In the January 2019 Snapshot Survey, we asked contractors about how departmentalization has impacted efficiency at their companies. Here's one survey question and its results from the summary report, which will be available in its entirety to EGIA members on 2/20/20.
Question: Do you feel that your company departmentalization efforts have increased efficiency?
The ultimate goal of departmentalization is to group similar job functions together in order to simplify operations and increase the efficiency of managing the company. The vast majority of contractors who took our survey (83%) said their company’s departmentalization efforts have increased efficiency at work. 10% said they feel that departmentalization did not increase efficiency and 7% said they have not departmentalized. As a company gets larger, it becomes increasingly necessary to departmentalize in order to appropriately manage responsibilities and accountability, which wouldn’t be achievable without a highly organized business structure.
Here's what a contractor from British Columbia had to say:
“Although departmentalization was initially a difficult thing to implement, once it was in place, it has helped us to effectively manage each area of our HVAC operations.”
EGIA has created a 31-minute video aimed at helping you organize your company income statement into departmentalized business segments for optimized visibility and accountability - EGIA members can visit section 4.2 of the EGIA Best Practices Library to access this valuable tool.