Question

How does departmentalization affect organizational structure?

Answer 1

To effectively perform the management functions, it is recommended that an organization should observe formal chain of command, rights and duties etc. there are many ways to structure the organization including departmentalization.  

Departmentalization helps the organization to divide the work and then group together the same nature work. This is a type of specialization that offers many benefits to the organization.  

- Responsibilities can be assigned to the experts that eventually increase the efficiency and accountability.  

- Performance of the organization gets better due to defined line of authority, planned objectives, fixation of responsibility.