Departmentalization by Product: These types of departmentalization are eminently to a notable degree: very suited to large enterprise manufacturing a variety of products. Under this method products or product lines from the basis of departmentalization. All functions relating to one product or product line are brought together under one department or division. Each division looks after the production, marketing, finance and personnel functions of one product.
These types of departmentalization are suitable for organizations having diversified and large product line or service. It is also suitable when the product lines differ greatly with respect to marketing expertise, production technology, and customers.
The main focus of this form of departmentalization is to serve different types of clients or customers effectively. Departmentalization by Territory: Departmentalization can also be done on the basis of territory or geographic locations.
It is useful to a large scale enterprise whose activities are widely geographically dispersed. Banks, insurance companies, etc. Under this type of departmentalization, activities are grouped into regions, zones, branches etc. Departmentation by process: This method of Departmentation is implemented in such organization, were production activities need some distinct processes.
Specially, this method is used in large scale manufacturing concerns such as textiles, cements, chemicals, medicines, etc. Departmentation by Time: Departmentation can also be done on the basis of time. For the organization having the nature of providing 24 hours of services, it becomes suitable to establish different departments on the basis of time. Generally, hospitals, hotels, telecommunication, electricity and other public utility companies which work around the clock are made departments on the basis of time, such as day, evening and nightshift.
Learn App Development on FlutterCampus. Departmentalization : Meaning and Method - Organizing Organizing. Matrix departmentalization attempts to combine functional and task force project departmentalization designs to improve the synchronization of multiple components for a single activity i. The planning task force is most often formed when the organization requires addressing special circumstances.
It is more preferable, and efficient than maintaining a different planning staff or department. The terminology may vary from firm to firm, and in non-business organizations, the functions may be more obscure i. Why are these three activities fundamental? Most companies are concerned with producing a product or service for use by others. Also to produce and to distribute the product or service necessitate raising and maintaining sufficient capital; that is, the financing activities must be performed by some members of the enterprise.
The scope of the three fundamental organization units and the complexity of the enterprise give rise to additional organization units. These types result mainly from such things as the nature and amount of the work to be done, the degree of specialization practiced, and the people and the workplaces available for the work. Under the fundamental unit of marketing, the scope of the work may be so broad that it is believed advantageous to divide the work into advertising, sales promoting, and selling.
A sales manager is appointed to manage the selling work in the field. These three additional units appear in the organization structure at the level immediately below that of the fundamental unit of sales.
In like manner, assume that the manager in charge of production has established units of engineering and research, factory work, and also purchasing. As was stressed in the discussion of division of labor, an organization must be viewed by all managers at all levels as a cohesive whole, never as separate, independent functional units. The organization is a system of integrated parts, and to give undue emphasis to any functional part at the expense of the entire organization creates organizational islands, thus resulting in inefficiency and significant behavioral problems.
Astute managers must recognize the potential for these gaps to exist and their actual existence and develop programs to integrate supportive functions to accomplish overall organizational objectives.
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