Definition: is a business practice, in which connected individual tasks and assignments, as well as their allocation to various task groups, are combined in order to create a specific functional area (also known as a department) that is distinctly different from all other functional areas within a single company. As a structuring method, departmentalization can be used for both public and private companies and can be performed in several ways (functional, product, geographic, process, and customer).
In a Sentence:
When performing a departmentalization in your company, it’s vital that you don’t create any unnecessary departments, as it will lead to unwanted bureaucratization without any real benefits.
Ever since Gemini employed a departmentalization strategy, their profitability and overall productivity have increased, as now each employee knows his place and circle of responsibilities.
Synonyms and related words: institutionalization, department, business unit, functional area