The main advantages of departmentation are:

  1. It contributes to systematic distribution of work among individuals.
  2. It contributes to the attainment of specialisation
  3. It simplifies managerial tasks.
  4. By defining the duties and responsibilities of the executives clearly, departmentation fixes accountability for the results. This makes the executive alert and efficient.
  5. Departmentation increases the operating efficiency of the organisation.
  6. By bringing about division of functions and responsibilities, departmentation provides sufficient scope for growth and expansion.
  7. By giving sufficient powers to the managers in charge of different departments and allowing them to take their own decisions within the powers given to them, departmentation increases the prestige of the managers.
  8. Departmentation is helpful to the management to evaluate the performance of the various departments and find out the departments which are not managed properly.
  9. Departmentation facilities proper supervision, as the authority for making decisions is diffused to the managers of the departments.
  10. As the authority for making decisions is diffused to the managers of the departments under departmentation, departmentation frees the top management from routine matters and helps them concentrate on important matters.
  11. Departmentation makes budget preparation easy.
  12. Departmentation contributes to performance appraisal. It helps not only in fixing responsibility but also in evaluation of work carried out by the individuals.
  13. Departmentation facilities effective control by grouping activities and personnel within well-defined areas, setting standards of performance and by preparing budget.
  14. Departmentation contributes to the development of managerial personnel.
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