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 […]
Difference between Functional and Divisional Departmentation
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Choosing a Basis of Departmentation: 8 Factors
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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 […]