After reading this article you will learn about the merits and demerits of network organisation. Merits of Network Organisation: Network organisation has the following merits: 1. It is very wide in scope. It can link subsidiaries across the world with the head office. Though subsidiaries are linked with the head office, most of the decisions are taken by subsidiaries at [...]
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 be created on the basis [...]
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 of features. As the organisation [...]