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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Similarly, Post Offices are often divided by regions and zipcodes.

Even for large organisations, it is suitable only for top levels. Managers should be competent to perform functional activities production, marketing etc.

This type of departmentation provide the benefits of both functional and product structures. Conflicts may arise among managers of different processes, particularly when they loose sight of the overall company goals. This method of departmentalization is generally used in schools and colleges for making division of classes. Activities are divided into smaller segments, standards of performance can be framed, factors affecting performance can be identified and control can be more objective in nature.

Notes on Departmentation: Meaning, Importance and Basis | Organisation

All the primary and auxiliary activities are managed by one manager. For example, a manufacturing company may create separate casting, welding and machining groups. All functions related to particular product are bought together under the umbrella of product manager. No Comment Yet Please Comment. This is possible through shift duties. This approach also encourages specialization, as within a central maintenance department there can be specialists for different kinds of problems.


What are the various bases of departmentation in an office ?

There are four kinds of increasingly deparfmentation interdependence: The next tightest interdependencies are the sequential interdependencies between fabrication and assembly, since first you make the materials, then you assemble them. But the most commonly adopted bases of departmentation are: This article throws light upon the six different basis of departmentation in an organisation.

Thus, organisation structure is facilitated through departmentation. Bases Methods Types of Departmentalization Bases or methods or types of departmentalization are depicted in this image. Examples of such organizations include; hospitals, hotels, airports, police, security, and so on.

Within the office the departmentation may takes place on functional basis like typing department and filing department. Product departmentation is grouping of jobs and resources around the if or product lines that a company sells. If planned performance is not achieved, the department responsible becomes answerable. So at the next level up, we merge all of these under “Vice-President: Counting deprtmentation the bottom up, the first and second groupings are by work process, the third is by business function, and the fourth is by output product.

6 Different Basis of Departmentation in an Organisation

On what basis should we carve up the members of the organization into subunits? Military forces also use this method.

In this type of departmentation the finished product of one process becomes raw material in another process. After reading this article you will learn about: Departmentation facilitates control by departmental manager over the activities of his department only.


The departmental managers, therefore, must have specialised skills to determine the consumer needs. In such a company, we generally see departments like a two-wheeler department, three-wheeler department, four-wheeler department, heavy motors department, etc.

Clear identification of responsibility and authority increases efficiency of the departmental activities. This can also result in conflict amongst process managers. Large organisations, where each process requires different technology, operate most suitably under process departmentation. People working in one department are closely knitted and work collectively towards achievement of departmental goals. People are grouped by what they know.

Here’s how the seven categories above fall into the two supercategories, along with some other information about the two categories:. It is not easy to identify various consumer groups. Thereafter, some other basis of departmentation has to be used.

In process departmentalization, departments are separated based on a type of product produced by the company. Works well with smaller organizations Groups skill sets so they can consult with each other and socialize each other: For example, a large company may operate globally through its different zonal departments established on a country basis.

The bases of departmentation vary from organization to organization as the nature of business differs. He can co-ordinate the efforts of people working under him. Under this basis of departmentation, the business is divided into a number of departments on the basis of customers.