Departments of an organization may be formed on different basis. By keeping this point in view, explain the different types of departmentalization. Also explain the concept of delegation of authority.
TYPES OF DEPARTMENTATION There is no best way to design the departments in the organization. The choice and need of departmentation differ from organization organization. It should be based on the nature, size, mission, goals, etc. of the organization. Departments can be formed on the basis of functions, products, territory, customers, process, time, etc. Major departmentation methods are discussed as below: 1. Departmentation by function: The most common and popular basis for departmentation is the functions to be carried out in the organization. Under this method, separate departments are formed by combining the similar works to be performed within a functional unit. For this, first of all jobs are classified into functional areas such as production, sales, marketing, human resource management, research and development, account, finance, etc. Departments under functional departmentation are shown in figure below : Advantages Division of work facilitates specialization and economie