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INTRODUCTION
Departmentalization or departmentation is a part of the organization process. It involves the
grouping of common activities on the basis of a function of the organization under a single persons
control. A department is a unique group of resources established by management.
1. Meaning:
Departmentalization means the process by which similar activities of the business are
grouped into units for the purpose of facilitation smooth administration at all levels. In short, it
means grouping activities and people into departments.
2. Definition:
Departmentalization the grouping of related functions into manageable units to achieve the
objectives of the enterprise in the most efficient and effective manner. Departmentalization refers to
the classification of activities on operations of an undertaking into functionalized categories.
II.
It helps managers to easily spot the source of information, skills and competencies to make
decision.
4. It contributes to the success of organization and makes the departmental heads efficient.
III.
TYPES OF DEPARTMENTALIZATION
The departmentalization is divided into eight categories such as:
1. Numbers Departmentalization:
This method is used to group activities on the basis of a certain number of persons. This
method is best suited to army. Under this method similar type of duties is performed by small
groups and each group is controlled by a supervisor or an executive.
E.g. Squads, battalions, companies, brigades and regiments In Army.
Army
Squads
Battalions
Companies
Brigades
Regiments
2. Time Departmentalization:
Under this method of departmentalization activities are grouped together on the basis of the
time of the performance. This method is most suited to hospitals and other health care facilities
where the round the clock patient care is essential.
E.g. hospitals and other care facilities
A. Merit of time departmentalization
1. Services can be reentered round the clock.
2. It is possible to use processes that required uninterrupted continuing cycle.
3. Expensive equipment can be used continuous
B. De- Merit of time departmentalization
1. Supervision may be lacking during the night shift.
2. Employees engaged in day and night shifts may suffer from fatigue.
3. Shift causes problem of co-ordination and communication.
4. Paying overtime may result increase in product or service cost
3. Functional Departmentalization:
It is the most logical, widely used and basic form of departmentalization. Under this method
activities are grouped on the basis of the functions of enterprises. The basic functions are
production, selling and financing. This method is universally popular.
A. Advantages of Functional Departmentalization
1. It is scientific and time tested method.
2. It follows the principles of specialization and division of labour.
3. It ensures performance control and it preserves the importance of each of activities.
4. Due weightage and prestige are given to managers and respected.
B. Disadvantages of Functional Departmentalization
1. It makes management control work more difficult.
2. Increases work load and responsibility of managers.
3. Does not offer scope for training for overall development of managers.
2
4. Territorial Departmentalization:
Department organized on the basis of geographical area is known as territorial
departmentalization. This kind of departmentalization is best suited to large- scale enterprises whose
business activities are geographically dispersed.
E.g. Indian railways are the best example for territorial departmentalization. It is departmentalized
into Northern, Southern, Eastern, central, south central etc.
Territorial Departmentalization
Southern
Northern
Eastern
Central
South central
Regular Courses
Evening courses
Open University
Distance Education
to
the
different
departments
in
this
type
of
the
departmentalization.
Grinding
Welding
Assembling
Shaping
Finishing
Dept. of Tables
Dept. of Chairs
Dept. of Beds
CONCLUSION
A departmentalization is a unique group of resources established by management.
Departmentalization helps the business organization to specialize activities and expand the business
to the extent necessary.
BIBLIOGRAPHY
Drucker, Peter. The Practice of Management, New York: Harper, 1954.
5
Gulick, Luther and Urwick, Lyndall, (eds). Papers on the Science of Administration. New York:
Institute of Public Administration, 1973.
Koontz, Harold & Cyril ODonnell. Principles of Management. New York: McGraw-Hill, 1964.