What is Process Departmentalization?
Process departmentalization is a method of creating an organizational structure in which the departments are created based on the production process of the product.
It is obvious that the production process to make the final product consists of different stages.
As such departments can be created on the basis of the stages of the jobs production process if a series of complex steps need to be followed to make the final product.
The main idea behind the process departmentation is that when a specific step i.e. process separated into a group of smaller activities it will be much more comfortable to perform such tasks by personnel.
As in other departmentation methods, in this method also for each department, a separate departmental manager is assigned and he is responsible for increasing efficiency and productivity in that concerned process.
The main objective of process departmentation is to maintain working efficiency in each production process and to economize productivity.
This method of departmentalization is effective for manufacturing organizations like textile companies, cement companies, etc. where the steps in the production are easily identifiable.
But is ineffective in service organizations where the process of service product is not identifiable.
Advantages of Process Departmentalization
Some notable pros and cons of process departmentation are mentioned below:
Job Specialization
Departments are created based on specific processes, allowing employees to specialize in one process.
This ensures precision, consistency, and enhanced expertise in their tasks.
Focused Accountability
Department managers are solely responsible for their specific process, fostering a sense of responsibility and accountability.
This focus ensures that each process is handled efficiently and effectively.
Effective Communication and Coordination
Since departments are interdependent, regular communication between process teams is essential.
This dependency promotes better coordination among departments to ensure smooth workflow and seamless transitions between processes.
Flexibility to Environmental Changes
Process departmentalization allows organizations to adapt their structure to meet new technological advances, market demands, or production techniques, making the organization more responsive to changes.
Efficiency in Complex Production Systems
This method is particularly beneficial for manufacturing organizations with well-defined production stages, like textile or cement companies.
By breaking the production process into manageable units, efficiency is improved.
Disadvantages of Process Departmentalization
Limited Applicability to Service Industries
This method is not suitable for service-oriented organizations where processes are not as clearly defined or identifiable, limiting its use primarily to manufacturing industries.
Interdependency Challenges
The strong interdependence between departments means that delays or errors in one process can disrupt the performance and efficiency of the entire production system.
Potential for Bottlenecks
If one process encounters issues, such as equipment breakdown or inefficiency, it can create bottlenecks, delaying the completion of subsequent processes.
Coordination Difficulties in Complex Systems
As the number of processes increases, maintaining effective coordination becomes increasingly challenging.
Miscommunication or misalignment can hinder the overall production flow.
Reduced Flexibility Within Departments
Employees may find it hard to work beyond their assigned processes, as their expertise is confined to specific stages, reducing their flexibility for multitasking or cross-functional roles.
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When To Use Departmentalization by Process?
The following are the 4 suitable situations for using process departmentalization:
Manufacturing Organizations with Defined Production Stages
In industries like textiles, cement, automobile manufacturing, or steel production, the production process involves multiple distinct steps (e.g., weaving, spinning, finishing, etc.).
Process departmentalization allows each stage to be managed by specialized teams, ensuring efficiency, quality control, and streamlined workflows.
Mass Production Environments
For companies engaged in mass production, such as assembly lines, dividing tasks into processes enhances productivity and ensures that the high volume of production is managed effectively.
Each process can be optimized independently, making this structure ideal for such environments.
Read More: Meaning of Augmented Product
Organizations with Technologically Advanced Processes
Industries relying on advanced technology (e.g., electronics or pharmaceutical manufacturing) require specialized departments for each technological process (e.g., formulation, testing, packaging).
Process departmentalization ensures these sophisticated steps are handled with precision by skilled teams.
Operations Requiring Sequential Workflow
In industries where tasks must follow a strict sequence, such as food processing or chemical manufacturing, process departmentalization ensures that each stage of the workflow is completed accurately before moving to the next.
This structure maintains the integrity of the product and prevents disruptions in the sequence.
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Sajan Kushmi is a content writer with more than 4 years of experience. He holds BIM Degree. He write on the topics related to Management, Marketing, and Entrepreneurship.