Benefits Of Departmentation

Departmentation helps in achieving the following benefits :

 

1)     Specialisation: Departmentation leads to the benefits of specialisation as various organisational activities are grouped according to their relation with the specific functions or objectives. Every departmental manager specialises in the tasks assigned to him.

 


2)     Administrative control: Departmentation helps in effective managerial control because the standards of performance for each and every department can be laid down precisely. Every department has a specific objective. This also facilitates keeping expenditure within limits.

 

3)    Fixation of responsibility: Since organisation work is divided into manageable units and authority and responsibility are precisely defined, it is easier to fix the accountability of different managers for the performance of various tasks.

 

4)     Freedom or autonomy: The departments created through departmentation are semi-autonomous units. Their heads are given a sufficient degree of authority to run their departments. This increases the efficiency of the departments.

 

5)     Development of managers: Departmentation helps in the development of managerial personnel by providing them opportunities to take independent decisions and initiative. The executives can develop themselves for promotion to higher jobs.

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