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What is a Management Dashboard?
The term Management Dashboard defines a wide range of data reporting and visualization tools or dashboards that allow using various performance & efficiency measures to report on an enterprise’s ability to organize and coordinate its activities in accordance with certain policies and in achievement of pre-determined objectives. What is a Management Dashboard?
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Money Management Action Plan

In this Money Management Action Plan you can read a range of tips and suggestions that will help you manage your money in an effective manner.

Money Management Action Plan
Home » Glossary » What is Process Departmentalization?
What is Process Departmentalization?  

What is Process Departmentalization?


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.

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