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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What are the various bases of departmentation in an office ?
After reading this article you will learn about: Change in consumer behaviour, their demand for different goods at different times cannot be easily predicted.
An organisation selling stationery, for example, also starts selling cosmetics and pharmaceuticals. Departmentation provides scope for organisational growth along the same product lines and expansion adding new product lines.
The general departmentatuon of this type of departmentation is depicted big fig 6. On what basis should we carve up the members of the organization into subunits? When organisation has a number of projects, it forms task forces which consist of people from different units having different skills to complete those projects.
Here, all activities, which are directly or indirectly connected with production are grouped together to make a production department. Specialisation promotes efficiency, lowers the cost of production and makes the products competitive. A department created for satisfying customer requirements becomes specialized in that area resulting in cost efficiency. Product managers are accountable for results of their product departments.
This can also result in conflict amongst process managers. An deprtmentation to this is parallel pattern of process departmentation against the serial pattern work moves pf a series of steps as described above.
6 Different Basis of Departmentation in an Organisation
They may not specialise in all the functional activities. The form of organisation structure depends upon the basis of departmentation.
Need, Significance and Process. Clear identification of customers and their needs is the basis of customer departmentation. Here the activities are grouped on the basis of produce or product lines. It is not easy to identify various consumer groups.
The process by which the activities of an enterprise are grouped homogenously into different groups. Grouping based on the products or services that the employee works on. It is suitable for organisations having wide geographical market such as pharmaceuticals, banking, consumer goods, insurance, railways etc.
Notes on Departmentation: Meaning, Importance and Basis | Organisation
If firms establish their areas of operation near the sources of raw material, they will be able to produce at low cost and take advantage of economies of operation. So they are the first to be grouped together under “General Foreman: Process departmentation is found in chemical industries and composite textile mills.
Departnentation departmentation is not suitable in such cases. If workers are not able to carry out the activities efficiently, managers can train them to do so.
Some people therefore report to two depadtmentation. This would be impossible in most cases. Workers are grouped based on the process or activity used by the worker. Since employees carry out only one operation or process on the work activity, managers can train people to efficiently carry out that process. ManagementProduction Planning.
It is grouping of activities on the basis of similarities of functions. This basis is suitable for large-sized organisations which have activities dispersed over different geographical areas. The instances of functional departmentation are production office, purchase office, sales office and accounts section. Departments are created and activities of similar nature are grouped depaartmentation one unit. Thus, departmentation means the process of grouping the various activities into separate unit.
So these are grouped together under “Manager: During boom conditions, the demand increases and, therefore, extra departmentatioj has to be borne by machines. Departmentation means division of work into smaller units and their re-grouping into bigger units departments on the basis of similarity of features. It provides an opportunity to a regional manager to gain broad experience as he looks after the complete operation in a particular territory.
Here’s how the seven categories above fall into the two supercategories, along with some other information about the two categories:.
Every product manager wants to maximise profits of his product, for which he delegates authority to depadtmentation of his department and establishes authority-responsibility relationships amongst them.