Departmentation in an organisation

Departmentation is the process of dividing the activities of an organisation and forming specialized groups. For each department a manager is given authority to undertake functions.

The purpose of departmentation is to specialize, activities, simply the tasks of managers and maintain control.

Koontz and O’Donnell define a department as “a distinct area, division or branch of an enterprise over which a manager has authority for the performance of specified activities”.


Departmentation facilitates communication, coordination and control thus contributing to the success of an organisation. Departments are classified on the basis of functions, products, territory, customer, equipment and time.