The process of departmentalization

Organizational structure includes the actions such as task syndication, management and coordination which are directed toward achieving the goals of the organization. It can be a mode through which group operates and perform. Actually it is the activity in which organization offers how to manage its task, supervision and the way to coordinate common job or common things which one another. How to put together common things to bring effectiveness. What kind of decision making should happen? Organizational structure effects the organizational action by giving the foundation on which operating strategies and routine snooze and it determines which individual reach participate in the decision making. A couple of six key elements that professionals need proceed through when they are creating organizational structure. Pursuing will be the six elements

Work Specialization

If we first just look into a phrase 'expertise, what first come in our mind is that one thing we can do perfectly. A general so this means of field of expertise can be a complete knowledge about one`s job which he is carrying out. So we can get a specific interpretation of 'work expertise' that work is sub divided into separate job based on the one`s specialization. The main one who can perform any one process perfectly, he'll assign to achieve that activity only.

For example

The process is to stitch a T-shirt. In stitching a T-shirt, it goes under an activity. This technique is divided into different steps like stitching of sleeves, chopping of T-shirt, making of neck of the guitar and etc. So rather than stitching one complete T-shirt by an individual, the jobs divided. Sleeves are stitched by one person; another person is trimming the T-shirt and so on. The steps are divided into different individuals.

Doing one job over and over not only makes the individuals perfect in carrying out it but also save time. Repetition of job increases the rate of the individuals.

For Example

Considering the same exemplory case of stitching a T-shirt, if one person is stitching only sleeves, his swiftness will be increase because of repetition of task. He will stitch sleeves quickly. So scheduled to work field of expertise, speed is raises and task can be completed more rapidly.

Work Specialization is effective for company because training for specialization is better. It really is easier and less expensive to trained employees for specific job rather than whole process.

For Example

Taking again the example of stitching of any T-shirt, instead of training how to stitch complete T-shirt to every single specific, it is more much easier to teach them only 1 step of stitching of any T-shirt.

But in certain instances, organizations have to suffer from individuals diseconomies from expertise. Reason behind human being diseconomies can be boredom, tiredness, stress, low productivity, low quality, increased absenteeism and high start. Productivity can be increased by enlarging the scope of job activities somewhat than narrowing it. It is found that efficiency can be increase when employees are given with a variety of activities to do, permitting them to perform the whole task, and placing them into teams with suitable skills.

In some business, it is more suitable and in some organization it isn't. Reliable use of work specialty area can create problems. So after some time, we have to assign another job to the average person.


When many individuals are doing common jobs in the organization, they have to coordinate with each other. So on the basis of common jobs, individuals are grouped alongside one another. Grouping of people are called 'Departmentalization'. There are five traditional methods for grouping work activities

Departmentalization by Functions

Functional Departmentalization is grouping activities by functions performed. The function here means the nature of the business. The advantage of this type of departmentalization is obtaining efficiencies from placing similar specialties and folks of common skills, knowledge and course together in common devices. So when folks of common skills will continue to work mutually, they can generate more ideas and the work can become more efficient anticipated to which organization can also achieve economies of range. It can be practice in all types of organization.

For Example

In XYZ firm, there are several departments like People Resource, Accounting, IT, Marketing, Money and etc.

Departmentalization by Products

Departments in business can be produced in line with the products they produce. Process can be grouped in line with the specific products that`s imply placing all the actions related to a product under the main one manager. Administrator`s are specialist and responsible for everything related to the merchandise line. Because of this it increases the accountability for product performance.

For Example

In XYZ corporation, they made many products like detergents, shampoo, soaps, butter, glaciers cream and etc. These products are positioned into different departments under one manager.

Departmentalization by Geographical Regions

It is grouping the activities based on territory. If a business have its customers geographically dispersed, it can group jobs on the predicated on geography.

For Example

In XYZ organization, the sales of its product are geographically dispersed in Pakistan. It includes departments by provinces, like Sindh, Baluchistan, N. W. F. P and Punjab.

Departmentalization by Process

Grouping activities on the basis of product, services or customers. Process departmentalization allows homogenous activities to be categorize in which each process requires different skills.

For Example

When we go to hospital for surgery, first we go to reception for admitting process, then go through an operation in surgery, receive operative treatment, and then get release. This process of surgery is divided into different departments.

Departmentalization by Customers

Grouping activities on the basis of common customers or types of customer. Different departments are created to serve the normal kind of customers. The assumption is the fact that the customers of every office have common problems or need which is fulfilled by the departments. These departments are under supervision of the specialist who meet up with the problems and needs of the customers

For example

In XYZ corporation, sales activities are divided in several departments in line with the customers. Departments can be suppliers, wholesaler and departmental stores

Chain of Command

Chain of control is the power, communication and responsibility along which purchases are exceeded in the organization. We can say that the order from top management to the lowest list is the chain of demand. This order should be followed by every staff in the organization. The orders flow downwards in the string of control whereas accountability moves upwards.

For Example

If the supervisor of the business gives the order that every you need to come at 8:00 am sharpened and the period of time will be at 1:00 pm to 2:00 pm. Person who don`t follow the rules and legislation of the business will have to pay fine of Rs. 500. Then every one in the organization should follow it.

There are two ideas in string of order: Authority and Unity of order. Authority is that managers have right to give requests. Each administrator of the organization can give purchases to meet organizational goals and orders should be obeyed by the employees. They are really in charge towards all the managers. But due to many superiors, employees may need to face conflicting demand.

For Example

Manager A is providing orders to boost the sales 5% when compared with last year and Director B is giving orders to reduce cost per unit. So the orders of both professionals should be obeyed.

Unity of command word is that one and only one person has to give purchases in the organization. The orders of that person should to obey by everyone in the business. All the employees are directly responsible to him.

For Example

There is only one director in the organization who has to give orders. Matching to his purchases, sales should increase by 5% when compared with last year. This is actually the only order that ought to be followed by the employees.

But nowadays, string of command word is rarely utilized in the organizations because of progress in the technology and style towards empowering employees. Employees receive rights to have decision so that development can become more effective and reliable. Through progression of technology, employees can converse any where easily. Planning of new buildings, there may be need of many bosses in which unity of control is extremely hard. But still some organization found that chain of order can be productive.

Span of Control

Span of control is a manager can handle just how many employees in group effectively and effectively. Director is how much ready enough to lead the employees. Whether employees are following his command line or not. Span of control determines amount of levels and manager's group has. Span of control can be classified into two types; wider period and narrow span. In wider span there are less levels and less volume of managers. Wider span is better because department of work become easy and firm became more efficient. Because of less quantity of managers, firm have less salary charge so it means it is better in conditions of cost but is not effective. As the course is wider, and less number of managers, it is difficult for manager to supervision them. They are not able to take care of employees because the numbers of employees are greater.

For Example

In XYZ business, there are 1000 employees employed in the organization where there 3 levels of manager; top manager, middle manager and lower director but the output is not effective because managers cannot handle the employees. They don`t have time and energy to supervise them because the span is wider.

In small course, there are fewer amounts of employees working under the head of one director. But the negatives of small period is that it's expensive because fewer employees are working under one director, and much more the director more would be the salary expense. Subsequently, communication in organization is difficult. As director is supervising attentive, employees cannot communicate. And thirdly overly strict observation of director on employees, worker get discourage that organization don't trust them, they are keep eye about them.

For Example

In a restaurant, there are 100 employees and 10 supervision which means uniformly 10 employees will be control by one supervisor.

Centralization and Decentralization

Centralization refers that decision making in the organization can be done by only top management. It's the formal expert that top management will give decisions which will be followed by everyone without any changes. When only top professionals make decision without any view of lower level employees, the organization is centralized. In simple words, top managers has to take decision without any view of lower level of manager is called centralization.

For Example

Top management chose that the medical center of the employees will never be provided for six month because company is experiencing loss for 2 years. It is the decision which is taken by only top management with no suggestion of lower level of employees.

Decentralization refers that decision making isn't just restricted to top management. Decisions are also made by lower level employees because they are more for the action of performance. They are able to quickly solve the condition and more folks are involved in giving decision. Decentralization make employees feel that organization is trusting with them and giving right to make decisions.

For Example

The problem is that company is suffering from loss for 2 years. The employees concluded that as the factory is shut for 5 to 6 days monthly in a year due to attacks in the country, productivity of the business is low. So to achieve the productivity, employees will do as time passes.

Today in modern world, almost all of the organization is pursuing decentralization. It creates organization more flexible and reactive. Lower level employees have more knowledge because they are more near the actions, to allow them to take better decision than top management.


Standardization of job within the organization is called formalization. The guidelines and rules within the business are strictly implemented. It is very clear that what's to be done, when it is to done and exactly how it is usually to be done. You will find no changes in the job of the employees. Employees have to create same type in exactly the same way. The work process is purely defined with guidelines and regulation is called high formalization. You can find drawback of high formalization is the fact that the work is already determine to the employees so they don`t think or make an effort to do use there own self applied. The type of employees is low. As the work is already identify so they also don`t think for alternatives.

For Example

Organization had stringent rules and rules. Everyone should be on their table at 8:00 am pointed and salary will be deducted Rs 200 on every absent who ever has more than 3 absent in a month

Whereas work process is not totally described or non programmed, they has independence to do what ever they want to do. They are able to makes amendment in the task process as it is desire. When jobs are not strictly referred to to the employees, it is named low formalization

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