This document discusses departmentalization in organizations. Departmentalization is the process of combining jobs and teams into functional departments based on their specialization to achieve organizational goals. The key objectives of departmentalization are to maintain control, simplify operations, increase efficiency, and fix responsibilities. There are several types of departmentalization including functional, geographic, product, and process departmentalization. The main advantages are that it enables meaningful work and easy coordination within departments, while the disadvantages include reduced adaptability and flexibility between departments.

1. STAFF NAME : DR.S.MANI
SUBJECT NAME : BUSINESS ORGANISATION
AND MANAGEMENT
TOPICS: DEPARTMENTATION

2. DEPARTMENTALIZATION
Departmentalization or Departmentation
is a process wherein jobs/teams are combined
together into functional units called as
departments on the basis of their area of
specialization, to achieve the goals of the
organisation. So, in this way, the entire
organization is divided into parts,
i.e. departments which comprise of a group
of employees, who carry out activities of
similar nature.

4. OBJECTIVES OF DEPARTMENTALIZATION
Maintaining control
Simplifying the operational process in the
company
Grouping the specialized activities under
one umbrella
Increasing the efficiency of management
and ultimately the organization
Fixing responsibilities and of course
accountability

5. IMPORTANCE OF DEPARTMENTATION.
Increases EfficiencyFixes Responsibility
Managerial Appraisal
Better Budgeting
Specialization
Helps in Human Resources Development
Coordination and Control

6. TYPES OF DEPARTMENTALIZATION
Functional departmentalization
Geographic departmentalize
Product departmentalize
Process departmentalize
Customer departmentalization
Divisional departmentalize
Matrix departmentalize
Planning Task Force

7. ADVANTAGES OF DEPARTMENTALIZATION
Departmentalization is an effective grouping
that enables meaningful work
It is easy to coordinate different work in the
same department
Departmentalization results in the integration
of work
Achieves economic advantage
Departmentalization enables utilization of
local conditions via low operational costs
Simplifies training

8. DISADVANTAGES OF DEPARTMENTALIZATION
 As departments continue to grow it creates less
adaptability within the organization
 When a company groups activities and people in
one specific department there is little room for
flexibility
 Difficulty in coordination between different
departments
 Less responsibility and accountability as the
departments are concerned with their own space
and not the company as a whole.

9. FACTORS TO BE CONSIDERED IN
DEPARTMENTALIZATION
Specialization
Control
Co-ordination
Proper Attention
Human Consideration
Local Condition
Economy