The important methods of grouping activities into departments may be summed up as follows: 1. By Enterprise Functions 2. Departmentalisation by Products 3. Departmentation by Customers or Markets 4. Departmentalisation by Territory 5. Departmentation by Process. Method # 1. By Enterprise Functions: The most simple and common type of organisation consists of grouping of all similar activities of the business [...]
After reading this article you will learn about:- 1. Meaning of Departmentation 2. Aims of Departmentation 3. Methods 4. Advantages. Meaning of Departmentation: When the size of an enterprise grows, the number of employees (persons) also increases. There is a limitation on the number of persons an enterprise can manage directly. This limitation restricts the size of enterprise if the [...]
This article throws light upon the six important approaches to organisation and departmentation. The approaches are: 1. Functional Departmentation 2. Product Departmentation 3. Territorial (or Location) Departmentation 4. Customer Departmentation 5. Process (or Equipment) Departmentation 6. Project Departmentation. Approach # 1. Functional Departmentation: Probably the most common approach to organising is functional departmentation. An organisation that exhibits functional departmentation has [...]