This presentation summarizes the different methods of departmentation in business management. It discusses departmentation based on functions, products/services, processes, regions, customers, and matrix. For each method, it outlines the key merits and demerits. Functional departmentation allows for specialization but weaknesses in one department can affect others. Product/service departmentation allows profit/loss analysis by product but increases duplicate functions. Process departmentation utilizes resources effectively but dependencies exist. Regional departmentation improves customer understanding but increases expenses. The presentation concludes with an overview of the different departmentation methods.

1. SUBJECT PRESENTATION OF BUSINESS MANAGEMENT
SARASWATI VIDYA MANDIR MAHILA MAHAVIDYALAYA
Faculty:-
Dr.Madhu Ojha
Presented by :-
Harshita Narang
Roll no – 2315137450004
B.Com 2nd sem

2. DEPARTMENTATION
Departmentation refers
to division of large
organisation into small
parts there is
administrative
convenience in handling
the work connected
with accomplishment of
the objective of the
organisation.

3. On the basis on functions
Methods of departmentation

4. Merits and demerits of functional
departmentation
MERITS
 It is based on principle of specialisation.
 It is simple and economical.
 It makes effective control possible.
DEMERITS
 The Weakness of one department affects
the other department.
 This system is a hurdle in a way to
complete development of employees.

5. On the basis of products and services

6. Merits and Demerits of Products and
services departmentation
Merits
 It is possible to give equal importance to every product.
 Information about profit and loss from every product is available.
 The system makes possible complete development of managers.
DEMERITS
 It increase expenses because of duplication of functions.
 Resources are misused.
 This system is suitable for big concerns only.

7. On the basis of process

8. Merits and demerits of process
departmentation
MERITS
 Human resources can be effectively utilized.
 Experts employees can be appointed.
DEMERITS
 In this method of departmentation, all the departments depends upon one
another, hence, one the closerof one department, the another department
closes automatically.

9. On the basis of regions

10. Merits and demerits of regional departmentation
MERITS
 Due to direct contact with customers, their problem can be easily
understood and solved.
 Local competition can be easily faced.
 Effective regional control possible.
DEMERITS
 More managerial employees are required which increase expenses.
 Control became difficult because of distance between Head Office and
Regional Office.

11. On the basis of customers

12. Merits and demerits of customer departmentation
MERITS
 All the costumer can easily satisfied.
 All the problems of customer can be quickly solved because the direct
contact with all different types of customers.
DEMERITS
 Expenses are increased because of different sizes of departments.
 Coordination is difficult.

13. On the basis of Matrix

14. Merits and Demerits of matrix departmentation
MERITS
 Their is flexibility in this method of departmentation.
 More possibility of expansion.
DEMERITS
 Their is chance of conflicts between departmental manager and project
managers
 Lack of responsibility in managers.

15. Conclusion
I would like to conclude that this power point
presentation of subject Business Management on the
topic on Departmentation, I have learnt the meaning of
departmentation and the various methods of
departmentation and their merits and demerits. I would
like to extend my thanks of gratitude to my subject
teacher who give me accurate knowledge about this
topic.

16. Thank you