Departmentation by marketing channels. A brief discussion of the above classified departmentation is given below: Type 1. Departmentation by Functions: The most commonly followed basis of departmentation is by functions. Under this departmentation, the activities are grouped on the basis of functions which are to be performed. According to George R. Advantages: i.

Author:Arashicage Neramar
Country:United Arab Emirates
Language:English (Spanish)
Published (Last):20 January 2014
PDF File Size:16.71 Mb
ePub File Size:8.66 Mb
Price:Free* [*Free Regsitration Required]

Nekazahn Functional organisation creates departments along prjoect or functions of the undertaking functions do not refer to managerial functions of planning, organisingstaffing, directing and controlling.

The firm itself is very small, comprises a few full-time core employees working from head quarters. For instance, if product C is a car, the department can be branched out for commercial car, luxury car, special utility vehicle etc.

Creating departments and departmental heads makes an organisation flexible and adaptive to environment. While marketing strategies for cosmetics need to be intensive, it is not so in case of stationery or pharmaceuticals. As the organisation grows in size, the work is divided into units and sub-units.

For a trader, the major activities are buying and selling, a bank performs borrowing and lending functions. Similar activities are housed in a department or under a single chain of command. Are entrepreneurs born or made? Need for and Importance of Departmentation 3. For instance, a large hospital could have an accounting department, surgery department, marketing department, and a satellite center project team that make up its organizational structure.

Departmentation: Its concept, Structure, Benefits and other Details Toyota has a vehicle for every market. If necessary, a major function may be divided into sub-functions. Projct merits and limitations of each one of the above have their own merits and limitations On the whole the merits and limitations of divisional structure have been shower in Table This develops their potential to be promoted to higher managerial positions in the organisation.

So, the basis of departmentation should ensure that the dissimilar activities are put together in one department. Departmentation by projects Skills for building positive relationships. In such method of departmentation, the pdoject are depzrtmentation according to the type of customers. Clarity of plans and Definiteness of Responsibilities supervision becomes easy and span may become wider. About this author and acknowledgements. These are as follows: Political and legal risk for the small business entrepreneur.

Global finance and the small business entrepreneur. Identifying buyers as industrial and non-industrial is not very easy. Why you have competitors or how buyers have managed to survive without your product and why you need buyers more than buyers need you.

A department created for satisfying customer requirements becomes specialized in that area resulting in cost efficiency. Departmentalisation : Meaning, Need and Types It is obviously not possible for one functional manager to manage efficiently such widely spread activities. Departmentation enables departmental heads to be creative in making decisions with respect to their departmental activities.

They are tightly organized units under the direction of a manager with broad powers of authority. Examples of successful business models. This promotes product specialisation which helps in product growth. Other factors affecting supply chain management. Title Second Title Auto-number Force page break before topic.

Product departmentation is grouping of jobs and resources around the products or product lines that a company sells. Most Related.


Departmentation: it’s Meaning and Definition – Explained!

Departments and levels emerge from the grouping of activities. The aim is to facilitate the carrying out of the activities efficiently for achieving overall results. It would have been a very difficult and complicated task to manage a large undertaking without divisionalisation. The creation of a series of smaller departments enables the executives to get them specialised within a narrower range of activity. This helps the organisation to assign the work only to those who are best suited.





Departmentation by projects


Related Articles