The major process of office management is departmentation. The process of grouping the various activities into departments is called departmentation. Departmentation is otherwise known as divisionalisation. An office goes for departmentation because of the following reasons:

(a) In large business houses departmentation is essential because all the activities cannot be performed at one place. Identical activities are grouped together and are done in a separate department.

(b) The need of departmentation arises because there is a limit to subordinates a supervisor can manage. When such limit exceeds, departmentation arises.

(c) Departmentation facilitates fixation, of responsibility, which are of prime importance for smooth functioning of office work.


(d) Departmentation is done to secure better co-ordination of the employees and subordinates.