Types of Departmentalization Departmentalization is the process of creating specific departments for activities having a similar nature. It aims to make activities simpler and bring efficiency to the course of work done. There are different types of departmentalization following which you can create different departments in the organization. The common types, also called methods, or…
What is Customer Departmentalization? Customer departmentalization is a strategy to design an organizational structure in which departments are created on the basis of the nature of customers or the needs of customer groups. Here, for different customers ‘ needs, various departments are created. The main objective of adopting customer departmentation lies in the concept that…
What is Process Departmentalization? Process departmentalization is a method of creating an organizational structure in which the departments are created on the basis of the production process of the product. As it is obvious that the production process to make the final product consists of different stages. As such departments can be created on the…
What is Departmentalization By Function? Departmentalization by function, also called, functional departmentalization is the most common form of departmentation. It is the process where one type of activity with a similar nature is grouped into one unit/department and other types of activities into other departments. Functional departmentation promotes division of work and provides benefits of…
What is Departmentalization by Time? Departmentalization by time is an organizational structure-creating method in which departments are created on the basis of time to perform the activities. Usually, the departments are created on time to work as day shift, morning shift, evening shift, night shift, and so on. According to the shift, a separate department…
What is Departmentalization By Geography? Departmentalization by geography/territory is a method of designing an organizational structure in which various departments are created based on geographic locations. Jobs are grouped for different geographical territories. Geographic areas can be districts, countries, provinces, continents, etc. This method of departmentation is suitable for organizations whose operations are spread over…
What is Departmentalization by Product? Departmentalization by product/service is an organizational structure in which different departments are created in the organization based on the nature of products or product lines. Every product or product line has its own team or department where all members contribute toward product finishing and sales. The main objective of product…
In organizations there exist different types of work that requires various types of skills, knowledge, experience, and attitudes to accomplish. It is not possible for a single person to complete all those work even in a single team. For effectiveness in those jobs, it requires creating different units/departments having similar natures which is called departmentalization….