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”.

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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.