DEPARTMENTALISATION

Definition:
Horizontal Differentiation of task or activity into discrete segments is called
departmentalization.
It also refers to grouping activities in different departments; we can also call it as
division of work.

Basics of Departmentalization or means of departmentalization:

The means of departmentalization can be used by organizer in constructing an
organization structure; some of them are as below:

1. Departmentalization by function:
Activities can be grouped according to function to peruse economic scales &
placing employee in different department as their capability & knowledge for E.G.
Marketing department, H.R department, I.T department etc. Functional
departments can be used in all types of organization.

2. Departmentalization by product:
Some large organization has to adopt this approach. It is possible that one
organization manufacturers many other products, so, there should be different
departments for each product so as to be specialized. For E.G. Godrej company
have many products like Fridge, Shaving cream, etc.

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3. Departmentalization by customer:
All people have different types of needs, so accordingly there should be different
department, for e.g. there is different departments in bank for sanctioning loans
because there are different people some of them would take car loan or Home loan
so, there should different departments in bank for all types of needs.

4. Departmentalization by region:
Large organization has to follow this mean for convenience. For e.g. one company
is carrying out business activity in all country so there should be different
department geographically like South region, East region we can take e.g. of Indian
Railways.

5. Departmentalization by time:
It is not possible that only one department will carry on business activity the whole
day, there is need of different shift for e.g. Night Shift & morning shift etc. it is
called departmentalization by time.

6. Departmentalization by process:
Certain products have to be passed from different department for being ready, for
e.g. a cloth needs to be pass from different machines in order to be ready in
furnished cloth.

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7. Organization Structure:

Structure of organizing is two – dimensional.

Vertical Organization structure: Hierarchically structured organization where all
management activities are controlled by a centralized management staff. This is
traditionally type of organizing structure. Here higher the level greater the
authority.

Horizontal Organization Structure:

A horizontal organization structure is also called as flat organization structure. It is
just opposite of vertical organization structure. In this structure feedback & opinion
of employees are taken into consideration. Decision making process involves
employee also.

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