Q.Creation of different departments in business organisation is based on which principle of Fayol?
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Start your 14-day free trial to unlock the full solution →Creating separate departments (production, finance, marketing, HR, etc.) in an organisation is an application of Fayol's principle of Division of Work.
Henri Fayol's principle of Division of Work means splitting the entire work of the enterprise into smaller, specialised tasks so that each individual or department performs a limited, specific set of activities repeatedly, instead of one person trying to do everything. This specialisation improves efficiency, quality and speed because people become experts at their narrow job. In a real organisation, this principle is what drives the creation of separate departments like production, finance, marketing, purchase and human resources — each department is itself a product of dividing the organisation's total work.
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