Importance of Departmentation

Need or importance of Departmentation

The basic need for Departmentation arises because of specialization of work and the limitation on the number of subordinates that can be directly controlled by a superior. Therefore, if there is no Departmentation, there would be serious limitation on the size of the organization. Grouping of activities and consequently of the personnel into departments makes it possible to expand an organization to any extent. However, when the departments are created to overcome this basic limitation, they serve a number of other functions leading towards the organizational efficiency. The major importance of the Departmentation is along to the following lines.

Advantages of the specialization: probably the most important single principal in an analysis of the classical approach to organizational design is specialization to work. This principal affects everyone every day. The basic advantage of the specialization lies in the terms of efficiency with which the work is performed because of a person focused his attention on a narrow aspect of the work and he gets mastery over that aspect naturally this result into performing the work more efficiently. Thus if the managerial function is conceived as a set of activities facilitating the work of the organization, these activities can be carries out more efficiently and effectively through the division of work leading to a specialization of the managerial function.

Fixation of responsibility: Departmentation helps in fixing the responsibility and consequently accountability for the results. Responsibility can be discharged properly when it is clear, precise, and definite. Through Departmentation, the work is divided into small units where it can be defined precisely and responsibility can be fixed accordingly. The manager concerned to whom responsibility is given can be delegated corresponding authority. When the both responsibility and authority are clearly specified, a manger knows what exactly he has to do in the organization. This helps the manager to become more effective.

Development of the managers: Departmentation helps in the development of the managers. Development is possible because of two factors. First, the managers focus their attention on some specific problems which provides them effective on the job training. Second, managerial need for further training can be identified easily because the manager's role is prescribed and training can provide them opportunity to work better in their area of specialization. Thus need for training and its methods can be easily identified.

Facility in the appraisal: managerial performance can be measured when the area of the activities can be specified and standards in respect to these can be fixed. Departmentation provides helps 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, the factors segment affecting the performance can be pointed out more easily. Similarly, standards for the performance can be fixed easily because the factors affecting the work performance can be known clearly. Thus the performance appraisal will be more objective when departments have been created.

Feeling of autonomy: Departmentation provides motivation by developing feeling of autonomy to the extent possible. Normally departments are created in the organization with creation degree of autonomy and freedom. The manager in charge of a department can take independent decisions within the overall framework of the organization. Thus he enjoys satisfaction of being important to the organization. This feeling itself is a source of better performance among managers. 

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