WHAT IS DEPARTMENTATION?

Departmentation  means  dividing a large organisation into smaller units. In  other words, it is the process of grouping  work activities . Owing to expanding business , the number of tasks and people is growing  with it. It is impossible for a single person to  control all the  employees. The overseeing of employees is provided  by departmentation in four main forms. The division/distinction  is made according to type of duty/function/role in the organization or the production process , what kind of products are manufactured, in which geography goods are sold, by which customer groups products  are purchased. Most people are aware of the positive aspects of departmentation, but they may not be aware of the disadvantages.

Functional departmentation is the most common  form of the division. It’s easy to control  the functions or workers by means of a very simple process of grouping activities. This method maintains power and prestige. However, it reduces coordination between sections and also causes managers to lose sight of  overall  objectives . Distinction by product quality is a commonly seen form of  division in addition to functional division. This type ensures better customer service since employees know what  they produce. It assists in the development of all round managerial talent and makes control effective. Nevertheless, it is expensive as duplication of service functions occurs in various product divisions.

Another parameter to divide a job is regarding its territory. Territorial departmentation helps to cater to the needs of local people more satisfactorily. Plus, it assists in the development of domains . Yet, it may lead to communication problems between the head office and  the regional office due to lack of means of communication at some locations; thus, coordination between various divisions may become difficult. The last kind of division is built on customer basis. It provides  focus on the customers who are the buyers . Employees who are masters/experts  in their area may give better service to customers having different needs and tastes. Even though  their expertise is  valid , specialized sales staff may become desperate with the downward movement of sales to any specified group of customers.

To sum up, in spite of  the drawbacks of dividing, it is necessary to manage  big organizations successfully. Therefore,  all kinds of departmentation will exist as the best way to administer  any large scale establishment.