Question

suggest a method of departmentation for a large multi product organisation with a huge market spread over the whole country

Answer 1

The basis for that are :

1) Department by function
2) Departmentation by products
3) Departmentation by territory/ Geographic Departmentation
4) Departmentation by customers
5) Departmentation by process
6) Combined Base

Answer 2

In a large multi product organization responsibility is divided on the basis of:

i. Functional Departmentation

ii. Product wise Departmentation

iii. Territorial or Geographical Departmentation

iv. Customer wise Departmentation

v. Process or Equipment wise Departmentation

vi. Combined or Composite Form of Departmentation

A large multi product organization with a huge market spread over the whole country can adopt territorial or geographical departmentation. The activities related to a particular area or zone can be grouped together under one zonal manager or head. So there can be a separate manager for the North zone, South zone, East zone and West zone.

There can be further sub-division of activities under the zonal manager as follows:

i. Production department

ii. Marketing department

iii. Accounts department