Departmentalization has several advantages such as promotion of specialization, fixed authority, proper allocation of resources, better control etc. In this post we are going to discuss some notable benefits or importance of departmentalization in brief.
The main advantages of departmentalization can be highlighted as follows:
1. Specialization And Work Division
Different functions of organizations are classified into different units and departments according to the nature of job such as accounting department, marketing department, HR department, R&D department etc. Efficient and capable managers and employees are appointed as per the need of each department. So, departmentalization promotes specialization and division of work in the organization.
2. Improved Productivity
Departmentalization gives importance to specialization, work division and proper utilization of human and nonhuman resources at the workplace. This leads to higher efficiency and accuracy. It helps to increase productivity and profitability of the business.
5. Resource Utilization
3. Fixed Authority And Responsibility
Authority and responsibility can be delegated or fixed to the departmental managers according to their skills and nature of the work.
4. Measurement Of Performance
Certain job is assigned to each department according to the nature of work. So, performance of each department can be measured easily on the basis of their output. It helps the top level management to take corrective measures if any weakness and errors found.
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Departmentalization ensures effective utilization of organizational resources (both human resource and technological resources) in the organization. It helps to improve the performance of operational activities.
6. Better Administrative Control
Departmentalization classifies the whole organizational activities into small units and assigns to different departments. So, proper supervision and better control is possible.
