The Need for Departmentation

Departmentation is necessary because it involves grouping of people or activities into a single department or unit to achieve organizational goals. Departmentation is essential because of the following reasons:

  • Departmentation permits an organization to take advantage of specialization.
  • Departmentation enables each person to know the particular part he is expected to play in the total activities of the company.
  • Departmentation facilitates communication, coordination and control and contributes to the organizational success.
  • Departmentation provides an adequate platform around which the loyalties of organizational members may be built.
  • It enables a manager to locate the sources of information, skills and competence to take certain vital managerial decisions.