Departmentation means the division of work into smaller units and then rejoining these units into bigger units on the basis of similarities. Each unit is known as departments. Each department is organized and supervised by a person known as the departmental head.
ADVANTAGES OF DEPARTMENTS:
Specialization in work- Due to departmentation, people perform one task again and again which led to specialization in the work.
Easy to handle- Another advantage of departmentation is that it becomes an easy task for departmental head to handle the work which led to efficiency in operations.
DISADVANTAGES OF DEPARTMENTS:
Bordem:- Departmentation leads to boredom as they perform one type of task over and again. Hence they got few or no opportunity to explore more things.
Limits development of general managers:- According to a recent study, it has been shown that there is no scope for developments of managers as they handle same work over and again.
VARIOUS TYPES OF DEPARTMENTATION:
FUNCTION- WISE DEPARTMENTATION:
Function- wise departmentation means the division of work into smaller units and rejoining them on the basis of similarity of work. For example- Production department will include tasks related to production while tasks related to marketing will be included in the marketing department. Usually small companies uses this approach.
PRODUCT- WISE DEPARTMENTATION:
Product-wise departmentation resorts where specialization is required in respect of specific products of the company. This type of structure is usually used by companies dealing with manufacturing of various products. For example- A company dealing in soaps, face powders and perfumes. Then all activities related to soaps will be included in one department.
DEPARTMENTATION BY CUSTOMERS:
This type of departmentation places greater emphasis on customers and distinguishes one type from another. For example- Division could be on the basis of industrial buyers, wholesale buyers, government buyers etc.
This types of departmentation are generally adopted by large-scale companies. Purpose of this type of departmentation is to have a better face to face communication with the local interest in mind.