Departmentation or departmentalization

Departmentation fixes the responsibilities to the managers or in charge of the concern departments.

Types/Forms/Methods of departmentation

There are different basis or methods of departmentation some of the importance methods are:-

I)             Departmentation by functions/Functional department

II)            Departmenation by product or product wise department

III)           Departmentation by territory/Geography

IV)          Departmentation by customers

V)           Departmentation by time

VI)          Departmentation by process

VII)         Departmentation by sequence

VIII)       Departmentation by numbers

(I)            If the departments of an organization are formed or established on the basis of major functions to be conducted by the organization than such types of departmentation is known as functional departmenational. In this type the functions of an organization are monitors look and manage properly and e.g. of functional department

(II)          If an organization produces or deals more than one product or a variety of products, in such cases product departmentation can be formed. It is popular and useful to diversify the products.

(III)         If the operation of a business organization is spread over a large geographical or territorial reason or area than such business organization an make departments on the basis of territory or geography. This types of departmentation helps the organization to make closed relationship with the customers, to adjust local environment and to match with the local religions, language, tradition etc. e.g.

(IV)        If an organization creates its department on the basis of customers to fulfill the demands, expectation or desire of customers more effectively and properly than such organization can formed customer wise departmentation. Since customer is regarded as the king of the business, customers should be focused properly present business era -o'u_ is customer centric era.

(V)          If a business runs continuously or without only breaks then such organization can adopt time wise departmention. Manufacturing concerns, hospitals and nursing homes, utility service provides etc may establish their department on the basis of time.

(VI)        If an organization established its departments on the basis of process or steps of activities than it is called process wise departmention. Generally manufacturing units adopt this types of departmentation.

(VII)       A sequential departmentation adopts alphabetical or numerical sequence as the basis of departmentation. A commercial bank may adopt sequential departmentation in its deposit and without functions and e.g. is

This types of departmentation is followed by those organization where numbers of

members or employees or customers are in large numbers and personal business is

tried to be ignored.