rochak update

This is one of the commonly used basis for departmentalization according to this basis departments are establish on the basis of the nature of the functions to be performed in the organization like finance production marketing human resources a major function can farther be divided into sub function if required a team along with specialized department head is assigned responsibility of a department it focuses on specialization.
 This basis of departmentalization is used by the large organizations which are involved in various product line departments are created on the basis of product line for example if an organization produces cold drinks noodles bis cutes separate departments are created on the basis of these three products further different sub department are created with in each departments on the basis of nature of the jobs each department looks after the production marketing finance ect. related job each department is independent and responsible for its over all performance.