A Presentation On Organizational Structure: Departmentation . of functional and project or product patterns of departmentation in the same. Departmentation – Management. 1. DEPARTMENTATION 2. INTRODUCTION Departmentation is a part of the organizationprocess. Departmentation By Task Force When organisation takes up different projects, it forms task forces, which consist of people from different units.

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After reading this article you will learn about: One manager can supervise and direct only a few subordinates. In such method of departmentation, the activities are grouped according to the type of customers.

A team is given a project with specific tasks or operational concerns.

It provides the advantages of specialisation required at each level of the total processes. CSR and the small business entrepreneur.

Departmentation by projects By OpenStax (Page 2/2) |

Step 1, Step 2, and Step 3. About the chapter editor.

Grouping by the basic function in the organization: In product departmentation, every major product is organised as a separate department.

Some of the important bases are given under. Cautions for introducing a pay system. Groups are formed in order to minister to people’s social needs. As organisations grow complex in terms of size and operations, they add more products to their line of products and expand into new geographical areas for marketing the existing products. This approach also encourages specialization, as within a central maintenance department there can be specialists for different kinds of problems.


On having this app for quite a bit time, Haven’t realised there’s a chat room in it. The organisation chart of departmentation by process or equipment in the manufacturing department of a textile industry has been shown in Fig. Product departmentation can be a useful guide for grouping activities in service businesses as well.

The administrative units so created may be designated as departments, divisions, units, branches, sections, etc. 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. Nature of work similarity depaartmentation dissimilarity of jobs, degree of needed interaction, and the extent of standardised procedures in use.

An organization can divide itself into departments any way it wants using any criteria it wants — there is no law about it. Grouping of activities and, consequently, of pproject, into departments makes it possible to expand an enterprise to any extent.

The same product may be of industrial use for one buyer and personal use for another. A bank may have separate loan departments for large-scale departmemtation small- scale businessmen.

If there are no departments, organisational resources; physical, prkject and human, will be commonly shared by different work units.


This offers the benefits of specialisation; efficiency and speed. The members of the team manage the project without direct supervision and assume responsibility for projetc results. Competitive advantage through human resource management. The emphasis is on selling in different regions according to customer needs. Thus, divisional structure includes different set of structures.

Departmentation: Its concept, Structure, Benefits and other Details

Political and legal risk for the small business entrepreneur. Grouping based on the type of clients their work is ultimately sold to. Giving and receiving feedback. Since similar activities are grouped in one department headed by departmental managers, it becomes easy for top managers to fix responsibility of respective managers for achieving the desired results. This is comparatively a costly basis of departmentation than functional departmentation because every department appoints people to look after specialised activities, like accounting, finance, marketing, personnel etc.


The main challenge in creating an organisation structure is to take into consideration the five dimensions. That is, operations which are team-interdependent should be grouped first i.

Growth strategies for start-ups Learning objectives.

When work teams function well, the need for a large number of supervisors decreases. This is more important to the organisation which operates in different geographical areas. Title Second Title Auto-number Force page peoject before topic.

According to the theory, there are 4 basic rational criteria for choosing the bases for departmentation:.

He cannot adapt the organisation to its internal and external environment. Branding coaching What is the brand advantage? Levels of Management inverse relationship between the span of control and number of levels in hierarchy in an organisation.