Contents
What are the five bases of departmentalization?
The five types of departmentalization are: functional, product, customer, geographical and process. Most companies practice functional departmentalization. However, the most commonly used patterns of departmentalization are functional, geographical, divisional, hybrid and matrix.
What are the 4 bases of the department?
Bases of Departmentation – Key Ways in which an Organisation may Decide to Divide the Work
- Functional Departmentation:
- Product Departmentation:
- Geographic/Territorial Departmentation:
- Customer Departmentation:
- Process or Equipment Departmentation:
- Departmentation by Marketing Channel:
- Departmentation by Time:
What are the bases of departmentalization How does departmentalization help in improving business performance?
Departmentalization of activities results in the increase in efficiency of the management and ultimately the enterprise. It is helpful in fixing responsibilities and accountability.
What is an example of departmentalization?
Examples of functional departmentalization include; production department, finance department, marketing department, human resource (HR) department, etc. Here, all activities, which are directly or indirectly connected with production are grouped together to make a production department.
What is the most common form of departmentalization?
The most common way of process departmentalization is the division of the firm into business functions, such as purchasing, manufacturing, sales, accounting, etc.
What does Departmentation mean?
: the process of departmentalizing an enterprise for gaining efficiency and coordination : the grouping of tasks into departments and subdepartments and delegating of authority for accomplishment of the tasks.
What are the basic of Departmentation?
Basis of Departmentation # 1. Similar activities of a business are grouped into major departments or divisions under an executive who reports to the chief executive. This departmentation is most widely used basis for organising activities and is present in every organisation at some level (Fig. 6.6).
What are the four most common bases for departmentalization?
There are four common bases for departmentalization. They include functional departmentalization, product departmentalization, customer departmentalization, and location departmentalization.
What are the advantages of process departmentalization?
Process departmentalization is the practice of creating separate departments within a firm where each department specializes in one particular part of the production process. The greatest advantage to this sort of departmentalization is that it allows for specialization.
Which is the most common base for departmentalization?
They include functional departmentalization, product departmentalization, customer departmentalization, and location departmentalization. Functional Departmentalization is the most common base for departmentalization. Keeping this in consideration, what is the most common type of departmentalization?
What is the meaning of the process of departmentalization?
Departmentalization is the process by which jobs are grouped and allocated in different departments to different groups according to the need of the organization. In this process jobs are grouped according to some logical arrangement on the basis of functions, products or geographical requirements.
Which is the best description of functional departmentalization?
The bases or methods or types of departmentalization are listed as follows: Functional departmentalization. Process departmentalization. Product departmentalization. Geographic departmentalization. Customer departmentalization. Combined departmentalization. Time departmentalization.
When do you need to use departmentalization by product?
Departmentalization by Product: When the activities related to product development and delivery are combined into a particular division, it is called as product departmentalization. It is appropriate for large-scale multi-product enterprises.