Importance’s of Departmentation

The major importance of the departmentation is along following lines.

1.         Advantages of Specialisation. Probably the most important single principle in an analysis of the classical approach to organisational design is specialisation of work. This principle affects everyone every day. The basic advantage of the specialisation lies in terms of efficiency with which the work is performed because a person focuses his attention on a narrow aspect of the work and he gets mastery over that aspect. Naturally this results into performing the work more efficiency. Thus if the managerial function is conceived as a set of activities facilitating the work of the organisation, these activities can be carried out more efficiently and effectively through the division of work leading to a specialisation of managerial function.

2.         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 accurately. The manager concerned to whom responsibility is given can be delegated corresponding authority. When both responsibility and authority are clearly specified, a manager knows what exactly he has to do in the organisation. This helps the manager to become more effective.

3.         Development of Managers. Departmentation helps in the development of 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 managers’ role is prescribed and training can provide them opportunity to work better in their area of specialisation. Thus need for training and its methods can be easily identified.

4.         Facility in Appraisal. Managerial performance can be measured when the area of activities can be specified and standards in respect of 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 affecting the performance can be pointed out more easily. Similarly, standards for performance can be fixed easily because factors affecting the work performance can be known clearly. Thus performance appraisal will be more objective when departments have been created.

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