A Presentation On Organizational Structure: Departmentation . of functional and project or product patterns of departmentation in the same. Departmentation – Management. 1. DEPARTMENTATION 2. INTRODUCTION Departmentation is a part of the organizationprocess. Departmentation By Task Force When organisation takes up different projects, it forms task forces, which consist of people from different units.

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This approach also encourages specialization, as within a central maintenance department there can be specialists for different kinds of problems.

An organisation where the basis of departmentation is to sell goods according to customer needs justifies its existence. Global finance and the small business entrepreneur. People working in one department are closely knitted and work collectively towards achievement of departmental goals.

Departmentation: Its concept, Structure, Benefits and other Details

Forms of investment and risk. Creating an appropriate appraisal process. Summary of IS risk management. Manufacturing paper, for example, requires processes like crushing the bamboo, making pulp, purifying the pulp, making paper rolls, and cutting it into rims.

Corporate Social Responsibility and sustainable development defined. Since decisions are made by departmental heads for their respective departments, it pdoject delay decision-making for the organisation as a whole.

Departmentation by projects | Open Textbooks for Hong Kong

For example, a big company with a diversified product line may have three product divisions, one each for plastics, chemicals, and metals. You must reload the page to continue. Importance and goals of competitive intelligence. The foundation of matrix is a set of functional departments. Large firms usually employ a variety of departmentation styles, selecting the most appropriate form for each subsystem.


Water-tight compartments are sometimes created amongst departments as people show departmentwtion towards their departmental managers. Marketing managers have to balance pdoject time and money spent in framing policies so that organisation can adapt to the changing departmentztion environment. Inventory reduction to expose waste. Organizational stages of growth. Every product manager wants to maximise profits of his product, for which he delegates authority to people of his department and establishes authority-responsibility relationships amongst them.

One of three strategic functions.

Need for and Importance of Departmentation 3. Matrix structure provides the benefits of both functional and divisional and it is known as Matrix structure and minimises the limitations of the two. For example, computer companies often have different sales departments for home, small departnentation, educational, government and large business customers.

The members of the team manage the project without direct supervision and assume responsibility for the results. Have a cross-functional steering committee set priorities. Territorial departmentation offers certain facilities in operation.

When work is done. The grouping of all milling machines into one department or the placing of lathes in another department is illustrative of departmentation by equipment or process. Similarly, a printing press may have composing, proof reading, printing and binding departments.


Departmentation should be adjusted according to the available resources. An organisation can be departmented on different bases depending upon its needs.

Host country research and cultural implications. Strategic versus tactical operations decisions. The stages of going international. Selecting and managing your team Learning objectives. A project structure is an advanced type of matrix structure. To survive and grow two or more people working together must organise themselves to achieve common objectives. The functions may change according to the objectives of that particular organisation.

Harnessing technology for global business success. Functional organisation creates departments along activities or functions of the undertaking functions do not refer to managerial functions of planning, organisingstaffing, directing and controlling. The job of the core people is merely to coordinate with the outside related firms. I start with an easy one.

Business ethics in a nutshell. Departmentation provides help in both these areas. It is easy for managers to supervise the departmental activities as they have to supervise a narrow set of functional skills.