Departmentation

We divided the dimesions jof a formal organisational structure into two parts- vertical dimensions and horizontal dimensions.  The horizontal dimensions of the organisation structure is based on the process of specialisation.  It means that the whole work is divided into many groups on the basis of similar with of work so that an officer with special ability and proficiency can be appointed for each work group.  Because of specialization there  is decrease in the work load of not only every offcier or manager of each work. group but each officer can perform his function more efficiently, dividing work on the basis of specialization is known as departmentation, and the work groups thus established are called departments.

For example: a manufacturing concern can cancern can have production, marketing , financial and personnel departments.  Before establishing these departments the  work is decided on the basis of the aims or objectives of the enterprises.  All the activities of a similer  nature are put together in a work group of department. 

NEED AND IMPORTANCE OF DEPARTMENTATION:

1.       DEVELOPMENT OF MANAGERIAL SKILL:  Because of departmentation the managers perform certain function tome and again, and remaining within their limit take decision about them.  They become expert in their department within a short span of the time.  Their being expert in their field helps them in their work performance which is not only good but is also done within the minimum time.

2.       ESTABLISHMENT OF MANAGEABLE UNIT: Under depamentation all the activities in an enterprise are divided into different departments.  It becomes easier to manage these small departments.  A head of each department  is appointed who has the knowledge and experience of that particular department.  Manager or head with the help of their knowledge and experience of that particular department.  Manager or heads with the help of the it knowledge and experience perform their function in time and in an economical manner.  This increase the goodwill of the enterprise.

3.       FIXATION OF RESPONSBILITIES:  Under departmentation it becomes possible to define the responsibilities of every head of the department.  If an empliyee is assigned the work of the whole enterprise rather than one particular work, it becomes difficult to fix his responsibilities.  In that case each employee tries to shift responsibility for unfavourable results to others.  On the contrary, when responsibility is fixed it becomes velar to all the managers as to what they are expected to do or avoid doing.  Thus, their whole attention gets riveted to one direction, and consequently their efficiency increase.

4.       PERFORMANCE APPRAISAL POSSIBLE: After the division of work the performance of each department can be assessed.  Standards for all departments are laid down and the actual work performance is compared with the standards laid down and an attempt is made to find out the deviations.  Thus, the knowledge about the unfavourable results is obtained in time and corrective action initiated and the persons concerned can be held responsible.

5.       BUDGETING FACILATATED: Because the cost in each department can be estimated, it becomes easier to frame the departmental budget.

6.       CONTROL EXPENDITURE: If the enterprise is run as a single unit it becomes difficult to have a control over the expenses, while the expenses can be controlled by dividing the whole enterprises into smaller units,  all the activities of a department are performed under supervision of one ndividual and he knows what expenses are necessary or otherwise.  In this way departmentation helps in keeping control over expenses.

7.       ADVNAAGE OF SPECIALISATION: Specialisation is the basis of departmenbtation and it is, therefore, natural for the enterprises to have the advantages of specialization.  When a particular individual performs a job repeatedly he becomes an expert and does his job well, in the minimum time and less cost. this is the advantages of specialization which an enterprise gets through the medium of departmentation.

FACTORS TO BE CONSIDERED IN DEPARTMENTATION:

1.       SPECIALISATION: Specialisation is the foundation of departmentation and, therefore, whatever may be the method of departmentation  it must have a place for specialization.

2.       COORDINATION: A department should have the function of the same nature so that coordination remains intact.  Unnecessary and opposing functions should be excluded.

3.       CONTROL: That method of departmentation happens to be good which can ensure control.  Such a system should be established as can ensure the control of one man’s work by another person.

4.       SOGNIFICANCE OF ACTIVITIES: Departmantation should be done in manner so as to ensure more attention to the more significant activities.  For example, if the advertisement happens to be a significant activity.  For example, if the advertisement happens to be a significant activity, it should be kept separate from the marketing department so that special attention can be given to it.

5.       FACILITIES AVAILABLE: While going through the process of departmetation the facilities available in the concern should be kept separate from the marketing department so that special attention can be given to it.

6.       ECONOMY: The number of departments in a business organisation inincreases administrative expenses.  Therefore, it should be thoroughly considered as to how many departments are needed in a concern so that unnecessary expenses are avoided, for example by not having a separate accounts department, it can be combined with finance department and economy can be affected.

7.       TO SEE THE COMPETITORS: During the process of departmentation care should taken to0 know about the basis of departmentation in the other business concerns having the same business.  If that basis appears appropriate it should be adopted.

Thus, we find that departmentation is not an essay job.  Many factors have to studied deeply to complete  this process.  Only after such a deep study the decision taken can prove to useful.