Departmentation
What is the meaning of departmentation?
‘Departmentation’ or ‘departmentalization’ is the process of classifying the activities of the
enterprise into several units for the purpose of administration at all levels.
Departmentation and Departmentalization are two different terms with same meaning.
The administrative units created can be designated as departments, divisions, units,
branches, sections, etc.
The process of organizing involves dividing and grouping the tasks to be performed in an
enterprise and delegating various duties and responsibilities to different people.
Dividing work naturally means identifying individual activities that are to be done for the
achievement of organizational objectives. But once the various activities are identified, it is
necessary to group them together on some logical basis so that a team can be organized.
Need and Importance of Departmentation
The basic requirement of departmentalization is to make the size of each departmental unit
manageable and secure the benefits of expertise. The set of activities and, as a result,
personnel departments, makes it possible to expand an enterprise to any extent.
The department is required due to the following reasons:
, 1. Advantages of expertise: The department enables an enterprise to reap the benefits of
expertise. When each department looks at a key function, the enterprise develops and
the efficiency of operations increases.
2. Sense of autonomy: Generally, departments are created in the enterprise with some
degree of autonomy and independence. Managers in charge of a department can make
independent decisions within the overall structure of the organization. A sense of
autonomy provides job satisfaction and motivation that leads to higher efficiency of
operations.
3. Expansion: A manager can only supervise and direct a few subordinates. The group of
activities and personnel in the department make it possible for the expansion and
development of the enterprise.
4. Fixation of Responsibility: The department enables each person to know the specific
role he has to play in the total organization. Responsibility for results can be defined
more clearly, precisely and accurately and a person can be held responsible for the
performance of his responsibility.
5. Enhancing managerial skills: Helps in development of departmental managerial skills.
Development is possible due to two factors. First, managers focus their attention on
some specific problems that are effective in providing them with on-the-job training.
Secondly, the managerial need for further training can be readily identified as the role of
managers is fixed and training can provide them with an opportunity to work better in
their area of expertise.
6. Facility in Appraisal: Evaluation of managerial performance becomes easier when
specific tasks are assigned to departmental personnel. Managerial performance can be
measured when areas of activities are specified and standards of performance are set.
The department provides assistance in both these areas.
7. Administrative Council: A department is a means of dividing a large and complex
organization into smaller administrative units. The grouping of activities and personnel in
manageable units facilitates administrative control. Standards of performance for each
department can be accurately determined.
Types of Departments
1. Functional Departmentation: tasks involving the same or similar activities.
What is the meaning of departmentation?
‘Departmentation’ or ‘departmentalization’ is the process of classifying the activities of the
enterprise into several units for the purpose of administration at all levels.
Departmentation and Departmentalization are two different terms with same meaning.
The administrative units created can be designated as departments, divisions, units,
branches, sections, etc.
The process of organizing involves dividing and grouping the tasks to be performed in an
enterprise and delegating various duties and responsibilities to different people.
Dividing work naturally means identifying individual activities that are to be done for the
achievement of organizational objectives. But once the various activities are identified, it is
necessary to group them together on some logical basis so that a team can be organized.
Need and Importance of Departmentation
The basic requirement of departmentalization is to make the size of each departmental unit
manageable and secure the benefits of expertise. The set of activities and, as a result,
personnel departments, makes it possible to expand an enterprise to any extent.
The department is required due to the following reasons:
, 1. Advantages of expertise: The department enables an enterprise to reap the benefits of
expertise. When each department looks at a key function, the enterprise develops and
the efficiency of operations increases.
2. Sense of autonomy: Generally, departments are created in the enterprise with some
degree of autonomy and independence. Managers in charge of a department can make
independent decisions within the overall structure of the organization. A sense of
autonomy provides job satisfaction and motivation that leads to higher efficiency of
operations.
3. Expansion: A manager can only supervise and direct a few subordinates. The group of
activities and personnel in the department make it possible for the expansion and
development of the enterprise.
4. Fixation of Responsibility: The department enables each person to know the specific
role he has to play in the total organization. Responsibility for results can be defined
more clearly, precisely and accurately and a person can be held responsible for the
performance of his responsibility.
5. Enhancing managerial skills: Helps in development of departmental managerial skills.
Development is possible due to two factors. First, managers focus their attention on
some specific problems that are effective in providing them with on-the-job training.
Secondly, the managerial need for further training can be readily identified as the role of
managers is fixed and training can provide them with an opportunity to work better in
their area of expertise.
6. Facility in Appraisal: Evaluation of managerial performance becomes easier when
specific tasks are assigned to departmental personnel. Managerial performance can be
measured when areas of activities are specified and standards of performance are set.
The department provides assistance in both these areas.
7. Administrative Council: A department is a means of dividing a large and complex
organization into smaller administrative units. The grouping of activities and personnel in
manageable units facilitates administrative control. Standards of performance for each
department can be accurately determined.
Types of Departments
1. Functional Departmentation: tasks involving the same or similar activities.
