Departmentalization or departmentation refers to the horizontal division of duties or activities into separate divisions. Departmentation comprises grouping of operational duties into jobs, merging of jobs into effective work group and combining of groups into divisions sometimes dubbed as departments. The goal is to maximize the benefits of division of labor and specialization up to a particular point. There are numerous Departmentation methods, each of which is appropriate for certain business sizes, strategies, and goals. The following are some key approaches for categorizing activities: Function-based organization: This is the most basic and widely used Departmentation basis. Each primary function of the business is divided into departments.
