Introduction
1. When two or more people work together to achieve a group result, it is an organization. After the objectives of an organization are established, the functions that must be performed are determined. Personnel requirements are assessed and the physical resources needed to accomplish the objectives determined. These elements must then be coordinated into a structural design that will help achieve the objectives. Finally, appropriate responsibilities are assigned.
2. Determining the functions to be performed involves consideration of division of labor; this is usually accomplished by a process of departmentalization.
Definition
3. Departmentalization or departmentalization refers to the process of grouping activities into departments. Departmentalization is the process of breaking down an enterprise into various departments. How jobs are grouped together is called departmentalization.
Rationale for Departmentalization
4. A Department is an organization unit that is headed by a manager who is responsible for its activities. Departmentalization and division of labour are same things. However technically both are different. Both emphasize on the use of the specialized knowledge, but departmentalization has higher management level strategic considerations while the division of labour has a lower level operating considerations. This is the basis by which jobs will be grouped together, and every organization can have its own way of doing so depending on the business operations and company objectives. Departmentalization is a process resulting out of choice to group tasks according to some criterion. The resultant process of departmentalization includes decisions regarding segregating organizational work, allocation of work to persons, telling all involved who is in charge and provide for the support needed by those. Given the nature of these choices and decisions, departmentalization and the criteria or bases used for creating