Methods_of_Departmentation for 1st semester

Departmentation amd its metjods are discussed here

1. Methods of Departmentation Organisational Design Approaches

2. Introduction Departmentation = Dividing organisation into units. Purpose: Specialization, coordination, efficiency.

3. Functional Departmentation Grouped by functions: Marketing, Finance, HR, Production. ✅ Advantages: Specialisation, clear career path. ❌ Disadvantages: Silos, poor inter-department coordination.

4. Product Departmentation Grouped by product line or service. ✅ Advantages: Focus on product, faster market response. ❌ Disadvantages: Duplication of functions, costly.

5. Geographical Departmentation Grouped by territory/region. ✅ Advantages: Local adaptation, customer access. ❌ Disadvantages: Resource duplication, inconsistency.

6. Customer Departmentation Grouped by customer segments. ✅ Advantages: Tailored service, customer focus. ❌ Disadvantages: Duplication, internal competition.

7. Process Departmentation Grouped by production/service process. ✅ Advantages: Smooth workflow, efficiency. ❌ Disadvantages: Neglects end-to-end view.

8. Matrix Departmentation Dual reporting structure (Function × Product). ✅ Advantages: Flexible resources, collaboration. ❌ Disadvantages: Role conflict, authority ambiguity.

9. Divisional & Hybrid Structures Divisional: Semi-autonomous units (by product/market). Hybrid: Combination of multiple methods. Used in large, diversified organisations.

10. Comparison of Methods Functional – Best for small firms, specialization. Product – Best for diversified products. Geographic – Best for regional operations. Customer – Best for distinct customer groups. Process – Best for manufacturing/service flows. Matrix/Hybrid – Best for complex environments.

11. Conclusion No single best method of departmentation. Depends on size, product, geography, customers. Right structure = Right performance.