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Should you create subdomains for each site, for each division, or even for each department? You have a lot of latitude in your choice because of DNS's scalability. You can create a few large subdomains or many small subdomains. There are trade-offs whichever you choose, though.
Delegating to a few large subdomains isn't much work for the parent because there's not much delegation to keep track of. However, you wind up with larger subdomains, which require more memory to load and faster name servers, and administration isn't as distributed. If you implement site-level subdomains, for example, you may force autonomous or unrelated groups at a site to share a single zone and a single point of administration.
Given the advantages and disadvantages of either alternative, it may seem difficult to make a choice. Actually, though, there's probably a natural division in your organization. Some companies manage computers and networks at the site level; others have decentralized, relatively autonomous workgroups that manage everything themselves. Here are a few basic rules to help you find the right way to carve up your namespace: