Bases Methods Types of Departmentalization

Bases Methods Types of Departmentalization

Bases or methods or types of departmentalization are depicted in this image.

Diagram Credits © Moon Rodriguez.

The bases or methods or types of departmentalization are listed as follows:

1. Functional departmentalization.
2. Process departmentalization.
3. Product departmentalization.
4. Geographic departmentalization.
5. Customer departmentalization.
6. Combined departmentalization.
7. Time departmentalization.
8. Number departmentalization.

Now let's proceed further to explain each base or type of departmentalization.

1. Functional departmentalization

In functional departmentalization, departments are segregated i.e. separated from each other based on functions or tasks they perform.

Examples of functional departmentalization include; production department, finance department, marketing department, human resource (HR) department, etc. Here, all activities, which are directly or indirectly connected with production are grouped together to make a production department.

Departmentalization based on function is depicted in the image given below.

Diagram Credits © Moon Rodriguez.

2. Process departmentalization

In process departmentalization, departments are separated based on their role in a production process.

Best example of process departmentalization can be seen in a textile mill where we may have a spinning department, weaving department, dyeing department, printing department, etc. Here, inside a textile mill, all activities, which are directly or indirectly related with spinning are grouped together to make a spinning department.

Departmentalization based on a production process is depicted below.

Diagram Credits © Moon Rodriguez.

3. Product departmentalization

In process departmentalization, departments are separated based on a type of product produced by the company. Here, every individual department is responsible for producing and selling the type of product assigned to them.

A good example of product departmentalization is witnessed in an automobile manufacturing company. In such a company, we generally see departments like a two-wheeler department, three-wheeler department, four-wheeler department, heavy motors department, etc., which manufacture vehicles such as motorcycles (bikes), auto-rickshaws, cars, buses and trucks, respectively. Here, inside an automobile company, all activities, which are directly or indirectly related to car manufacturing are grouped together and assigned to four-wheeler or car department.

Departmentalization made on the type of product produced is depicted below.

Diagram Credits © Moon Rodriguez.

4. Geographic departmentalization

In geographic departmentalization, separate departments are made based on the company's (i.e. institution's) operations to be carried out either over a vast area or within some restricted area through branches or offices established at different zones or places in that area.

First, an entire area of operation (e.g. world, country, state, city, etc.) is decided followed by division of that area into different zones. Secondly, a branch or an office is established in each geographical zone to manage local affairs of the company in that zone.

For example, a large company may operate globally through its different zonal departments established on a country basis. In a similar context, a small business or firm may operate only within city boundaries through its offices established in east zone, west zone, north zone and south zone of the city.

Departmentalization based on the division of an area of operation into different zones is shown in the following image.

Diagram Credits © Moon Rodriguez.

5. Customer departmentalization

In customer departmentalization, departments are separated from each other based on the types or groups of customers to be handled or dealt with.

For example, customers can be classified under types such as, international or foreign customers, inland or domestic customers, bulk purchasing or wholesale customers, retail customers, etc.

Each group of customers needs different tactics and strategies to handle them better. Hence, an appropriate customer departmentalization serves this purpose.

Departmentalization based on the types or groups of customers to be handled in shown in the following image.

Diagram Credits © Moon Rodriguez.

6. Combined departmentalization

In combined departmentalization, a company or an organization uses a mixture or combination or union of two or more different bases of departmentalization.

For example, in practice, owing to rising market competition and emerging complexity of tasks most organizations often uses a combination of above-discussed (see point no. 1 to 5) types (i.e. methods or bases) of departmentalization.

Departmentalization by using a combination of two or more different bases is shown in the following diagram.

Diagram Credits © Moon Rodriguez.

7. Time departmentalization

In time departmentalization, departments are separated based on the division of their working time or job shifts.

For an example, departments can be made based on night shift, morning or regular shift, evening shift, etc.

This method of departmentalization is generally seen among those organizations who render 24-hours emergency and/or essential public services for 365 days a year. Examples of such organizations include; hospitals, hotels, airports, police, security, and so on.

Departmentalization done on a basis of division of work time is depicted in the following image.

Diagram Credits © Moon Rodriguez.

8. Number departmentalization

In number departmentalization, separate departments are made after analysing and judging the maximum limit up to which number of persons can be managed or educated or supervised or taken care of. This method of departmentalization is generally used in schools and colleges for making division of classes.

For example, students having numbers from 1 to 50 are made to sit in A division of their class and so on. Military forces also use this method.

Departmentalization by numbers is depicted in the image given below.

Diagram Credits © Moon Rodriguez.