Base,Method,Type of Departmentation

 There are many bases,methods,types of Depatmentation.Some bases are as below-

1.Departmentation by Function-It is the first base of departmentation.There are a number of functions every organisation performs.These functions are production,demand,forcasting,supplying,pricing,advertising,ware houseing,communcating,trading,distributing,financing and so on,The process in which we perform departmentation according to performing function this type of departmentation is called departmentation by function.

Merit-

1.It is a logical method.

2.It is based on principle of specialization.

3.It helps to define authority and responsibility.

4.It helps effective controlling.

5.It is beneficial for large scale company.

Demerits-

1.Employees do best for their function.They do not do best for the growth of organisation.

2.There is maximum problem in coordination between two departments.

3.Top class managers are responsible for every problem of department.

4.It is not useful small scale organisation.

5.It is not useful trading organisation.

2.Departmentation by Territories-

It is the second type of departmentation.It is the best for the organisation that performs their function in large area/country/continent.

The process in which organisation performs their departmentation on the basis of their area this process is called departmentation of territories

Merit-

1.It provides maximum satisfaction to customers.

2.It increases the transaction of organisation.

4.It helps to promote ralented employee.

Demerits-

1.It requires more human resource force.

2.There is maximum problem in coordination between two departments.

3.It is not useful for small scale organisation.

4.It is not beneficial for trading organisation.

5.It is not beneficial for financial organisation.

3.Departmentation by process-It is also an important type of departmentation.It is also called Equipment departmentation.There are many activities of manufacturing.These activities are assembly,handling,storage inspection etc.The process in which departmentation is done according to common activities of manufacturing this departmentation by process.

Merits-

1.It is manufacturing base departmentation.

2.It makes manufacturing maximum.

3.It decreases per unit cost of product.

4.It utilises machine maximum.

5.It maintain the features of product.

Demerits-

1.It is not used in service provided organisation.

2.It is not used large scale organisation.

3.It is not beneficial for trading organisation.

4.It is not beneficial for financial organisation.

5.It is not beneficial for one product producing organisation.

4.Departmentation by product-

It is also an important type of departmentation.It is production base approach.Many organisations produce many products.There are many activities common  in production process.The process in which departmentation is done according to common activities of production process this departmentation is called departmentation by product.

Merite-

1.It increases the production of organisation.

2.It makes activities more effective,efficient.

3.It establishes better coordination among departments.

4.It maintains the features of product.

5.It helps to decide the responsibity of managers.

Demerits-

1.It is not applicable in service sector.

2.It is not applicable one or two producing organisation.

3.It is centralised system.

4.It is not beneficial for trading organisation.

5.It is not beneficial for financial organisation.

5.Departmentation by customers-

It is also an important type of departmentation.Customers are one of key elememts of business.The departmentation in which customers are classified according to their contribution for thr growth of organisation this type of departmentation is called depaetmentation by customers.

Merits-

1.It gives maximum satisfaction to customers.

2.It is very useful in highly compatative market.

3.It cares customers maximum.

4.It helps to grow organisation..