Departmentalization is the process of dividing a business into departments or functions. The word departmentalize comes from the French word “department” and means “to divide into departments.”
Process departmentalization is used in manufacturing environments. It can be applied to individual departments, divisions or entire companies.
Process-based departmentalization is used when there are many different types of processes within an organization that need special skills and knowledge to perform them effectively. It also helps to ensure compliance with regulatory requirements because each department performs only those tasks related to its specific area of expertise, rather than having a wide range of responsibilities like in functional departmentalization.
Process departmentalization can improve efficiency and quality. It allows you to organize your business around specific functions and tasks. This means you can develop expertise in each function, which makes it easier to focus on doing one thing well. For example, if you have an accounting department that handles all accounting functions, they’ll be able to specialize and become experts in their field. They will also be able to offer expert advice on best practices and strategies within the accounting field.
Departmentalization can be useful for both small and large companies. It allows for easier communication among employees and also allows for increased efficiency in completing projects.
