The process by which the activities of an enterprise are grouped homogenously into different groups. Departmentation is an important process of office management. This is otherwise termed as divisionalisation because it divides the organization into different divisions or groups.
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The process of grouping various activities into separate units is called departmentation. Departmentation can be made on the basis of functions or product handled. When the departmentation is done on the basis of functions, it is called functional departmentation.
The process of grouping of activities into units for the purpose of administration is called departmentation. It can be defined "as the process by which activities or functions of enterprise are grouped homogeneously into different groups."