Process Departmentalization is a manner or practice of implementing a process through combining related activities into separate groups or specialized functional areas which are distinct from each other. The general idea here is that separation of the process into groups of smaller activities makes it easier to perform this process by personnel.
In practice, departmentalization helps organizations make their business processes more manageable and consistent. For example, the selling process is complex and involves various specialists (salespeople, analysts, representatives, auditors, supervisors, etc.) in various activities (prospecting, advertizing, analysis, support, consulting, etc.). Departmentalization helps avoid this complexity through dividing the process into functional areas, so now every activity can be assigned to a particular department or work group. Prospecting is assigned to marketers; advertizing is assigned to ad agents; customer support is assigned to support personnel; etc.
There are two key factors that determine how to departmentalize a given process, as follows:
- Product/Service: if there is a product or service to be produced or sold, the process can be organized into a series of activities that are shared as functional duties between several departments or work groups.
- Customer flow: if the process involves customer management, it needs to be divided on the basis of types of customers served by the company.