Departmentation by organization enterprise functions

The constituent element of a system are linked together in such complex ways that actions taken by one producer have far reaching effect on others. This type of departmentation provide the benefits of both functional and product structures. Territorial grouping may sometime cause some problems if authority over financial matters is also decentralized.

Span of management, also known as span of control refers to number of subordinates directly reporting to a manager, whom the manager can efficiently and effectively supervise and control. Aims of Departmentation 3. The following points must be taken into consideration while building organizational structure.

When the products are offered to an extensive market through numerous channels and outlets, it has the special merit of supplying goods according to the peculiar needs of customers.

Departmentation: Meaning, Aims and Methods | Management

Merits of Departmentation by Product: In an attempt to ensure that the entire organization work as a team there is the need to link together the activities of one geographic area to the activities operating in another geographic area.

Organisation is tool of achieving objectives of an enterprise. Functional Organisation Structure diagram. What is the ideal span of Management.


A project structure has no formal departments where employees can go back at the completion of a project. Another important of an ideal organisation is that there exists the necessary provision for development and expansion so that it is possible to expand and develop any organisation according to needs and requirements and necessary changes an alternatives may be made.

Departments can be established on different basis. The chain of command is also clearly stated. When the division is based on the geographical area, it is called as territorial departmentalization. Grouping process is called departmentation. The equipment can be economically used to their maximum capacity.

Attention is given to product lines, which is good for further diversification and expansion. Since every enterprises aims at creating or producing something that is desirable by others the basic enterprise functions are: Over specialization reduces this support and cooperation.

System concepts recognize that organizations are made up of components each of which has unique properties, capabilities and mutual relationship.

Loss of control over activities performed outside.

Principles and Practices of Management

This will ensure specialization and specialization will lead to efficiency, quality and elimination of wastage etc. Merits Limitations — Better flexibility to respond to environmental challenges.

6 Different Basis of Departmentation in an Organisation

An ideal organisation must possess effective system of communication. Benefits of specialization can be obtained. Hence, departmentation or grouping of activities into departments is very essential because it limits the number of subordinates man power to be supervised by a manager; it would have otherwise been very difficult to manage a team of large number of subordinates by a single superior and thus the size of the business enterprise would be very limited.

Since organizing demands designing the internal structure of an enterprise or any organization it needs the conceptual skill of the manager.

Departmentalisation is the process of breaking down an enterprise into various departments. Departmentation by Functions in management On the basis of functions undertaken by an enterprise, departments are created; This is a process of uniting people with similar activities to perform.

Meaning of Organisation: Organisation is the foundation upon which the whole structure of management is built. Organisation is related with developing a frame work where the total work is divided into manageable components in order to facilitate the achievement of objectives or goals.

Departmentalization is a process used to classify the functions, activities and people of the enterprise into different units with an aim of increasing the efficiency of the management and maintaining control.

There is a long-standing discussion throughout the world that delves into whether you are born predisposed to become an entrepreneur or is it necessary for. departmentation by functions of departmentation and explain Answer: Departmentation Departmentation enables an organization to avail the benefits of specialisation.

Definition, Meaning & Characteristic of Organisation

Departmentation by by by by Enterprise Territory or geography Customer Group Product1/5(1). Jun 06,  · Get Access to + free MBA Resource.

Departmentation: Its concept, Structure, Benefits and other Details

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Departmentation by organization enterprise functions
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What is Departmentalization? definition, objectives and methods - Business Jargons