Archive | Departmentation

Notes on Departmentation: Meaning, Importance and Basis | Organisation

After reading this article you will learn about:- 1. Meaning of Departmentation 2. Importance of Departmentation 3. Basis. Meaning of Departmentation: Departmentation is the foundation of organisation structure, that is, organisation structure depends upon departmentation. Departmentation means division of work into smaller units and their re-grouping into bigger units (departments) on the basis of similarity […]

Difference between Functional and Divisional Departmentation

This article will help you to differentiate between functional and divisional departmentation. Difference # Functional Departmentmentation: 1. Basis: In functional departmentation, departments are created on the basis of functional areas (production, marketing etc.) 2. Specialisation: It is with respect to activities of all products. Production activities of all products (one or more) are looked after […]

Choosing a Basis of Departmentation: 8 Factors

This article throws light upon the eight main factors to be considered while choosing a basis of departmentation. The factors are:  1. Work and Process 2. Specialisation 3. Capabilities of Workers 4. Technology 5. Competitors’ Approach 6. Co-Ordination and Control 7. Environment 8. Optimum Utilisation of Resources. Factor # 1. Work and Process: Departments should […]