In a short essay, list and discuss three common forms of departmentalization
What will be an ideal response?
Answer: (any three of the following)
Functional departmentalization
Jobs are grouped by the functions (i.e., marketing, finance, human resources) performed. This approach can be used in all types of organizations, although the functions change to reflect the organization's objectives and work activities.
Product departmentalization
Jobs are grouped by product line. In this approach, each major product area is placed under the authority of a manager who is a specialist in, and is responsible for, everything having to do with that product line. Examples might include men's shoes, women's shoes, men's clothing, women's clothing, and so on.
Geographical departmentalization
Jobs are grouped on the basis of a territory or geography that is served. Territory might reflect the location of employees, customers, plants, and so on.
Process departmentalization
This method groups jobs on the basis of product or customer flow. In this approach, work activities follow a natural processing flow of product or even customers. An example of process departmentalization is a motor vehicles office that is organized around a process that customers use to obtain permits, licenses, and other services.
Customer departmentalization
Jobs are grouped on the basis of common customers who have common needs or problems that can best be met by having specialists for each. An example of customer departmentalization includes separate retail, wholesale, and government customers at a large firm.
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