What do you understand by departmentation?

Departmentation is when a big company or organization divides itself into smaller groups or departments based on specific tasks or functions. For example, a grocery store may have different departments for produce, meat, and bakery. This helps the company run more efficiently because each department can focus on their specific job. An analogy for departmentation is like a school where there are different classes for different subjects like math, science, and English. Each class has its own teacher and students who focus on that subject. A verifiable fact is that according to a study by Harvard Business Review, companies that use departmentation are more likely to be successful and have higher productivity levels compared to those that don’t. This shows the importance of organizing a company into departments.