Business Studies XII Content
Chapter 4 » Meaning and Methods of Organization | Business Studies – XII
It is defined as a process of dividing small units of organizational activities. Departmentation may be called division sections branch etc. it helps to provide the specialization, develops the skill and knowledge of manpower and the efficiency of manpower of an enterprise will be increased. It specifies the area of the activities that facilitate the managerial task.
1. Departmentation by function: – grouping all similar activities of the business into department is called functional departmentation. It is simplest and common method of departmentation. In other words, when the activities of an enterprise re proved on the basis of function, it is known as departmentation by function.