5methods of departmentalization

Decentralized Organizational Structure Departmentalization is an aspect of organizational design where a business divides its staff into smaller units based on tasks within the company. Most companies, including restaurants, are likely to use two or more types of departmentalization at the same time. Restaurants are often organized around the types of food served, the tasks handled by the staff and the chain of command in the company.

5methods of departmentalization

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Now let's proceed further to explain each base or type of departmentalization. Functional departmentalization In functional departmentalization, departments are segregated i. Examples of functional departmentalization include; production department, finance department, marketing department, human resource HR department, etc.

Here, all activities, which are directly or indirectly connected with production are grouped together to make a production department. Departmentalization based on function is 5methods of departmentalization in the image given below.

Process departmentalization In process departmentalization, departments are separated based on their role in a production process. Best example of process departmentalization can be seen in a textile mill where we may have a spinning department, weaving department, dyeing department, printing department, etc.

Here, inside a textile mill, all activities, which are directly or indirectly related with spinning are grouped together to make a spinning department. Departmentalization based on a production process is depicted below. Product departmentalization In process departmentalization, departments are separated based on a type of product produced by the company.

Here, every individual department is responsible for producing and selling the type of product assigned to them. A good example of product departmentalization is witnessed in an automobile manufacturing company.

In such a company, we generally see departments like a two-wheeler department, three-wheeler department, four-wheeler department, heavy motors department, etc. Here, inside an automobile company, all activities, which are directly or indirectly related to car manufacturing are grouped together and assigned to four-wheeler or car department.

Departmentalization made on the type of product produced is depicted below. Geographic departmentalization In geographic departmentalization, separate departments are made based on the company's i.

Bases Methods Types of Departmentalization

First, an entire area of operation e. Secondly, a branch or an office is established in each geographical zone to manage local affairs of the company in that zone.

For example, a large company may operate globally through its different zonal departments established on a country basis. In a similar context, a small business or firm may operate only within city boundaries through its offices established in east zone, west zone, north zone and south zone of the city.

Departmentalization based on the division of an area of operation into different zones is shown in the following image. Customer departmentalization In customer departmentalization, departments are separated from each other based on the types or groups of customers to be handled or dealt with.

For example, customers can be classified under types such as, international or foreign customers, inland or domestic customers, bulk purchasing or wholesale customers, retail customers, etc.

Departmentalization or departmentalization refers to the process of grouping activities into departments. Departmentalization is the process of breaking down an enterprise into various departments. How jobs are grouped together is called departmentalization. Departmentalization is a method of dividing an organization into different departments, which performs certain tasks in accordance with the department's specialization. Organizations can. Essay on 5methods of Departmentalization Essay Topic “What five methods have traditionally been used to departmentalize work and worker? Give one advantage and one disadvantage of each.

Each group of customers needs different tactics and strategies to handle them better. Hence, an appropriate customer departmentalization serves this purpose.

Functional departmentalization can be used in all types of organizations. Only the functions change to reflect the organization’s objectives and activities. The major advantage to functional departmentalization is the achievement of economies of scale by placing people with . types of organization types of departmentalization centralization and decentralization “Organization is a system of co -operative activities of two or more persons.”. Departmentalization (or departmentalisation) refers to the process of grouping activities into departments. Division of labour creates specialists who need coordination. This coordination is facilitated by grouping specialists together in departments.

Departmentalization based on the types or groups of customers to be handled in shown in the following image. Combined departmentalization In combined departmentalization, a company or an organization uses a mixture or combination or union of two or more different bases of departmentalization.

For example, in practice, owing to rising market competition and emerging complexity of tasks most organizations often uses a combination of above-discussed see point no. Departmentalization by using a combination of two or more different bases is shown in the following diagram.

Time departmentalization In time departmentalization, departments are separated based on the division of their working time or job shifts. For an example, departments can be made based on night shift, morning or regular shift, evening shift, etc. Examples of such organizations include; hospitals, hotels, airports, police, security, and so on.

Departmentalization done on a basis of division of work time is depicted in the following image. Number departmentalization In number departmentalization, separate departments are made after analysing and judging the maximum limit up to which number of persons can be managed or educated or supervised or taken care of.

This method of departmentalization is generally used in schools and colleges for making division of classes. For example, students having numbers from 1 to 50 are made to sit in A division of their class and so on.Departmentalization is a method of dividing an organization into different departments, which performs certain tasks in accordance with the department's specialization.

Organizations can. Departmentalization or departmentalization refers to the process of grouping activities into departments.

5methods of departmentalization

Departmentalization is the process of breaking down an enterprise into various departments. How jobs are grouped together is called departmentalization. “What five methods have traditionally been used to departmentalize work and worker? Give one advantage and one disadvantage of each.

Provide an example of functional departmentalization at your University and using the definitions in your textbook explain why it is suitable example. 5methods of Departmentalization Essay Essay Topic “What five methods have traditionally been used to departmentalize work and worker? Give one advantage and one disadvantage of each.

The five types of departmentalization are: functional, product, customer, geographical and process. Functional departmentalization Most companies practice functional departmentalization.

5methods of departmentalization

An example is the Production department, HR department, Accounts . Combined departmentalization In combined departmentalization, a company or an organization uses a mixture or combination or union of two or more different bases of departmentalization.

For example, in practice, owing to rising market competition and emerging complexity of tasks most organizations often uses a combination of above-discussed (see point no.

1 to 5) types (i.e. methods or bases) of .

Five ways to departmentalize