10 important Principles of Departmentalization in an organisation

10 important Principles of Departmentalization in an organisation

Departmentalization in an organisation should keep an eye upon the economic and non- economic factors, as well as upon the size of the company. Following are the main principles to be followed.

1. Departmentalization should contribute to the survival and prosperity of the business.

2. Specialisation should be encouraged by grouping similar and allied functions under one department.

3. Departmentalization should allow clear and comprehensive lines, of communication throughout the organization. Where possible circular communication should be shortened.

4. Departmentalization should avoid duplication of sections by consolidation of existing segments doing allied jobs.

5. Departmentalization should attempt at balancing different activities, consolidation of existing segments doing allied jobs.

6. Departmentalization should not ignore the fact that application must ultimately contribute to the uniform and consistent application of company policies and decisions. Each department is part of the whole organisation.

7. Departmentalization should not weaken control. Even if activities are broken up for creating departments, they must ultimately by coordinated and unified towards the overall business goals.

8. Departmentalization should not lead to so great a degree of specialisation that employees lose all job interest in doing routine and fragmentary pieces of work.

9. Departmentalization should also keep in view the objective of using the individual abilities, talents and experience of executives of the organisation.

10. The size of the company would dictate the degree of emphasis to be placed upon various industrial activities in departmentalizing. According to Fayol, with growling size of a business unit, the relative emphasis upon management function would increase in comparison with the technical functions.