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Departmentalisation - Coggle Diagram
Departmentalisation
meaning
Grouping of activities and people into departments to achieve organizational goals efficiently.
Basis of Departmentalisation
Functional
Grouping based on functions
Example: Marketing, Finance, Production, HR
Product-wise
Grouping based on products or services
Example: Electronics Division, Clothing Division
Territorial
Based on regions
Example: North Zone, South Zone, East Zone
Customer-wise
Based on customer types
→ Example: Retail customers, Institutional customers
number wise
Based on production process or machinery
Example: Casting Department, Assembling Department
importance
Helps in performance evaluation
Better coordination and control
fixes responsibility and accountability
Specialisation and efficiency