of the companies. When low cost and efficiency are the keys to successful goal achievement, fulfillment companies should use functional departmentation. It involAlthough companies have much in common with one another, they also differ in many ways. Some companies are large, some are small and some operate in only one product area, others operate in many diversified areas. Some operate in a small geographic area whereas others do business in many countries of the world. To cope with these varied objectives, strategies and situations, companies adopt different structures.

Departmentation is the process of dividing the company into manageable subunits. The subunits are often referred to as departments, divisions or sections. So many flexible structures are adopted these days to meet the specific needs of the companies. When low cost and efficiency are the keys to successful goal achievement, fulfillment companies should use functional departmentation. It involv

ct area, others operate in many diversified areas. Some operate in a small geographic area whereas others do business in many countries of the world. To cope with these varied objectives, strategies and situations, companies adopt different structures.

Departmentation is the process of dividing the company into manageable subunits. The subunits are often referred to as departments, divisions or sections. So many flexible structures are adopted these days to meet the specific needs of the companies. When low cost and efficiency are the keys to successful goal achievement, fulfillment companies should use functional departmentation. It invol

hese varied objectives, strategies and situations, companies adopt different structures.

Departmentation is the process of dividing the company into manageable subunits. The subunits are often referred to as departments, divisions or sections. So many flexible structures are adopted these days to meet the specific needs of the companies. When low cost and efficiency are the keys to successful goal achievement, fulfillment companies should use functional departmentation. It invol

e subunits. The subunits are often referred to as departments, divisions or sections. So many flexible structures are adopted these days to meet the specific needs of the companies. When low cost and efficiency are the keys to successful goal achievement, fulfillment companies should use functional departmentation. It invol of the companies. When low cost and efficiency are the keys to successful goal achievement, fulfillment companies should use functional departmentation. It involves grouping employees according to broad tasks they perform. Normally, separate departments are created for all the key activities of the business.

For example, in a manufacturing company, the activities essential to the existence of the company are production, marketing and finance. However, in non- manufacturing concerns these functions differ. In a transport company, the key areas may be operations, sales and finance. If the company is large, or in other words, as the company grows major departments can be subdivided. The essential idea is to take advantage of specialization.

If the company is big and operates in a stable environmen