Departmentation Case Study:

Departmentation is the process of the uniting of the activities of the company into the certain groups and departments with the purpose to manage and control them effectively. The process of departmentation is very important and is widely used in business, as every big corporation has to be centralized in order to control its activity well. Departments are created on the basis of different factors.

First of all, if there are offices which fulfill the common duties, they can be and ought to be united and controlled from the single centre in order to increase their productiveness. This process is applied not only in private business but by the government of the country, which organizes the departments of economics, culture, sport, etc uniting all the organizations and companies under the single flag of the common department. Then, departmentation is carried out on the basis of the geographical position of the activities.

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For example, if the corporation is big and covers the whole country, it can form the departments on the basis of their location: the eastern department, the central department, etc. Next, the corporation can form a department on the basis of the type of product manufactured on its factories and plants. If the corporation manufactures numerous products, devices and appliances, provides service of all kinds, it can form numerous departments on the basis of the products and these services (for example, the department of banking, insurance, telecommunication, etc). Finally, a corporation creates a department on the basis of the type of customers who purchase its products or services (for example, the department of the premium-class products, middle-class products, etc.).

Departmentation is the important essential process which touches upon every serious and big business. The student who is asked to prepare departmentation case study should first of all learn about the process in the whole and then focus on the direct case. The case should be researched from all sides; the factors and consequences of departmentation ought to be found as well in order to observe the problem objectively. One should analyze the case professionally and try to solve the problem of departmentation in the appropriate way paying attention to the peculiarities of the company and the type of the services and products it offers.

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