Departmentalization.
This is the process of breaking a company's tasks into different departments based on where they are, what they do, what product they sell, and who their customers are.
Locations, products, functions, and customers are common bases for a firm’s
Location, product, function, and customer are common bases for a firm's departmentalization. Departmentalization is the process of grouping activities into departments for the purpose of administration at all levels. The basic need for this is to make the size of each departmental unit manageable and secure the advantages of specialisation.
There are four basic types of departmentalization such as function, product, customer, and geography
Function: The enterprise may be divided into departments on the basis of functions such as operations, research and development, and marketing
Product: Companies with diversified product lines are frequently structure based on the product or service. Product departmentation is useful when the expansion, diversification, manufacturing and marketing characteristics of each product are primarily significant.
Customer: Companies that offer services such as health care, tend to use a customer-based structure
Geography: Geographic structuring involves the grouping activities based on geography, for example as a Latin American division. Territorial or geographical departmentation is useful specially to large-scale enterprises whose activities are dispersed widely
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