What is meant by departmentation. How many types are of it ?

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Meaning and Definition of Departmentalization-

Meaning and Definition of The process of dividing the activities of a business enterprise into different categories is called departmentalisation. Under departmentalization, any main work is divided into smaller sub-tasks. Under departmentalisation, considering the nature of the enterprise, it is divided into different departments. The main objective of departmentalization is to get the benefits of specialization and increase the efficiency of the organization.

According to Koontz and O’Donnell, “Departmentalization is a process of dividing a large unitary office organization into smaller and more flexible units. Of. Of. According to Gupta (K. K. Gupta), “Departmentalization is the process of dividing a large functional enterprise into smaller independent, flexible and convenient units.”

William F. According to Glueck (William F. Glueck), “Departmentalization is the division of the functions of the whole enterprise and the establishment of groups of their functions. Its purpose is to create sub-units which are called departments.”

 

Importance and Need of Departmentalization

The need for departmentalization is linked to the changed size of the organization. Its importance is manifested by the fact that it determines the contours of the planar dimension of the organization structure. Activities can be said to be a means in the attainment of organizational goals. The importance of departmentalization in this form is because under it the activities are properly defined, analysed, grouped and integrated.

Departmentalization significantly affects organizational performance and effectiveness. It helps in determining the number, mix skills and capabilities of the personnel and thus has an important role in human resource planning and control. The extent to which authority authority is to be delegated to the managers at different levels depends to a great extent on the extent, extent and importance of the activities for which they are responsible. Therefore, departmentalization helps to this extent in determining the assignment, authority and decision-making centers in the organisation. Departmentalization also affects the efficiency and effectiveness of the processes of planning, decision making, communication, control and coordination. It also appears to be very important from the point of view of employees and managers, as their growth and development, achievement and satisfaction depend to a significant extent on the nature of placement between activities and the scope for interaction. The role or importance of departmentalization can be explained as follows:

1. Specialization – When the activities are grouped according to the type of work, then all the activities are related to only one type. Therefore, experts and professionally skilled persons can be appointed to supervise those activities. This brings skill and expertise.

2. Easy Supervision – Tasks to be performed by the supervisor Familiarity with the types of tasks because all the activities are related to only one task. As a result he can supervise and guide the employees performing those activities.

3. Easy Coordination– In this, the departments are mutually dependent on each other, which means that the activities of one department depend on the performance of other departments depends. For

example, the production department depends on the purchasing department for raw materials.

Sales department depends on production department for final production etc. This para shelter brings coordination between the various departments.

4. Helps in Increasing Managerial Efficiency – The managers of a department perform the same type of work again and again which makes them expert and increases their efficiency.

 

5. Effective Training– It makes training of employees more easy as they are trained in limited type of skill i.e. production department. Employees are trained only in production techniques.

 

6. Adoption to Change – Whenever there are any changes in the business environment, then with the help of organization work, these changes can be adopted systematically because organization work creates various departments and related activities under each department. grouping of. With this, changes can be adopted only in the areas that are affected by these changes and these changes can be easily implemented through these departments. Can be communicated to the entire organization.

7. Expansion and Growth – With proper work division and departmentalisation, companies can easily meet challenges and expand their operations in a planned manner.

8. Optimum Utilization of Resources – Organization work has very less opportunities for repetition of tasks as tasks are assigned to different persons by clearly describing the work in the job differentiation document. Therefore, there is no chance that the same work is performed by two or more persons.

Basis or Types of Departmentalization-

Departmentalization in an undertaking or institution is done on the following grounds

1. This is the most popular and popular method of departmentalization on the basis of functions. In this method, on the basis of functions the institution is assigned various departments; For example, purchase, production, finance, sales etc. are divided into parts.

Departmentalization on the basis of merits and functions

(1) encourages specialization.

(2) There is coordination among all the departments of the organization. The following benefits accrue from

(3) It makes the best use of human resources possible.

(4) In this it is possible for the top management to maintain control over the company. The following defects have been pointed out due to departmentalization on the basis of demerits –

(1) There is a delay in decision making.

(2) Internal enmity and conflict arise between different departments.

(3) There is no effective system of control in this.

2. Divisionalization of activities on the basis of production or by product line

It is considered important for large scale and large scale production enterprises. That is why in the 1920s this method of departmentalization was first introduced by U.K. s. a. The two well-known companies of Du Pot and General Motors were adopted. Most of the companies adopting this method were initially doing departmentalization according to the work, but as a result of the growth of the firm, when various departmental managers experienced difficulty and the management work became complicated, then the firm was departmentalized on the basis of production. In this type of departmentalization, the number of types of goods or services are prepared in an organization. It should be divided into equal number of different parts. For example, in an automobile factory, separate departments may be set up for trucks, cars, jeeps, scooters, etc.

Properties- (1) It makes maximum use of technical skill. Stereo Systems Department Production

(2) Managerial development can be done easily in this.

(3) In this, the responsibility for making profit is easily ascertained on the managers. could.

(4) In this, the managers get a good opportunity to show their ability.

Defect- (1) In this, the problem of control over the top managers remains.

(2) In this, the materials and efforts are not fully utilized.

(3) Management costs are high in this system.

3. On the regional basis, where the business of the organization is spread far and wide, then the business activities can be divided on the regional basis. For example, the General Insurance Corporation, in view of its large business, has divided the business into many regional and divisional offices. Similarly, Life Insurance Corporation has also divided its entire country’s business into many regional units. Due to departmentalization on this basis, there is convenience in the management work and sometimes the cost comes in the expenditure.

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