Concept And Meaning Of Departmentation
Departmentation means grouping and dividing similar organizational activities into smaller units on logical basis. It is a process of identifying, analyzing, arranging and grouping the jobs into small and flexible units for different departments and sections.
Departmentation helps to increase the efficiency of the organization. Division of work helps to manage and complete work effectively. It helps to control overall organizational activities easily.
Therefore, departmentation is very useful to promote efficiency, maintain coordination, increase responsibility and control overall activities of the firm.
Importance And Advantages Of Departmentation
Benefits and importance of departmentation are as follows:
1. Systematic Division Of Work
Departmentation simplifies the job with systematic division of work. So, it ensures effective functioning of the organization.
2. Specialization
Departmentation ensures specialization of because of work division.
Departmentation ensures administrative, financial ad managerial control by dividing jobs and personnel in systematic manner.
Departmentation helps to boost organization's efficiency because of division of work, specialization and effective control.
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5. Management Development
Departmentation simplifies managerial tasks. It helps managers to perform effectively.
6. Chance Of Expansion
Because of specialization, work division, effective control and efficiency, organizational functions can be performed with high level of speed. So, there is a huge scope of mass production and expansion of business.
