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INTRODUCTION
Departmentalization is the process of breaking down an enterprise into various
departments
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A
department is an organization unit that is headed by a manager who is responsible
for its activities
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However technically both are different, both emphasize on the use of the
specialized knowledge, but departmentation has higher management level strategic
considerations while the division of labour has a lower level of operating
considerations
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The Five common forms of departmentalization are :
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Functional departmentalization

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Product departmentalization

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Location departmentalization

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Process departmentalization

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Customer departmentalization

Fixation of responsibility
Departmentalization divides works into different units on the basis of nature and responsibility is
entrusted to departmental managers
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Helpful for expansion
Departmentalization facilitates top manager to direct and supervise the work performed by
subordinate managers
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Such division of work, thus, is helpful for
expansion of business
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Consequently, a high skilled subordinate level manager can get
opportunity to promote to the higher level

a
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In other words it groups jobs according to function
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For example, Manufacturing, Production,
Purchasing etc
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This sort of departmentalization includes the people that
are within the organization to have the same knowledge or skills, just as the
Accounting Department having persons of commerce and Marketing Department
having MBA persons
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In a
functional structure, an organization is divided into smaller groups by areas of
specialty such as IT, finance, operations, and marketing
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It also permits greater
operational efficiency because employees with shared skills and knowledge are
grouped together by functions performed
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This
arrangement allows for in-depth specialization and co-ordination within functional
area
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A limited view of organizational goals is a major disadvantage and will be hard to
maintain within the department
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Product departmentalization
typically groups tasks related to a particular product or product line under one senior
manager who specializes in that part of the company's business
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For example, Samsung manufactures Phones, T
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and Tablet etc
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Thus,
it is duplication of functions
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Each product line has a department of its own, and each
department has specialists in all of the functions needed to produce and sell that
product, such as marketing, manufacturing, accounting and human resources
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For example, the
sales people can talk to the design and manufacturing specialists in their own
department to address customer satisfaction issues rather than having to go outside
the department
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For instance, if your company provides both
copywriting and printing, it might make sense to operate these services as separate
and autonomous departments

Product departmentation has the advantage of flexibility but the potential
disadvantage that the departments may compete by chance
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ii) Location Departmentalization

Location Departmentalization is the grouping of jobs on the basis of defined
geographic sites or areas
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v
services within S
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S
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A Location organizational structure groups
representatives from each functional department into units formed to serve a specific
market or region
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From
manufacturing and selling of the products there are many different geographical
regions and local shops around from purchasing or even needing assistance with the
products there a wide range of locations that persons can either choose from
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This structure is also suitable for a multi-national business

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