Class 14 : Departmentalisation

The process of divinding an organiztion into different working units is called departmentalization. Departmentalization can be done on the following basis

• Functional - production, finance
• Products- consumer products, industrial products
• Customers- civilian, military
• Regions or territory- North, South
• Divisional - Time, process

However in practice the following additional types of organizations are also seen

• Combined- a combination of product and territory
• Matrix- a combination of functional and product