* . Explain the Different Bases of Departmentation with advantage and disadvantage.
Departmentation:
Departmentalization is the process by which the activities of an enterprise are grouped homogenously into different groups.
Departmentalization refers to the grouping of operating tasks into jobs, the combining of jobs into effective work groups and the combining of groups into divisions often termed as ‘Departments’.
Grouping of activities into departments is necessary part of the process of setting up organisation, whenever enterprise expands beyond the size that cannot be effectively managed by one person. Departments and levels emerge from the grouping of activities.
According to Koontz and O’Donnell, “A department is a distinct area, division or branch of an enterprise over which a manager has authority for the performance of specified activities.”‘
In the words of Louis Allen, “Divisionalisation is a means of dividing the large and monolithic functional organisation into smaller flexible administrative units.”
In simple words, departmentation is the process of classifying and grouping all the activities of an enterprise into different units and sub-units. The aim is to facilitate the carrying out of the activities efficiently for achieving overall results.
Various bases of Departmentation are disscussed below :-

1. Functions. Important enterprise functions provide the usual basis for classifying activities into departments. Manufacturing, marketing, finance, personnel, accounting and engineering are the typical functions of an industrial enterprise, and departments ma be established on the basis of such functions. But all these functions are not alike in importance from the business point of view. Marketing and manufacturing are the basic functions of an industrial concern, and others are regarded as service functions because they exist for