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Importance And Importances Of Departmentation

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DEPARTMENTATION MEANINGS:
The base of structure of an organization depends on the departmentation. Departmentation means dividing the work into smaller parts and then regrouping them into bigger parts called department. This division is done on the base of same features of those parts.
DEFINITION OF DEPARTMENTATION:
According to Pearce and Robinson to group the work, methods and resources into logical parts to perform some organizational task is called Departmentation.
IMPORTANCE OF DEPARTMENTATION:
Some of the points which describes the importance of organization are given below: o Organization Structure:
Dividing the work into units and sub units is known as departments. The people who manage these departments are called managers and …show more content…

It becomes easy to work and perform assigned responsibilities for individuals and make changes when organization is divided into departments.

o Co-ordination:
Creation of departments lead to the unity and coordination of the workers o Specialization:
When work is divided into departments it leads to specialization. Because due to this division people in that very department repeatedly perform their assign works and become specialist on those works and activities.

BASIS OF DEPARTMENTATION:
There are six bases of departmentation:
i. Functional Departmentation. ii. Product wise Departmentation. iii. Territorial or Geographical Departmentation. iv. Process wise Departmentation.
v. Customer wise Departmentation. vi. Time wise Departmentation.

i. FUNCTIONAL DEPARTMENTATION:
Functional Departmentation is grouping of tasks according to functions of management. Some of the basic functions of the organization are finance, purchasing, accounting, marketing and production. In each department, again sub-departments can be established.

Figure 1-Departmentation by Function.

Advantages of Functional

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