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Departmentation

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Question # 4: List categories of departmentation and explain departmentation by functions
Answer:
Departmentation
Introduction
Organizations are formed when a group of individuals unite to accomplish a specific goal. They are responsible for creating a work environment that best utilizes resources such as people, tasks and technology. But, in order to meet this objective, they will need to create an organizational structure or design. Organizational structure and design include work specialization, departmentalization, chain of command, span of control, centralization and decentralization and common organizational designs. Departmentalization is discussed here.
Meaning of departmentation
Grouping of activities is an essential step in designing an organisational structure. Grouping of activities into departments or other homogeneous unit is known as departmentation. Departmentation or departmentalisation is the process of grouping tasks into jobs, the combining of jobs into effective work groups and the combining of groups into identifiable groups or departments.
Need and importance
The basic purpose of departmentation is to make the size of each departmental unit manageable and to secure advantages of specialization. It is necessary on the account of following reasons * Specialization: Departmentation enables an organization to avail the benefits of specialisation. * Expansion: One manager can supervise and direct only a few subordinates. * Autonomy: Departmentation results in the division of enterprise into semi-autonomous units. * Fixation of responsibilities: Departmentation enables each person to know the specific part he is to play in the total organization. * Appraisal: Appraisal of managerial performance becomes easier when specific tasks are assigned to specific personnel. * Managerial development: Departmentation

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