What are the steps involve in creating a department? how do we analyse there is a need to create a department?
From India, Meerut
Same way we analyze the need for manpower !
Name the department, find out what skills are needed, then link the skills to the business - cost vs.revenue or revenue impact, study profiles from job portals for similar skills, talk to others in the same business and assess the need/importance, check if it can be automated or not and then step back, pat yourself on the back!

From India, Mumbai
Dear Rajesh,
Departments are developed or designed for a special activity or function. If you feel that your business needs a department with persons who have special skills and knowledge then go ahead and create the one.
Your 110-character post is too shor or it is like SMS. You have not mentioned the context of your query. There is no introduction to your query and which department you would like to create.
If you check Wikipedia for the article on division of labour, you will find thoughts of 14 thinkers.
To create the department, you first need to define the objectives of the department. Thereafter, you need to identify the Key Performance Indicators (KPIs) of this department. Thereafter, you need to derive Key Result Areas (KRAs) from these KPIs and identify what target you would like to set. Based on the target, you need to identify how much manpower you will require, the quality of the manpower, their education qualifications, the knowledge or skills that they need to have etc.
Thereafter, you need to identify reporting structure within the department to whom HoD of this department will report to.
Dinesh Divekar

From India, Bangalore
Dear Rajesh,
Steps are not involved in creating a department rather activities of the organisation.
It depends upon quantum of work and numbers of manpower involvement.
It further depends when some special activities started but not being manged properly or under dual responsible with some other department.
It is suggested to consult an Industrial Engineer with your activities details of your organisation and requirements.

From India, Mumbai
Creating something is not too difficult. If you follow the procedures outlined by Mr. Divekar, you can arrive it. But maintaining or sustaining something that you created is much more challenging. In Governments, they create so many departments and they continue to draw salary, budget, expenses, even after the department outlives its objective. Government is like an octopus. In private organisations, creating a department should be well thought-out, such as whether there is going to be a long-term need or a short term ad-hoc purpose behind it. This needs to be debated at length taking into account various parameters outlined by my learned professionals here. Knee-jerk reactions to feed the whims and fancies of biggies in a company, has to be avoided.
Best wishes

From India
Closing a department will be much more difficult, after creating a new department ! Please remember that. Keep the end in mind while starting something ! Best wishes
From India
Calculation can be done considering your bottom line revenue of your organization.
From India, Gurgaon

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