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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Priorities are set and resources are allocated according to the need, importance and urgency regarding their use by different departments. Clear gases of customers and their needs is the basis of customer departmentation. Creating an Effective Organization Structure: While some of the functional activities are decentralised, others are centralised.

However, there is a theory developed by James Thompson about what is the best way to do it. These sub-departments can be further sub-divided if needed. They are similar to project organisations. Actually, some of these like 1-Knowledge and 2-Work Process can be impossible to distinguish. Here are six common bases for departmentation: An alternative to this is parallel pattern of basws departmentation against the serial pattern drpartmentation moves in a series of steps as described above.



The problem, of course, is that having two bosses can be confusing, and is a situation that is easily exploited by subordinates, who can pit their bosses against each other. Advertising department sub-department of marketing departmentfor example, can further have sub-departments like advertising in Newspapers, Radio, TV etc.

For example, a job requires three steps for its completion. Process departmentation is found in chemical industries and composite textile mills. All the primary and auxiliary activities are managed by one manager. Creating departments and sub-dividing the work of departments into smaller units creates organisation structure.

What are the various bases of departmentation in an office ?

One reason organizations exist is to do things that would be hard for one person to do by themselves. Each department is headed by a person known as departmental manager. The focus is on the product line and all functional activities associated with the product line. For an example, departments can be made based on night shift, morning or regular shift, evening shift, etc. Departmentation, thus, helps in expanding an organisation and also promotes efficiency by dividing the work on the basis of specialisation of activities and appointing people in various departments on the basis of their specialised knowledge.


Bases Methods Types of Departmentalization Bases or methods or types of departmentalization are depicted in this image.

This offers the benefits of specialisation; efficiency and speed. Departmentation enables departmental heads to be creative in making decisions with respect to their departmental activities. Bases or methods or types of departmentalization are depicted in this image.

Here’s how the departmentatuon categories above fall into the two supercategories, along with some other information about the two categories:. When responsibility is clear, authority can also be delegated to managers.

The costs and revenues of all the products can be compared. Step 1, Step 2, and Step 3. Such an organisation would become an inflexible organisation. For example, a manufacturer may have different divisions for each of its product lines. Contemporary marketing world revolves around customers.

People are grouped by what they know. The sales people belong to local areas of operation.

Subordinates are trained to carry out functions related to each product. People working in one department are closely knitted and work collectively towards achievement of departmental goals.


Division of work into units and sub-units creates departments. So these are grouped together under “Manager: Now think about it in terms of interdependencies.

What are the various bases of departmentation in an office ?

He can, thus, exercise control over his departmental activities. Each product division can be taken as a viable profit centre for accountability purposes. Marketing department, for instance, can be further branched out on the basis of territorial dpartmentation geographical departmentation.