Question

Explain the methods of departmentation

Answer 1

Departmentation can be defined as a process of dividing small units of organizational activities. It is also  called division sections branch etc. it helps to provide the specialization, develops the skill and knowledge of manpower and the efficiency of manpower of an enterprise will be increased. It specifies the area of the activities that facilitate the managerial task.

The process of grouping of activities into units for the purpose of administration is called departmentation.

The administrative units are called divisions, units or departments. The followings are the basis of departmentation:


(a) When departmentation is done on the task of functions the departments created are production, marketing, accounting, and finance and personnel departments.


(b) When departmentation is done on the basis of geographical area, the departments are known as eastern department, western department, northern and southern department.

Answer 2

Answer:

Types of Departmentation – Functional, Product, Geographical, Customer, Process or Equipment, Project or Matrix Departmentation, Team Structures and a Few Others. Departmentation is the way in which an organization groups its various activities. There are many ways in which organizations can be departmentalized.