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In this article recommendations are made on departmentalization in an institute of technology based on the research findings drawn from the field of organization theory. In the first place, it seems that the critical factor so far as organizational objectives is concerned is the conversion of the high level goal of the organization into operational sub‐goals for the various sub‐groups. Secondly, a consideration of motivational factors indicates that structuring each of the sub‐organizations around a “whole task” has important advantages. In the light of the discussion of the objectives of an institute of technology it seems appropriate that the departments should be goal‐oriented and should do their own teaching in the central and peripheral disciplines rather than use service departments. Care would have to be taken to ensure that these disciplines were taught by competent staff. It is likely that this would result in a coincidence of the departments' goals with those of the institute as a whole, a reduction of conflict within the organization, and the development of sound teaching by a multi‐disciplinary staff committed to the goals of the task‐oriented departments.

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