| Although organizations have much in common with | | | | business. |
| one another, they differ in many ways. Some | | | | If the organization or given department is large, or as |
| organizations are large, and some are small. Some | | | | the organization grows, major departments can be |
| operate in one product area, while others operate in | | | | subdivided. These sub-divisions are called derivative |
| many diversified areas. Some operate in a small | | | | departments. The essential idea is to take advantage |
| geographical area, whereas others do business in | | | | of specialization. As organizations are not static, they |
| many countries of the world. That's where the role of | | | | grow in size either by broadening its product line or by |
| workforce management systems comes into the fore. | | | | expanding geographically. |
| To cope with these varied objectives, strategies and | | | | Further, as the size of the organization increases, |
| situations, managers adopt different workforce | | | | some of the disadvantages become more apparent. |
| management systems. | | | | The organization is forced to look for other systems in |
| Departmentation is the process of dividing the | | | | tune with the requirements. In such situations, |
| organization into manageable subunits. The subunits | | | | managements will opt for various other types of |
| are often referred to as departments, divisions or | | | | departments, in focusing on the product or market. |
| sections. Functional departmentation is the process of | | | | One of the most common ways in which businesses |
| dividing the organization into units on the basis of the | | | | grow is by increasing the number of products they |
| firm's major activities. It involves grouping employees | | | | make and sell. If the organization is successful, several |
| according to the broad tasks they perform. Normally, | | | | product lines may attain such high sales that they |
| separate departments are created in workforce | | | | require a separate division. |
| management systems for all the key activities of the | | | | |