Archive | Departmentation

Grouping Activities into Departments | Organisation | Management

The important methods of grouping activities into departments may be summed up as follows: 1. By Enterprise Functions 2. Departmentalisation by Products 3. Departmentation by Customers or Markets 4. Departmentalisation by Territory 5. Departmentation by Process. Method # 1. By Enterprise Functions: The most simple and common type of organisation consists of grouping of all […]

Departmentation: Meaning, Aims and Methods | Management

After reading this article you will learn about:- 1. Meaning of Departmentation 2. Aims of Departmentation 3. Methods 4. Advantages. Meaning of Departmentation: When the size of an enterprise grows, the number of employees (persons) also increases. There is a limitation on the number of persons an enterprise can manage directly. This limitation restricts the […]

Organisation and Departmentation | Management

This article throws light upon the six important approaches to organisation and departmentation. The approaches are: 1. Functional Departmentation 2. Product Departmentation 3. Territorial (or Location) Departmentation 4. Customer Departmentation 5. Process (or Equipment) Departmentation 6. Project Departmentation. Approach # 1. Functional Departmentation: Probably the most common approach to organising is functional departmentation. An organisation […]

Departmentation: Meaning and Means

After reading this article you will learn about the meaning and means of departmentation. Meaning of Departmentation: The term department designates a distinct area, division or branch of an organisation over which a manager has authority for the performance of specified activities. A department, as the term is generally used, may be the production division, […]