What are the Bases and Principles of Management Departmentation?

Meaning of Departmentation

Departmentation refers to the grouping of operating duties into jobs, the combining of jobs and mixing of companies into divisions called ‘Departments’. It refers to the horizontal differentiation in an organization. It is a technique of arranging activities and personnel to facilitate the accomplishment of usual objectives.

Departmentation, in short, may be stated to be part of the employer's manner. This manner entails dividing and grouping sports of an agency into possible divisions or departments for enhancing the overall performance within side the employer. Basically, departmentation is the inspiration of enterprise shape, that is, enterprise shape relies upon departmentation. As the enterprise grows in size, the divisions are split into subunits. Departments are created and are grouped in a single unit. Each branch is headed through someone called the departmental manager.

Basis of Departmentation

What all organizations actually do is group employees in a way that relates to the task they perform or assigned. Let us see the bases of departmentation in detail below.


The basis of the department has to replicate specialization into acting upon the task. Since specialization ends in performance, that basis has to be selected which leads to specialization.


Coordination implies that each one of the associated tasks is carried out in a manner that their overall performance is synchronized in order that every contribution undoubtedly obtain objectives. Degree of coordination will increase whilst carefully associated tasks are grouped together. Therefore, the foundation of the department has to be selected which places carefully associated activities together.


Control involves analyzing whether or not the supposed effects are being performed with the aid of using numerous departments or now no longer and taking corrective movements to enhance performance. Control movements and their effectiveness rely on the manner wherein tasks are grouped into departments. The foundation of the department needs to be selected which guarantees grouping contributions together.


A stability needs to be maintained among the value of making a branch and its contribution. The life of a branch is ideal best whilst it contributes extra than its value. Therefore, this thing needs to be taken into consideration at the same time as selecting a foundation of the branch.

Focus on Results

While deciding on the idea of the department, the relative significance of diverse activities in the direction of attaining the favored outcomes ought to be saved in mind. Thus, the idea of a department which attaches better significance to activities contributing greater in the direction of attaining the favored outcomes ought to be chosen.

Human Consideration

Basis of the department has to additionally think about the human issue within the organization. Therefore, at the side of technical factors, departments have to be created on the premise of availability of personnel, their aspirations and price systems, want for casual groups, and attitudes of human beings closer to numerous bases of department.

Principles of Departmentation

The important principles of departmentation are as follows −

Principle 1 - Specialization

The activities of a business enterprise ought to be grouped so that it will result in specialization. This results in a financial system of exertions and cost. It promotes efficiency.

Principle 2 - Coordination

The method of grouping calls for convergence in some unspecified time in the future called ‘coordination’. The divergent tasks executed at distinctive useful departments must be such that they may be coordinated with ease. Coordination is anticipated to perform the general dreams of the organization.

Principle 3- Control

The pattern of the department ought to reap powerful manipulation of the special practical departments. The practical heads, even though they revel in autonomy, are responsible for overall performance in their very own domain. The overall performance of every practical branch ought to be able to be evaluated and suitable measures ought to be taken to modify its functioning.

Principle 4 -Interdepartmental Cooperation

The activities undertaken are wonderful from one branch to another. But the very interest cannot be done without the aid of the opposite departments concerned. Hence departments need to have cordial family members with one another. The interdependence of many of the departments emphasizes nearer cooperation in the location of mutual confrontation.

Principle 5- Cost Benefit

The creation of departments need to be preceded through price advantage analysis. The advantages predicted to be derived from the departments need to be exceptionally sufficient to justify their advent. Otherwise organizational profitability will be the first causality.

Principle 6- Duplication of Work

Departmentation should assist to dispose of duplication of labor and overlapping of activities. In different words, a worker ought to now no longer be made to file to 2 bosses beneath any given circumstance

Principle 7- Special Attention

Departments which create greater price addition ought to accept greater weight. They are referred to as Key Result Areas (KRA) or Strategic Business Unit (SBU). These gadgets have an effect on the survival and boom of an enterprise

Principle 8 - Human Consideration

Departmenting needs to be no longer handiest component in technical components however additionally human components of the organization. The life of casual groups, cultural patterns, cost system, attitudes of human sources, etc., need to take delivery of due interest. In short, interest in human detail will make a full-size distinction in the overall performance of the department.

Principle 9- Flexibility

The department workout needs to no longer be an inflexible one. The departments need to be such that it may be closed in case of its redundancy or a brand new one may be installed in reaction to the rising desires from environmental dynamics.

Principle 10 - Utilization of Resources

Departments have to be created to harness the entire usage of sources with the organization. There has to no longer be duplication of efforts or wastage of sources within side the call of advent of needless departments. Departments have to be created within side the mild of want and the provision of sources.

Advantages of Departmentation

The key advantages of departmentation are as follows:

  • It contributes to systematic distribution of labor amongst individuals.

  • It contributes to the attainment of specialization

  • It simplifies managerial tasks.

  • By defining the responsibilities and obligations of the executives clearly, departmentation fixes duty for the results. This makes the government alert and efficient.

  • Departmentation will increase the working performance of the organization.

  • By bringing approximately department of features and obligations, departmentation affords enough scope for increase and expansion.

  • By giving enough powers to the managers at the price of various departments and letting them make their own choices in the powers given to them, departmentation will increase the status of the managers.

  • Departmentation is beneficial to the control to assess the overall performance of the diverse departments and discover the departments which aren't controlled properly.

  • Departmentation centers right supervision, because the authority for making choices is subtle to the managers of the departments.

  • As the authority for making choices is subtle to the managers of the departments below departmentation, departmentation frees the pinnacle of control from ordinary topics and enables them to focus on vital topics.

  • Departmentation makes price range instruction easy.

  • Departmentation contributes to overall performance appraisal. It is no longer handiest in solving duty however additionally in assessment of labor completed via way of means of the individuals.

  • Departmental centers correctly manipulate via means of grouping activities and employees inside well-described areas, placing requirements of overall performance and via means of getting ready budgets.

  • Departmentation contributes to the improvement of managerial employees.


Departmentation controls the overall performance of the organization in a better way. Different departments manage different activities. Departmentation increases the status of the employees from time to time; thereby contributes to the improvement of the employees.

Updated on: 19-Aug-2022

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