Departmentalisation : Meaning, Need and Selecting a basis

Principles of management, management, brainy director

 

Meaning of Departmentalisation:

‘Departmentation’ or ‘Departmentalisation’ is the process of grouping the activi­ties of an enterprise into several units for the purpose of administration at all levels. The administrative units so created may be designated as departments, divisions, units, branches, sections, etc

Needs for Departmentation:

• Division of Work

• Identity

• Freedom to work

• Responsibility is fixed

• Better assessment of performance

• scope for expansion

Other Needs and Importance of Departmentation:

1. Advantages of Specialisation:

Departmentation enables an enterprise to avail of the benefits of specialisation. When every department looks after one major function, the enterprise is developed and efficiency of operations is increased.

2. Feeling of Autonomy:

Normally departments are created in the enterprise with cer­tain degree of autonomy and freedom. The manager in charge of a department can take inde­pendent decisions within the overall framework of the organisation. The feeling of autonomy provides job satisfaction and motivation which lead to higher efficiency of operations.

3. Expansion:

One manager can supervise and direct only a few subordinates. Group­ing of activities and personnel into departmentation makes it possible for the enterprise to expand and grow.

4. Upliftment of Managerial Skill:

Departmentation helps in the development of managerial skill. Development is possible due to two factors. Firstly, the managers focus their attention on some specific problems which provide them effective on-the-job training. Sec­ondly, managerial need for further training can be identified easily because the managers’ role is prescribed and training can provide them opportunity to work better in their area of spe­cialisation.

5. Facility in Appraisal:

Appraisal of managerial performance becomes easier when specific tasks are assigned to departmental personnel. Managerial performance can be meas­ured when the areas of activities are specified and the standards of performance are fixed. Departmentation provides help in both these areas. When a broader function is divided into small segments and a particular segment is assigned to each manager, the area to be appraised is clearly known; and the factors affecting the performance can be pointed out more easily. Similarly, the standards for performance can be fixed easily because the factors influencing the work performance can be known clearly. Thus, performance appraisal becomes more effective.

Selecting for the basis for Departmentalisation (Headings only):

1.  Specialisation
2. Effective Control
3. Co-ordination
4. Cost Effective
5. Avoidance of Duplication of work
6. Reduction in Work Burden