What is Departmentation by enterprise function?


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1)    Functionwise
a.     Grouping activities in accordance with functions of an enterprise
b.    Has its own advantages / disadvantages
2)    Territory or Geography
a.     Grouping activities in a given area or territory are grouped & assigned to manager
b.    Useful to large scale firms or other enterprises whose activities are physically or geographically dispersed
c.      However plant may be local in its activities
d.    For example: marketing function is split region-wise
e.      Has its own advantages / disadvantages
3)    Customer-wise
a.     Activities are grouped together customer-wise
b.    For example: if we take banking industry, then we have Community-city banking; corporate banking,; institutional banking, agricultural banking; etc.
c.      Has its own advantages / disadvantages

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4)    Product-wise
a.     Grouping activities product-wise
b.    For example: a Company that manufactures various products Switchgear, Rotating Machines, Transformers, have the following divisions: like Switchgear Division, Rotating Machine Division, & Transformer Division
c.      Has its own advantages / disadvantages

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