A Presentation On Organizational Structure: Departmentation . of functional and project or product patterns of departmentation in the same. Departmentation – Management. 1. DEPARTMENTATION 2. INTRODUCTION Departmentation is a part of the organizationprocess. Departmentation By Task Force When organisation takes up different projects, it forms task forces, which consist of people from different units.

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You must reload the page to continue. Development is projeft due to two factors. The stems of growing startups: Different local conditions can create problems of understanding. This method is suitable for large-scale organisations who can afford its cost.

Notes on Departmentation: Meaning, Importance and Basis | Organisation

For instance, a large readymade garment store may have a separate department each for men, women, and children. Top managers find it difficult to hold accountability of any one department for failure of the product in the market. What is IS risk management? However, there is a theory developed depqrtmentation James Thompson about what is the best way to do it. Each geographic unit has resources to cater to the needs of consumers of that area.

Components of pay for performance. People working in one department are closely knitted and work collectively towards achievement of departmental goals. When work is done. Specialisation promotes efficiency, lowers the cost of production and makes the products competitive. The mind of the entrepreneur: Securing and managing external relationships Learning objectives.

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This method of departmentation is used in situations where work is done round the clock because: Organizational stages of growth. Growth strategies for start-ups Learning objectives. Demand for the same product for same set of consumers differs during different times.

Leveraging with information technology Learning objectives. Each division may be sub-divided into production, sales, financing, and personnel activities. Dependence on third parties. Efficiency can be achieved if departments are created for each process as each one has its peculiarities.

Since each department has auxiliary departments like personnel, accounting etc. Janet Forrester Start Quiz. There are opportunities to improve performance in their area of specialisation. For example, a large cloth store may be divided into wholesale, retail, and export divisions.

The enterprise may be divided into departments on the basis of functions like production, purchasing, sales, financing, personnel etc. They are tightly organized units under the direction of a manager with broad powers of authority. The use of matrix structure should be justified in terms of cost, efficiency, and organisational development. Rather than A a worker handling step 1, B handling step 2 and C handling step 3, A may carry out all the steps on product X, B carries out the same set of steps for product Y and C for product Z.

Large firms usually employ a variety of departmentation styles, selecting the most appropriate form for each subsystem. Repeated handling of the same job with a very short cycle time required to complete that process leads to boredom. Projects and task forces or teams are generally unique—designed to work on a nonrecurring project.


The costs and revenues of all the products can be compared. It is obviously not possible for one functional manager to manage efficiently such widely spread activities. What would happen if we did it randomly, without regard for tasks? Each product division is semi-autonomous and contains different functions. Are entrepreneurs born or made? Identifying buyers as industrial and non-industrial is not very easy.

Product departmentation, along with various functional areas appear on the organisation chart as follows: Inadequate or incorrect internal accounting. There are four kinds of increasingly tight interdependence: Elements of departmentatiob globalization.

Notes on Departmentation: Meaning, Importance and Basis | Organisation

Association for Small Business and Entrepreneurship annual conference, Baltimore, Maryland, October A firm’s structure might be influenced by some or all of these types of departmentation.

Some practical advice for start-ups. Corporate Social Responsibility and sustainable development in the global environment. The international marketing plan. This still leaves a lot of possibilities. Functional departmentation can be used for any type of organisation. Departmentation helps in sharing resources according to departmental needs. The local managers are more familiar with the local customs, preferences, styles, fashion, etc.

Host country research and cultural implications.