Factors to be considered while designing a suitable Departmentation

Factors in Departmentation

Each pattern of departmentation has its own merits and demerits. Besides, each one is suitable under specified circumstances and become unsuitable for other occasions. Hence, there is no one best way of departmentation applicable to all organizations.

Factors in Departmentation

Factors in Departmentation

Managers must determine what is best by looking at situation and after considering various factors. The following factors are to be considered while designing a suitable departmentation.

1. Specialization

Departmentation should be made in such a way to yield the maximum advantage of specialization. Specialization is considered as the most important feature of modern enterprise. Hence, this factor should be given due consideration.

2. Control

The departmentation should simplify the executives’ task of control. A suitable system of internal check is to be evolved and incorporated in the pattern of departmentation. As a general rule, one activity, intended to serve as a check on another, should be under a separate executive.

Similarly, a clear-cut division of work between various departments is essential to affix responsibility. In no way, the process should have the effect of diluting the control of the head quarters.

3. Coordination

All inter-connected activities should be placed in one group and assigned to one executive. This will facilitate coordination of all the activities. Lack of coordination of various activities shall result in the failure of the firm. Hence, every effort should be taken to co-ordinate all the activities of the enterprise so as to achieve its cherished goals.

4. Attention

All important functions which are basic to the organization should be given due recognition. For giving it greater attention than other activities, it may be placed in a separate division.

5. Recognition of Local Conditions

While forming departments, attention must be paid to local conditions at the places concerned. For example, attention should be paid to the personalities of the people who will perform the activities or to the pattern of informal relationship among people.

6. Economy

The expense involved in creating a separate department or division should also be taken into consideration. Though too much importance should not be attached to this factor, it should not be ignored altogether.