What is Time Departmentalization? Definition, When To Use, & Pros/Cons

Departmentalization by time

What is Departmentalization by Time?

Departmentalization by time is an organizational structure-creating method in which departments are created based on time to perform the activities.

Usually, the departments are created on time to work as day shift, morning shift, evening shift, night shift, and so on.

According to the shift, a separate department is created and a departmental manager is assigned to control and coordinate the activities of the concerned shift.

Departments carry out the same functions in different shifts independently.

Under each such shift department, functional units (marketing, production, sales, R&D, account, etc.) come to carry out the activities effectively and efficiently.

This departmentation method is common in organizations that work 24 hours a day such as Hotels, Hospitals, Airports, telecommunication companies, and other public utility organizations.

This process ensures flexibility in employees’ working time and they can easily choose the shift in which they want to work.

It is equally beneficial to employees and customers as they can get benefits from the organization at the time they want.

Advantages of Departmentalization by Time

Following are the main pros and cons of time departmentation.

Employee Satisfaction

Time departmentation lets employees choose the working shift as per their needs.

It increases the satisfaction of employees as their work to be done is managed as per their needs and interests.

Customer Satisfaction

Time departmentalization is also a means to achieve greater customer satisfaction.

Since it enables customers to take benefits of organizations at any time they can take advantage of it as they want and get satisfied.

Ensures Flexibility

This method is a flexible method of departmentalization.

So, organizations can change the authority-responsibility relationship according to the needs of the organization and environmental change.

Greater Performance

It follows the principle of division of work. It ensures the maximum use of resources, and the production capacity is increased within limited resources.

Related: Departmentalization by Geography

Disadvantages of Time Departmentalization

Coordination Problems

Managing effective coordination between different shifts is challenging because each shift operates independently, which can result in communication gaps and inefficiencies.

Duplication of Efforts and Resources

Since every shift performs the same functions separately, there is a high possibility of redundant use of resources and efforts, increasing operational costs.

Shifted Responsibility

Responsibilities may shift from one department to another due to unclear accountability across shifts, leading to delays or incomplete tasks.

Ineffective Interdepartmental Communication

Communication between shifts can become less effective, as there may be limited interaction or miscommunication between teams working at different times.

Read More: Meaning of Core Product

When To Use Time Departmentalization?

The following are 4 suitable conditions for using departmentalization by time in the organization:

Organizations Operating 24/7

Time departmentalization is highly effective for organizations that must remain operational around the clock, such as hospitals, airports, telecommunications, and customer support centers.

By dividing the work into shifts (morning, day, evening, and night), it ensures that essential services are always available.

This structure avoids burnout among employees by providing designated work periods and proper rest.

For example, a hospital’s emergency services department can manage patient care seamlessly by assigning shifts to doctors, nurses, and support staff to maintain a steady flow of operations.

Flexible Employee Work Preferences

This method is suitable for organizations that value employee flexibility in choosing work hours.

For instance, employees who prefer working early mornings, late evenings, or even night shifts can be accommodated under time departmentalization.

This flexibility is particularly beneficial in industries like IT support or hospitality, where work-life balance is important.

By aligning shifts with employee preferences, the organization fosters a positive work environment, boosts morale, and improves employee retention and productivity.

Read More: Administrative Management Theory

High Demand Across Different Time Periods

Businesses that experience fluctuating customer demand throughout the day, such as retail stores, e-commerce platforms, or call centers, benefit significantly from time-based departmentalization.

By scheduling employees for peak hours, such as weekends or evenings, the organization ensures that there are enough staff members available to handle increased workloads efficiently.

For example, a customer service department might have more representatives during the evening when customer inquiries are higher and fewer staff during slower periods like early mornings.

Maximizing Resource Utilization

Time departmentalization is particularly useful in industries that rely on expensive resources, such as manufacturing plants or utility services.

By dividing operations into multiple shifts, the organization can ensure that machinery, facilities, or tools are utilized to their full potential throughout the day and night.

For example, a factory can operate continuously by assigning three shifts (morning, afternoon, and night), thus avoiding downtime and maximizing production output without requiring additional infrastructure investment.

This approach ensures efficiency and cost-effectiveness while meeting production deadlines.

Read Next: Process Departmentalization

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