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Human Resources Management - Organization of HRM

Departmentation - Organization of HRM

   Posted On :  30.05.2018 08:49 am

The first task in designing an organization structure is the identification of activities and grouping them on the basis of some similarity.

The first task in designing an organization structure is the identification of activities and grouping them on the basis of some similarity. The process of grouping the activities is known as departmentation. The need for departmentation arises because of specialization of work and the limitations on the number of subordinates that can be directly controlled by a supervisor. Different bases for grouping are, functions, products, production processes, geographical territories, customer segments etc. Following are the factors that are to be considered in making departmentation:


The basis of departmentation should reflect the specialization in performing the work. If the organization structure reflects well the division of work in the organization through grouping of activities in departments, it could efficiently and effectively contribute to the organization operations.


The best result can be achieved when all activities are performed in coordinated way and each activity contributes in the positive way to others. Thus, the basis of departmentation should ensure that closely connected operations are put together.


Control is the process of analyzing whether the intended results are being achieved and is according to the target and planning made. If the results are not up to the expectations or not in the line we thought of, control mechanism should be applied. If the structure is properly made in the organization over seeing, responsibility and corrective measures could be taken immediately.


A balance should be maintained between the cost of creating a department and its contribution. The existence of a department is desirable only when it contributes more than its cost. For example if the railway administration wants to create a new zone it should consider the cost involved in starting the zone and the benefit that arises in terms of money other than administrative efficiency and convenience.

Local conditions

While creating departments, adequate consideration should be given to the requirements of local conditions. This is more important to those organizations which operate in different geographical areas. If a MNC opens a department in India, it should give due consideration to local conditions, in its own interest.

Human considerations

Departmentation should also take into consideration the human factor in the organization. Therefore along with technical factors, departments should be created on the basis of availability of personnel, their aspirations and value systems, informal work groups, and attitudes of people towards various forms of organization structure. Often organization structure is a major source of satisfaction or dissatisfaction to human beings. Departmentation scheme providing more human satisfaction is likely to contribute more to the organizational operation.


Tags : Human Resources Management - Organization of HRM
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