Departmentation by organization enterprise functions

Structure is a means to an end and therefore, must aid and facilitate the organistic members to carry out the organisation work.

Departmentation by organization enterprise functions

Departmentation by organization enterprise functions

So, in this way, the entire organization is divided into parts, i. In a corporate ladder, every level below the top is departmentalized, and each subsequent level is further differentiated into departments.

The top-level executives, groups activities in various departments, such as production, marketing, finance, human resource, research and development, etc.

ADVERTISEMENTS: This article throws light upon the six different basis of departmentation in an organisation. The basis are: 1. Departmentation by Function 2. Departmentation by Products 3. Departmentation by Territory/Geographic Departmentation 4. Departmentation by Customers 5. Departmentation by Process 6. Combined Base. Basis of Departmentation # 1. Departmentation By Organization Enterprise Functions One reason organizations exist is to do things that would be hard for one people to do by themselves. For example, it's hard to conceive of one person building an office building. Departmentalization is a process used to classify the functions, activities and people of the enterprise into different units with an aim of increasing the efficiency of the management and maintaining control.

These departments are headed by senior executives, called as managers of the respective department. The departmental managers can delegate tasks and duties to the subordinates, and they are accountable to the chief executive for the performance of the department.

Objectives of Departmentalization To simplify the process and operations of the organization To maintain control Departmentalization of activities results in the increase in efficiency of the management and ultimately the enterprise.

It is helpful in fixing responsibilities and accountability. Methods of Departmentalization Departmentalization by Function: When the creation of department is on the basis of specified functions, such as production, marketing, purchase, finance etc.

In this method, all the activities related to a function or which are of similar nature are combined in a single unit, to give proper directions to the entire group in one go.

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In departmentation by the process, the activities are grouped as per the production processes. These departments require manpower and material so as to carryout operations. When the activities related to product development and delivery are combined into a particular division, it is called as product departmentalization.

It is appropriate for large-scale multi-product enterprises. The grouping of the organization according to the different classes of customer or clients. It focuses on special customer needs. When the division is based on the geographical area, it is called as territorial departmentalization.

This is suitable for the organizations, that have widespread operations at different locations. In project departmentalization, the organizational activities are classified by differentiated or special ventures or activities. The choice of departmentalization basis is influenced by the factors such as the degree of specialization, coordination, control, cost consideration, adequate attention to key areas, etc.Departmentation by Functions in management On the basis of functions undertaken by an enterprise, departments are created; This is a process of uniting people with similar activities to perform.

Departmentalization is a process used to classify the functions, activities and people of the enterprise into different units with an aim of increasing the efficiency of the management and maintaining control.

Methods of Departmentation (6 Methods)

ADVERTISEMENTS: This article throws light upon the six different basis of departmentation in an organisation. The basis are: 1. Departmentation by Function 2.

Departmentation by organization enterprise functions

Departmentation by Products 3. Departmentation by Territory/Geographic Departmentation 4. Departmentation by Customers 5.

Departmentation by Process 6. Combined Base. Basis of Departmentation # 1.

SECOND SEMESTER. BBA (CAM) MARKETING MANAGEMENT. Course Code: BBA (CAM) - L: 4 T/P: Credits: 4. Course Objective. The objective of this paper is to identify the foundation terms and concepts that are commonly used in marketing. Read this article to learn about “Departmentation: Its concept, Structure, Benefits and other Details!” The functions may change according to the objectives of that particular organisation.

The main merit behind this kind of structure is to achieve size advantage by putting people with common stills and organisations into similar units. Departmentation By Organization Enterprise Functions One reason organizations exist is to do things that would be hard for one people to do by themselves.

For example, it's hard to conceive of one person building an office building.

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