Departmentalization - Essay Example

The importance of the departmentalization is to enhance the performance of the employees and to implement successful planning by the management to encourage efficiency. The significance of departmentalization is to improve efficiency of the organization through specifications. The efficiency and responsibility increases with the implementation of departmentalization, which facilitates the emotion of autonomy among the managers. Due to this form of management structure, every department has a manager and the responsibility is hence divided in the departments.

The facility of appraisal, budget preparation and the supervision become easier and more effective after the implementation of the departmentalization (Anbuvelan 103-106). The purpose of the departmentalization is to ensure smooth administration at every level. It is the process of dividing the large organization into small functional groups for proper flexible administrations. The use of this form of organizational structure increases the efficiency of the employees. This makes the executives more responsible and helps in increasing the prestige and skills of the departmental heads. . The study also explores the different forms of departmentalization used by different companies in the global context.

TYPES OF DEPARTMENTALIZATION Departmentalization is the procedure of dividing the large organization into various small units. Every department has their own manager and specific work to increase the efficiency and its effectiveness. There are six forms of departmentalization with the aim to increase efficiency in the work environment. Functional Departmentalization. In this form of departmentalization, the grouping is done on the basis of the functional aspects. The grouping is done on the basis of skill and knowledge.

The group or departments formed generally include the accounting, marketing and Information Technology (IT). This form of departmentalization is present in every organization. The basic organizational functions are done in this form of departments and through this form the nature of the business can be realized. In this departmentalization form, people with similar skills and knowledge perform the tasks and hence the focus becomes narrow which increases the efficiency level (Mahida 4-5). Advantages In this approach, the level of efficiency increases as people with similar skills work together and the knowledge shared enables to derive decisive benefits for the organization.

Functional departmentalization increases the level of analysis because of the in-depth knowledge of the people in a department. It helps in facilitating easier coordination within the department and the organization. It also reduces the cost of repetition and minimizes the need for training (Pride, Hughes and Kapoor 196-197). Disadvantages In terms of disadvantages, it is at times observed that