Question

Enumerate the various methods of creating departments in a commercial organisation.

Answer 1

1. Departmentation by products, e.g. textiles department, major department, chemicals department, etc.
2. Departmentation by process e.g. spinning, weaving, dyeing and bleaching departments.
3. Departmentation by functions, e.g. purchase department, production department, marketing and sales department, finance and accounts department, human resources department, etc.
4. Departmentation by customers, e.g. gents wear, ladies wear, children wear departments.
5. Departmentation by territory e.g. Northern Railway, Southern Railway, Eastern Railway, etc.