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What are the four bases of Departmentation?

What are the four bases of Departmentation?

Common Bases For Departmentation

  • Knowledge and Skill. People are grouped by what they know.
  • Work Process. Workers are grouped based on the process or activity used by the worker.
  • Business Function.
  • Time.
  • Output.
  • Client.
  • Place.

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 are the four major ways to Departmentalize an organization?

Each of these structures provides different degrees of four common organizational elements: span of control, departmentalization, centralization, and decentralization.

What is the main basis 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 7 bases of Departmentation?

Bases of Departmentation

  • Functional basis.
  • Territorial basis.
  • Process basis.
  • Product basis.
  • Customer basis.
  • Time basis.
  • Number basis.

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 five common forms of departmentalization?

The primary forms of departmentalization are by function, process, product, market, customer, geographic area, and sometimes matrix (also called project organization).

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 are five ways to Departmentalize?

There are basically five types of departmentalization in organizations. The five types of departmentalization are: functional, product, customer, geographical and process. Most companies practice functional departmentalization.

What are the dangers of Departmentation?

Dangers of Departmentation:

  • Dividing the business house into various departments makes the co-ordination of various activities very difficult.
  • Departmentation creates difficulties of communication among the various departments of the organisation and renders planning and control more difficult.

What are the four bases of departmentalization?

Image: http://lisamarierobinson.wordpress.com/tag/departmentalization/. There are four common bases for departmentalization. They include functional departmentalization, product departmentalization, customer departmentalization, and location departmentalization.

Which is the best base of departmentation?

Some of the bases of departmentation are:- 1. Functional Departmentation 2. Product Departmentation 3. Territorial Departmentation 4. Customer Departmentation 5. Process or Equipment Departmentation 6. Departmentation by Marketing Channel 7. Departmentation by Time 8. Composite or Combined Departmentation 9. Numerical Departmentation.

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.

Which is the best example of geographical departmentalization?

ABC Company is a multinational Company with its offices in the United States and India. It has created several departments because of the different geographical locations and because it needs to carry out systematic and specific work functions. These are examples of Geographical Departmentalization and Functional Departmentalization, respectively.