Departmentation in management. Departmentation 2022-10-28

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In management, departmentation refers to the process of grouping activities into departments. This process is typically carried out in order to increase efficiency and effectiveness by allowing specialization and the division of labor. Departmentation can be based on a variety of factors, including function, geography, product, customer, or process.

Functional departmentation is the grouping of activities based on the type of work being performed. For example, a company may have a marketing department, a sales department, and a finance department. This type of departmentation is often used in companies that have a narrow range of products or services.

Geographic departmentation is the grouping of activities based on location. This is often used in companies that operate in multiple countries or regions. For example, a company may have a Europe division, an Asia division, and a North America division.

Product departmentation is the grouping of activities based on the specific product or service being offered. This is often used in companies that have a wide range of products or services. For example, a company may have a department for each of its products, such as a department for cars, a department for trucks, and a department for motorcycles.

Customer departmentation is the grouping of activities based on the specific customer or market being served. This is often used in companies that serve multiple customer segments or markets. For example, a company may have a department for retail customers and a department for wholesale customers.

Process departmentation is the grouping of activities based on the specific process being used. This is often used in companies that have complex processes or that manufacture products using multiple processes. For example, a company may have a department for each stage of the manufacturing process, such as a department for casting, a department for machining, and a department for assembly.

There are pros and cons to each type of departmentation. One advantage of departmentation is that it allows for specialization and the division of labor, which can increase efficiency and effectiveness. It also allows for the development of expertise within each department, which can lead to better decision-making and problem-solving.

However, departmentation can also create silos and hinder communication and coordination between departments. It can also lead to conflicts of interest and misunderstandings. To overcome these challenges, it is important for managers to establish clear lines of communication and to promote collaboration and coordination across departments.

In conclusion, departmentation is an important aspect of management that allows for specialization and the division of labor. While it can bring benefits, it is important for managers to be aware of its potential drawbacks and to take steps to promote communication and coordination across departments.

Departmentation: Management and Example Essay Example

departmentation in management

Therefore management should see that the departments created make the best possible use of these factors and that maximum economy is achieved in creating the departments. Coordination is expected to accomplish the overall goals of the organization. Otherwise it may create more problems than it solves. Departmentalization involves dividing an organization into different departments, which perform tasks according to the departments' specializations in the organization. Customer Departmentation: According to this method, the departmentation of an enterprise is done according to the type of customers.

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Departmentation in Management: Meaning, Importance, Principles, Types, Methods

departmentation in management

Disadvantages : ADVERTISEMENTS: 1. When each department looks at a key function, the enterprise develops and the efficiency of operations increases. Control: Departmentation should serve to make control as effective as possible. When a company decides to expand geographically, it automatically incurs cost through duplication of personnel positions and additional building sites. Maximum Use: The term maximum use means that a given activity will be attached to the major department which makes most use of it. What do you mean by Departmentation explain the main bases of Departmentation? In reality, a single organization may employ one or all of the bases of departmentalisation at the same or various hierarchical levels.

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Departmentation: Meaning, Aims and Methods

departmentation in management

The final decision will depend upon the foresight and initiative of the top management. This may result in the loss of business. For example, hospitals have departments like Neurology, Allergy, Cardiology, Internal Medicine, Gastro-Enterology, etc. A second potential problem is duplication of facilities and equipment. They may also got bogged down in discussion and not focus on their primary objectives. To describe the functions or to group similar activities, 4.

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Departmentation

departmentation in management

This helps in minimising the administration costs. Departmentation ā€” 10 Important Principles The important principles of departmentation are as follows: Principle 1. Employees may begin to concentrate too narrowly on their own units and lose sight of the total organisation system. The basic need for departmentation is to make the size of each departmental unit manĀ­ageable and secure the advantages of specialisation. It makes the management control work more difficult.


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Departmentation: Management and Example

departmentation in management

The departmentation envisage need to develop the common standards and measures of performance. Introduction to Departmentation 2. It furnishes measurable training ground for general managers. Departmentation makes it possible for the enterprise to grow and expand. However, no department is responsible for end results of the organization because each department concentrates on its own working and its end results. Special Attention: Departments which create more value addition should be given more weight. It may be difficult to co-ordinate the activities of different departments because the employees narrow their focus to the department.


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What are the Bases and Principles of Management Departmentation?

departmentation in management

It reduces the cost of operation and gains saving in time. ADVERTISEMENTS: Finally, activities concerned with overseas business opportunities are grouped together in the international division. The completion of such a project requires close, integrated work between and among numerous functional specialities. This improves efficiency in the organisation. Simply stated, Departmentation is the process of classifying or grouping of activities of an organisation into different units and sub-units with the aim of carrying out the activities efficiently for achieving the overall objectives.

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Organisation and Departmentation

departmentation in management

Expansion: Organisations can cope with heavy work by simply dividing the same among a number of smaller, flexible departments. This process involves dividing and grouping of activities of an enterprise into viable divisions or departments for improving the performance in the organisation. Product Basis: Product departmentation, in which the major funcĀ­tional activities associated with a given product or commodity or service are organised under a single head, is a widely used basis for departmenĀ­tation. The central agency decides matters relating to creation of fresh divisions, merging existing divisions, nature of relationship between divisions and headquarters in terms of supervision and control and so on. Matrix Structure: The focuses in functional structure remain on specialisation, and in divisional structure it is on the results.

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What do you mean by Departmentation in management?

departmentation in management

A brief discussion of the above classified departmentation is given below: 1. The different bases do have their own importance and need depending on the business. The profitability of each product is known to the management. Specialization: The basis of departmentation should reflect specialization in performing the work. Large industrial houses in India are shifting from traditional hierarchical structure to horizontal structure, thereby reducing the excessive formalisation of the organisation structure.

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Departmentation: Meaning, Importance, Process, Need, Principles, Types, Merits

departmentation in management

The project organisation is employed in organisations where projects are subject to high standards of performance like aero-space, aircraft manufacturing, construction and professional areas like management consultants. Here are six common bases for departmentation: 1. ADVERTISEMENTS: Departmentation is a process of grouping various activities into separate units. A department may be called a division, branch, regiment, section or some other organizational unit. This has necessitated the cross functional teams replacing the rigid departments. Similar machines such all lathes, all drilling machines, all shapers etc. He is ultimately responsible for the smooth functioning of the department.

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Departmentation: Its concept, Structure, Benefits and other Details

departmentation in management

This type of departmentation is made by the large-scale business unit. Network organisation is different from traditional hierarchical organisation structures. If it is so, the cost of operation will be high. The responsibility of the management is to maintain co-ordination among the contracting firms. Departmentation or departmentalisation is a process where tasks are grouped into jobs, jobs into effective work groups and work groups into identifiable segments or departments.


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