What is the Need for Departmentation?

Meaning of Departmentation

The horizontal diversification in an organisation is referred to as departmentation. It is a method of planning activities and staff to make it easier to achieve regular goals.

In a nutshell, departmentation is something that the employer does. In order to improve overall performance inside of the employer, this method comprises splitting and grouping of a certain agency into potential divisions or departments.

Enterprise form is inspired by departmentation, i.e., it is dependent on departmentation. Departmentation divides, for example, the labour department into smaller units and then groups those units (departments) based on traits that are comparable.

As the enterprise grows in size, the paintings are split into devices and subunits. Departments are created and sports of comparable nature are grouped in a single unit. Each branch is headed through someone called the departmental manager.

Need of Departmentation

The control of a corporation is made extra powerful through departmentation. It could be a completely complicated venture for the control without dividing the company into gadgets and subunits. It is necessary on account of the following reasons −

  • Specialization − Departmentation permits the agency to avail the blessings of specialization. The teams are split into one-of-a-kind departments. When each branch appears after one principal function, it ends in a growth in operational performance of the organization.
  • Administrative control − Grouping of activities into attainable devices enables administrative control. The requirements of overall performance of every branch may be exactly determined, in opposition to which real overall performance may be measured and corrective measures may be taken.
  • Fixation of responsibility − Each character is aware of the particular undertaking that they've to carry out withinside the organization. The duty of the employees can, therefore, be exactly constant and the character may be made chargeable for his performance.
  • Expansion − One supervisor can efficiently supervise a confined wide variety of subordinates. Departmentation makes it feasible for the organization to develop and expand. In the absence of departmentation, the dimensions of the company may be confined to the supervisor’s span of control.
  • Appraisal − When the responsibilities allocated to people are surely specified, appraisal of managerial overall performance is simplified. The capabilities and competence required for managerial choices may be without problems identified.
  • Managerial development − It affords possibilities for the education and improvement of the executives. They can work out initiative and make unbiased decisions. The managers can enhance their skills, main to their improvement withinside the organization.
  • Autonomy − Departmentation outcomes withinside the department of enterprise into small gadgets. Every supervisor is given the ok freedom to run those gadgets or departments. The feeling of autonomy offers process pleasure and motivation main to better performance in operations.

Importance of Departmentation

The following points highlight the importance of departmentation −

Organization structure

Division of work into devices and subunits creates departments. Supervisors and bosses are appointed to manipulate those departments. People are positioned in one-of-a-kind departments in line with their specialized skills. The departmental heads make sure green functions in their departments in the large concepts of employer (scalar chain, solidarity of command, solidarity of route, etc.).

Thus, employer shape is facilitated via departmentation. If there aren't any departments, it'll be hard to preserve the song of who's doing what and who's responsible to whom.

Departmentation creates departments, assigns obligations to people, fixes their duty and responsibility to their departmental heads, creates a span of control in order that paintings may be without difficulty supervised. This community of authority- duty relationships is the premise of designing a legitimate agency shape.


Division of work into departments ends in specialization as employees of one branch carry out tasks associated with that branch only. Their attention on a slender set of tasks and again and again acting the equal undertaking will increase their cap potential to carry out extra rapidly and efficiently. Specialization promotes efficiency, lowers the value of manufacturing and makes the goods competitive.

Sharing of resources

If there aren't any departments, organizational sources; physical, economic and human, can be usually shared through distinctive task units. Departmentation enables in sharing sources in step with departmental needs. Priorities are set and sources are allotted in step with the need, significance and urgency concerning their use through distinctive departments.


The enterprise is a system of incorporated parts, and to provide undue emphasis to any useful component on the rate of the whole enterprise creates organizational islands, thus, resulting in inefficiency and large behavioral problems. Creating departments specializes in departmental sports and enables coordination


Managers can't manipulate organizational tasks in the event that they should be supervised together. Departmentation allows manipulation via means of the departmental supervisor over the sports of his branch only. Activities are divided into smaller segments, requirements of overall performance may be framed, elements affecting overall performance may be recognized and manipulation may be a greater goal in nature.


Flow of work from one stage to some other and for each department, i.e., vertical and horizontal waft of labor withinside the organization will increase organizational efficiency.

Scope for growth and diversification

In the absence of departmentation, managers can supervise a constrained variety of activities, relying upon their competencies and abilities. Departmentation allows them to make their region of operation bigger into new product strains and geographical divisions. Departmentation presents scope for organizational growth (alongside the equal product strains) and expansion (including new product strains).


Since similar activities are grouped in a single branch headed by means of departmental managers, it becomes clean for pinnacle managers to repair the duty of respective managers for accomplishing the favored results. If deliberate overall performance isn't always achieved, the branch accountable turns into answerable. When duty is clear, authority also can be delegated to managers. Clear identity of duty and authority will increase performance of the departmental tasks.

Development of managers

Departmentation allows departmental heads to be innovative in making selections with admiration to their departmental activities. Training desires also can be diagnosed due to the fact the manager's venture is obvious and specific. There are possibilities to enhance overall performance of their vicinity of specialization.

This develops their ability to be promoted to better managerial positions withinside the corporation. It additionally enables recruitment and choice of pinnacle managers from in the corporation as opposed to relying on out of doors sources.


In this tutorial, Departmentation is grouping the different roles into jobs and jobs into companies and companies into departments. Departmentation creates departments, assigns different-different obligations to people, fixes their duty and responsibility to their departmental heads.

Updated on: 13-Sep-2022

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