISBN: 226-1-23252-825-9
Downloads: 12817
Price: Free* [*Free Regsitration Required]
Uploader: Mezicage

6 Different Basis of Departmentation in an Organisation

The major functional departments further have derivative departments. An alternative to this depzrtmentation parallel pattern of process departmentation against the serial pattern work moves in a series of steps as described above. Meaning of Departmentation 2. For example, it’s hard to conceive of one person building an office building.

Above this level, most of the workflow interdependencies are only of the pooled variety: Workers are grouped based on the process or activity used by the worker. Division of work into departments leads to specialisation as people of one department perform activities related to that department only. Flow of work from one level to another and for every department, i. Works well with smaller organizations Groups skill sets departmentaiton they can consult with each other and socialize each other: Here departmentation is done on the basis of geographical area of operation of the enterprise.


It is easy for managers to supervise the departmental activities as they have to supervise a narrow set of functional skills.

One manager may not have skills to carry out all operations for different product lines. Nature, Advantages and Demerits.

All the primary and auxiliary activities are managed by one manager. 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.

This would be impossible in most cases.

An organization can divide itself into departments any way it wants using any criteria it wants — departmetation is no law about it. This can affect efficiency of the process. Combined base departmentation is also called as composite departmentation or mixed departmentation. This method of departmentation results in optimum utilisation of machines as they work continuously which otherwise may remain idle.

Here, every individual department is responsible for producing and selling the type of departmdntation assigned to them.

It results in duplication or multiplication of efforts because same functional activities are performed for different products. Process departmentation is found in chemical industries and composite textile mills. Departmentaation geographic departmentalization, separate departments are made based on the company’s i.

Managers are able to promote sales as they are aware of the local conditions of the area where they are operating. Step 1, Step 2, and Step 3.

Each group of customers needs different tactics and strategies to handle departmentaion better. Departmentalization by using a combination of two or more different bases is shown in the following diagram.


However, coordinating, controlling and just keeping track of a lot of individuals introduces its own problems. This form of departmentation is suitable for companies that produce multiple products.

Creating departments focuses edpartmentation departmental activities and facilitates co-ordination. But the conflicts between different departments and division may increase.

Bases Methods Types of Departmentalization

Sales people for one product will concentrate on sales promotion of that product only. It is fepartmentation process departmentation.

Part and parcel of this hierarchical supervisory system is the cutting up of the organization into groups departments. The business has three categories of customers like wholesaler, retailer and consumer. The matrix form works best when one dimension is a permanent affiliation typically functionaland the other is a temporary dimension, such bbases a client project.

This promotes performance and profitability of different product departments. The big advantage of matrix organizations is that they are great for sharing of information and enabling xepartmentation to coordinate their efforts with larger organizational goals and strategies. Home Disclaimer Privacy Contact. Departmentation on the basis of product is made where the business has produced a number of products.