Departmentalization is the subdivision of work activities into units within the organization. This subdivision allows individual workers to specialize in certain jobs and to become efficient in them. A marketing department may be headed by a marketing vice-president and may include sales, advertising, and market research. A personnel department may include recruitment, training, employee benefits, and industrial relations.

Five major forms of departmentalization exist: product, geography, customer, function and process. A number of different bases for departmentalization may be used within the same company. The decisions on which bases to use are made by balancing the advantages and disadvantages of each. The experience and judgment of top management come into play in such decisions.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit, and my Lectures.

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