Explain departmentation

Decentralisation means diffusion of authority. Because each process requires different skills, process departmentalization allows homogeneous activities to be grouc c cped together. To departmentalise on product basis means to establish each product or group of closely related products in a product line as a relatively autonomous integrated unit within the overall framework of the company.

If a party to a contract does not perform, action can be taken only within the time specified by the Act. Decentralisation of authority is a fundamental phase of delegation and the extent to which authority is not delegated is called centralisation.

Organizing Function of Management Organizing Function of Management Organizing is the function of management which follows planning. Departmentation by Product This type of departmentation is desirable for large undertakings which deal with a variety of products or product lines.

The management of the enterprise is made more effective by departmentation. Departmentalization by process, on the other hand, seeks to benefit from the advantages that are found in high specialization, and tends to be very efficient in some instances.

Co-ordination between authority and responsibility - Relationships are established among various groups to enable smooth interaction toward the achievment of the organizational goal.

An enterprise where production is carried through different processes may adopt process wise departmentation to enable continuous flow of production. Large retail or marketing enterprises may also have process departments for receiving goods in stores, transportation, wrapping and delivery.

The basic enterprise functions generally consist of production, marketing, finance, etc. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern.

Functional departmentalization can be used in all types of organizations. It is a function in which the synchronization and combination of human, physical and financial resources takes place. Departmentation by Product Chart 5. Process departmentalization - Grouping activities on the basis of product or service or customer flow.

Under this method, the activities performed in each shift are similar and almost identical. The actual number of departments in which an enterprise can be divided depends upon the size of establishment and its nature.


Departmentation by Function The most commonly accepted practice is the grouping of the activities in accordance with the functions of an enterprise. Also, the high level of specialization is a barrier for the flexible reallocation of resources within the organization, i.

Discharge by performance — Discharge by performance takes place when the parties to a contract fulfill their obligations arising under the contract within the time and in the manner prescribed. Process or Equipment wise Departmentation. The aim is to facilitate the carrying out of the activities efficiently for achieving overall results.

Lastly, assignment of work to manageable units can be effectively made under divisionalised structure of organisation. Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments.

A sold a gold chain to B on credit without any period of credit, the payment must be made or the suit to recover it, must be instituted within three years from the date of delivery of the instrument.

Departmentation by Customer Chart 6.3. Territorial or Geographical Departmentation. 4. Customer wise Departmentation. 5. Process or Equipment wise Departmentation. 6. Combined or Composite Form of Departmentation. It refers to grouping the activities of an enterprise on the basis of functions such as production, sales, purchase.

Decentralization means diffusion of authority.

Methods of Departmentation (6 Methods)

The dispersal of authority of decision-making to the lower level management is termed as decentralization. Decentralisation of authority is a fundamental phase of delegation and the extent to which authority is not delegated is called centralisation.

Questions on Organizational Behavior. Prepared by Dr. Stephen Hartman, School of Management, New York Institute of Technology. 1. How have American companies suffered in recent years? In simple words, departmentation is the process of classifying and grouping all the activities of an enterprise into different units and sub-units.

The aim is to facilitate the carrying out of the activities efficiently for achieving overall results. Departmentalization is a method of dividing an organization into different departments, which performs certain tasks in accordance with the department's specialization.

Departmentation | Meaning | Bases | Relative Merits & Demerits

Organizations can. Departmentalization (or departmentalisation) refers to the process of grouping activities into agronumericus.comon of labour creates specialists who need agronumericus.com coordination is facilitated by grouping specialists together in departments.

Explain departmentation
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