Activities can be grouped according to function work being done to pursue economies of scale by placing employees with shared skills and knowledge into departments for example human resources, IT, accounting, manufacturing, logistics, and engineering. Functional departmentalization can be used in all types of organizations.
In departmentalization, works are divided into different departments on the basis of their nature and responsibility is entrusted to skilled and efficient manager.
When a manager is involved in one specific function, his expertise and efficiency increases in that particular field. Administrative control In departmentalization, the standard of performance of each department and objective to be achieved is planned.
|Types of Departmentalization||Decentralized Organizational Structure Departmentalization is an aspect of organizational design where a business divides its staff into smaller units based on tasks within the company.|
When actual performance deviates with planned performance, corrective measures are taken to remove the barriers. Fixation of responsibility Departmentalization divides works into different units on the basis of nature and responsibility is entrusted to departmental managers.
And the departmental managers are accountable to the job performed by the staff of their concerned departments. Helpful for expansion Departmentalization facilitates top manager to direct and supervise the work performed by subordinate managers.
It also helps to divide work into different units on the basis of nature, and responsibility is entrusted to departmental managers. Such division of work, thus, is helpful for expansion of business. Management development Departmentalization helps to develop new managers by providing them opportunity to take independent decision and initiatives.
Consequently, a high skilled subordinate level manager can get opportunity to promote to the higher level. Types of Departmentalization Departmentalization by function This is common and popular basis of departmentalization of an enterprise.
Under this form, various departments are created on the basis of nature of functions to be performed like production, marketing, finance, personnel etc.
A departmental head or manager is appointed to supervise and control the activities of the concerned department. All departmental heads are specialists and experts in their own area of business. When workload of a particular department becomes more, a department may again be classified into sub departments.
Since the members working in a department have similar background and interest, it gives rise to specialization which makes manpower more efficient and skilled. Advantages of Departmentalization by Function It is most logical and natural form of departmentalization.
It brings about specialization which makes optimum utilization of human resources.
It lays emphasis on each and every activity. It enables top management to exercise control over a number of functions.
It facilitates delegation of authority and therefore, reduces the work burden of top manager. It eliminates the duplication of effort which brings efficiency.
Disadvantages of Departmentalization by Function There may be conflict between departments as the responsibilities are inter dependent. There may be difficulty in coordinating the activities of different departments.
There is over emphasis on specialization. It maximizes supervision cost. It is non responsive to environmental changes. It does not promote innovation and creativity. A separate department is created for a single product or product line and all functions like production, finance, marketing, personnel etc.
Each department is independent and responsible to improve and expand its business performance. The department manager is responsible for its expenses, revenue, profits, failure and success. Therefore, it facilitates to measure the managerial as well as operational result and contribution of each product line to whole organization.Departmentalization is an aspect of organizational design where a business divides its staff into smaller units based on tasks within the company.
Most companies, including restaurants, are likely to use two or more types of departmentalization at the same time. Organizing an organization through departmentalization is common. In this lesson, you'll learn what departmentalization is, some types of departmentalization, and its advantages.
Functional departmentalization is used to _____. A. divide an organization based on a group's activities B. divide an organization according to the specific product being created C.
divide an organization into departments that offer products to identifiable customer groups D. Functional departmentalization can be used in all types of organizations.. Product departmentalization – Grouping activities by product line. Tasks can also be grouped according to a specific product or service, thus placing all activities related to the product or the service under one manager.
if the type of departmentalization used by an organization tends to emphasize departmental units rather than the organization as a whole and decision making is slow, then these would be weaknesses indicative of ____ departmentalization.
Types of customers are the key basis of departmentalization of the enterprise. Banking organization create departments on the basis of customer service like deposit, cash withdrawal, letter of credit, loan etc. Similarly, a business organization may be divided into industrial product buyers and consumers product buyers.