Departmentalization- Meaning , Importance and types

Departmentalization 

It means a process of grouping the activities on the basis of work, customer, flow and  other different  basis. In other words dividing your whole organization into small departments or group. So this is departmentalization definition. 

Now I am going to explain why an organization should do departmentalization. There are numerous advantages your organization may get dividing whole into department. Today world is very fast so if you want to compete with big organization or business industries you need department in you organization e.g sales people have separate department so all the dealing of sale of goods and services performed by sale department and as like sales you must have department for production, purchase. So this will make you organization looks smooth and every department will perform their own separate duties and responsibilities.  Now under these four headings I am explaining advantages of departmentalization. These headings are; 

1. For developing specialty 
2. For administration control
3. For fixing responsibility 
4. For expanding your organization

1. 

In first of these heading through a departmentalization work is divided into different sector or departments. So in this if you divide the work according to nature and responsibility. You have divide this work among the manager who are qualified and efficient in specific type of work they preformed their duties efficiently. So in this way  you develop speciality, because if a manager is involved in o ne specific work his efficiency increases in specific fields. 

2. In this heading if full administration control set and there are separate departments so every department head can easily check the performance and if actual performance deviates with planned performance than admin of particular department may take action to remove barriers. So good departmentalization may enable you to control full organization with just having main admin help. You don't need to check all department managers and admin will make your job easy to control your organization. 

3. If you fixed all departments responsibility than every department is responsible for any thing happen to department. For example goods have been produced  but are not in goods quality so you don't have to bother to much that this mistake has made by which department having departmentalization you know that goods are produced by production department and they are liable for this mistake. So through departmentalization  your job easy to fix responsibility.

4. Just think one minute that if you don't have department and you expanded your organization. I am sure it will come to your mind that it will look like crowd in a football match. So before expanding your organization you must have to divide your organization into department. Because in department you  easily expand your organization. E.g in a school you may seen that they have departments and they handling over thousands of students easily and if they expand their school they have no problem to handle even more students or higher levels students. 

Now after understanding this full topic on why you  need departmentalization another thing is that how you can do departmentalization, I am explaining these types and  on the basis of these types  you can  departmentalize your organization.

Types of departmentalization on different basis 

1. Departmentalization by function 
2. Departmentalization by product 
3. Departmentalization by customer
4. Departmentalization by territory

1. Under this type various departments are created depending on nature of functions to be performed. 

Like production, marketing, finance etc. So function is about nature of work. Every organization divide work on the basis of function to be performed. 

2.  Second type of departmentalization used  in firms which have involved in large scale product and services. So if organization is involve in larger scale of products and services, owner must have to create department for single line product and all function should brought together in separate department. 

3. In 3rd heading departmentalization is did on the basis of customers. If your organization is dealing with numerous customers you may need this type of departmentalization. This can be apply on those organization which deals differently with different customers. Like I say bank deals differently with different customers so they need this type of department for their organization. 

4. This type of departmentalization applied on those organization whose geographically spread out in many cities or countries. Examples are bank insurance company transport company etc they are  distributed through out nation. 

So

do departmentalization for your organization betterment and make yourself enable to check your business activities very easily.