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
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
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 departments can have serious impact on the organization's effectiveness. Bases/Types for Departmentalization
Departmentalization subdivides work and workers into separate units responsible for the completion of specific tasks. Grouping related functions into manageable units to achieve the objectives of the enterprise in the most efficient and effective manner is departmentalization. A variety of means can be utilized for this purpose. The primary forms of departmentalization are by function, process, product, market, customer, geographic area, and even matrix. In many organizations, a combination of these forms is used. The bases or types for departmentalization are: (a)
The most widely used form of departmentalization is to group activities by function.. Functional departmentalization defines departments by the functions each one performs such as accounting or purchasing. Every Organization must perform certain jobs in order to do its work. For example, Manufacturing, Production, R & D, Purchasing etc. Same kinds of jobs are grouped together in departments. This kind of departmentalization includes persons with same knowledge or skills (like Accounting Department having persons of commerce, Marketing Department having MBA persons). As in department people with same skill and knowledge are there. Their focus becomes narrow and they cannot appreciate each other’s work in the same department. Functional departmentalization is a method that has been and still is successful in most organizations. It makes sense since it is a natural and logical way of arranging activities. Functional departmentalization also facilitates coordination since a supervisor is in charge of one major area of activity.
Efficiencies from putting together similar specialist and people with common skills, knowledge, and orientations. In-depth specialization. Co-ordination within functional area. (ii)
Poor communication across...
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