Types of Departmentalization and thier Functions.
Contents
- Meaning of departmentalization
- Types of departmentalization
- Functions of departmentalization
- Revision Questions
Meaning of Departmentalization
The creation of departments and divisions is known as departmentalization. Different patterns of departmentalization are possible and the pattern selected will depend on the Peculiar circumstances of the organization. Nevertheless, any organization may be divided into different departments according to numbers. Shifts, functions and geographical locations.
Departmentalization is also the grouping into departments of work activities that are similar and logically connected.
Types of Departmentalization include:
- Personal Department
- Finance department
- Production department
- Marketing department
- Purchasing department
Functions of each Department
1. Personal Department: This types of departmentalization is concerned with the general administration of the whole organization. The personnel manager is the head of this department. The main functions are:
Functions of personnel department
- Human resources planning
- Recruitment, interviewing and selection
- Industrial training and Development
- Staff discipline
- Appraisal
- Promotion
- Welfare, safety and health of workers
- Maintaining good industrial and labor relations
- Trade union matters
- Demotion and dismissal
2. Finance Department: This is concerned with the financial aspect of the organization. There are various divisions like accounting, costing and auditing within the department. The main functions of the financial departments are:
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Functions of Finance department
- To control expenditure
- To take account of revenue
- To keep proper books of account
- To calculate personnel emoluments, wages and salaries
- Cash control
- To ensure that profit justifies investment
- To ensure that resources are managed adequately
3. Production Department: This department produces goods under the direction of the production manager who is the head of the department. The functions of this department are:
Functions of production department
- Cost control
- To produce goods of right quality
- To produce goods of actual quantity
- To research and develop new products
- To design products
- Production of goods at the right time
4. Marketing Department: This is concerned with the marketing, sales and distribution of goods produced. It’s key functions are:
Functions of marketing department
- To advertise
- To sell goods
- To make market research
- Distribution of goods
- Consumer’s orientation
- Marketing
5. Purchasing Department: The purchasing department makes arrangement for purchase of all items required by the business.
Functions of purchasing department
- purchase of raw materials
- Purchase of assets
- Storage and control of stock
- Warehousing of goods
- Maintaining accurate record of sources of materials.
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Revision Questions for Students
- What is departmentalization?
- List 5 types of Departmentalization in commerce.
- Explain personnel department and thier Functions
- What are the functions of finance department.
- Outline the functions of production department.
- Outline five functions of marketing department.